JAL, whose chief executive announced his resignation a day earlier to end a period of managerial infighting, has been pressed to restructure to prepare for tougher competition in 2009/10, when Tokyo's Haneda airport, the main hub for domestic flights, is due to expand by nearly 40 percent.
Rolling out a new business plan for the next five years, JAL said it would reduce less profitable routes and further downsize its fleet during the first three years, and spend 60 billion yen ($520 million) to improve safety and restore its image, hit by a string of mishaps.
It will spend another 65 billion yen to beef up its products, services and facilities as it tries to sharpen its competitive edge to prepare for a likely rise in the capacity for international flights at Haneda as well as at Narita airport, Japan's main international airport.
Pledging to use its cash resources more efficiently, JAL forecast a swing to a group net profit of 3 billion yen ($26 million) in the year starting in April, and said it aimed to resume dividend payouts as early as the following yearHit by high fuel prices and safety mishaps that included a tyre falling off and an engine catching fire, JAL has forecast a net loss of 47 billion yen for the year ending this month, against the previous year's 30 billion yen profit.
By 2008/09, JAL said it would aim to finish rebuilding a solid operational structure and secure an operating profit margin of at least 5 percent in the final year ending in March 2011.
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