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Shares in Japan Airlines dropped as much as 7.9 per cent on Monday after the company forecast a 16.6 per cent drop in operating profit for the current financial year.
The drop follows JAL’s publication on Friday after market close of its annual results for the financial year ended March 31. Accompanying that, the company forecast operating profits would fall ¥28.3bn ($253.5m) during the current financial year to ¥142bn.
JAL said earnings would decrease due to mounting costs from upgrades to its IT system as well as from more engine maintenance, capacity expansion and other temporary expenses.
Operating profit fell 18.6 per cent during the last financial year to ¥170.3bn, with revenue down 3.6 per cent at ¥1.3tn.
Shares in the airline had walked back from their intraday low to be down 7.2 per cent at ¥3,265 in late morning trade. The benchmark Topix index was up 0.3 per cent.