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Japan Airlines reports healthy international cargo

By Staff Reports on July 30, 2014

Japan Airlines reported healthy international cargo in Q1 of 2014, which runs from April 1 to June 30.

The volume of international cargo, in terms of revenue cargo tonne kilometers (RCTK), increased by 16.5 percent year over year, and international cargo revenue increased by 9.2 percent to 14 billion yen (US$136.6 million).

“The Japanese economy has been recovering at a moderate pace, while affected by a reactionary decline in demand following the front-loaded increase in demand prior to the consumption tax hike, though the impact has gradually weakened,” JAL said. “Effects of the Japanese government’s stimulus package have begun to show, although the prolonged downturn of European economies has been a downside risk to the Japanese economy.”

In international freight, JAL captured automobile-related shipments prompted by the moderate recovery of exports, and transit shipments such as perishables.

“In sales, we improved our system at [Tokyo] Haneda Airport and did our best to increase domestic and international transfers, given the increase of flights at Haneda,” Japan Airlines said. “On routes with expected demand, we transported shipments on other airlines’ aircraft through airline charter agreements, on minimizing risks.”

Domestic cargo operations did not fare as well in Q1. The volume of domestic cargo, in terms of RCTK, decreased by 6 percent year over year, and domestic cargo revenue fell by 5 percent to 5.7 billion yen (US$55.6 million).

“Domestic cargo operations were affected by the front-loaded increase in demand prior to the consumption tax hike, which continued to the beginning of the first quarter, and a modal shift from surface transport to air transport due to a shortage of trucks, which consequently increased shipments temporarily,” JAL said.

Total operation revenues for international and domestic cargo rose 0.8 percent in Q1 compared to a year ago.