=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/11/15/f= inancial0653EST0018.DTL ---------------------------------------------------------------------- Friday, November 15, 2002 (AP) Japan Airlines posts profit on lower fuel costs, cargo growth; Japan Air Sy= stems profits shrink (11-15) 03:53 PST TOKYO (AP) -- Japan Airlines Co. posted a 5 percent gain in net profits for the fiscal first half on lower fuel costs and robust international cargo revenues, in its final earnings report following a merger with mid-sized carrier Japan Air Systems. Japan's No. 1 airline, which has been renamed Japan Airlines System Corp= , said net profit for the six months to Sept. 30 was 33.6 billion yen ($278 million), compared with 16.9 billion yen in the same period the year before. Sales slipped to 858.6 billion yen ($7.11 billion), from 871.3 billion yen, due to a slower-than-expected recovery for international flights since last year's Sept. 11 terror attacks sent air travel plunging. Flights to Hawaii and other destinations across the Pacific Ocean have y= et to rebound to pre-Sept. 11 levels, the company said. Despite the sales slide, falling global prices for jet fuel and strong revenue growth in international shipments helped earnings, the company said. Fuel costs in the six-month period fell to 88.7 billion yen ($735 million), from 100 billion yen last year. Japan Airlines has been placing hopes for a turnaround in its merger with Japan Air Systems. The two airlines, which combined their operations in October under the n= ew holding company, are seeking to boost competitiveness, particularly in the Japanese market, where rival All Nippon Airways controls about 50 percent market share. On Friday, Japan Air Systems said net profits in the first half slipped = to 3.4 billion yen ($28.1 million), from 4.8 billion yen the year before. Revenues slid to 207.4 billion yen ($1.71 billion), from 222 billion yen, with demand during the 2002 World Cup soccer finals in Japan and South Korea falling short of expectations and insurance costs since the terror attacks surging. Friday's reports were the last separate earnings announcements for the t= wo companies. Japan Airlines System forecast combined net profit of 24 billion yen ($1= 99 million) on 2.09 trillion yen ($17.3 billion) in revenue for this fiscal year ending in March 2003. The figures are slightly better than JAL's previous forecasts for 23 billion yen ($190 million) on 1.7 trillion yen ($14 billion) in operating revenue. Japan's current fiscal year runs from April to March 2003. =20 ---------------------------------------------------------------------- Copyright 2002 AP