=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/2003/05/16/f= inancial0924EDT0041.DTL ---------------------------------------------------------------------- Friday, May 16, 2003 (AP) Japan Airlines System reports profits despite travel fears (05-16) 06:24 PDT TOKYO (AP) -- Japan Airlines System Corp. announced Friday it earned $100 million in t= he recently-ended fiscal year, its first results since it was formed with the merger of two airlines. But it forecast a loss for this year on a slight decline in revenue. The company earned 11.6 billion yen for the fiscal year ended March 31. Japan Airlines and Japan Air System, the two carriers that comprise the new company, lost a combined 35.7 billion yen in the previous fiscal year. Sales for fiscal 2002 totaled 2.08 trillion yen ($18 billion), down from 2.29 trillion yen for the carriers combined a year earlier. Both the profit and revenue figures were better than the company's forecast. But the company said it expected to lose money this fiscal year as fears about the SARS outbreak curtail travel to China and other Asian destinations for the entire year. The aftermath of the war in Iraq will likely depress travel through August, it said. Although international passenger revenue rose 6 percent to 668 billion y= en ($5.7 billion) from the combined 633 billion yen a year earlier, domestic passenger revenue slid 3 percent to 629 billion yen ($5.4 billion) from 650 billion yen. The airline said times have been tough for international travel since the Sept. 11, 2001 terrorist attacks in the United States, which were followed by the Bali bombing and worries about the war in Iraq. Price competition heated up in travel within Japan, pushing down revenue although demand remained at about the same level from a year ago, the company said. International cargo revenue increased 14 percent to 157 billion yen ($1.3 billion) from 138 billion yen, especially on rising cargo traffic out of Japan, it said. Japan Airlines System forecast a loss of 43 billion yen ($370 million) f= or fiscal 2003 on sales of 2 trillion yen ($17 billion). International passenger traffic is expected to drop because of SARS and the war in Iraq, but domestic demand will likely pick up slightly while international cargo demand holds steady, the company said. =20 ---------------------------------------------------------------------- Copyright 2003 AP