TOKYO (Reuters) – Japan Airlines Co Ltd (JAL) on Friday forecast a record operating loss of as much as 380 billion yen ($3.63 billion) for the year through March, and said it would retire 24 Boeing Co 777 planes early as the pandemic hits travel demand.

JAL’s forecast range of 330 billion yen to 380 billion yen compared to the 273.1 billion yen loss average of 10 analyst estimates compiled by Refinitiv.

The airline posted a second-quarter operating loss of 92.9 billion yen, versus profit of 82.9 billion a year earlier.

JAL expects cash burn of 15 billion yen to 20 billion yen a month in the second half of the financial year compared to 45 billion yen to 50 billion yen in the first half. It also plans to expand a credit line by 100 billion yen next month.

Japan’s second-biggest airline has, like other carriers, been hammered by a collapse in international air travel demand. It said on Friday it planned to retire 24 of its 777 widebodies by March 2023, though its response is less aggressive than larger rival ANA Holdings Inc.

Reuters
Photo Rob Vogelaar