Japan Airlines Plans to Buy 42 Jets From Airbus, Boeing — Update
By Kosaku Narioka
Japan Airlines plans to buy 42 airplanes from Airbus and Boeing to be delivered over the next decade, seeking to expand its full-service and low-cost carrier businesses to capture international-travel demand.
Japan Airlines said Thursday that it intends to acquire 10 787 jets from Boeing and 32 from Airbus, comprising 21 A350-900 and 11 A321neo planes.
The Japanese airline didn't disclose the cost of the acquisition. Catalog prices of the 42 airplanes total 1.870 trillion yen ($12.36 billion), according to figures provided by the company.
The Japanese company said it expects an aircraft supply shortage going forward due to a relative lack of production capacity at plane makers and wanted to secure jets early to stay competitive.
It plans to acquire one A350-900 jet to replace the plane it lost due to a collision in January at Tokyo's Haneda Airport.
Boeing slowed production of its bestselling 737 MAX jets in recent weeks as it faced increased scrutiny from the Federal Aviation Administration and the Justice Department following the Alaska Airlines midair blowout.
Japan Airlines projects demand to grow further for international tourism to Japan over the next couple of years, though a recovery in outbound travel will likely be slower.
High inflation and geopolitical risks will likely persist, while decarbonization is expected to accelerate, the company said. It said it aims to limit carbon emissions by acquiring more fuel-efficient aircraft.
Japan Airlines expects higher revenue and net profit for the year starting in April, thanks partly to a recovery in international travel. It forecasts Y100.00 billion net profit on revenue of Y1.930 trillion, compared with the latest projections of Y90.00 billion net profit and Y1.653 trillion revenue for the year ending March 31.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
March 21, 2024 06:26 ET (10:26 GMT)
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