JAL’s new president is concerned about the continuing depreciation of the yen – Desirably around 130 yen to the dollar – Bloomberg

Japan Airlines (JAL) President Mitsuko Tottori said on the 24th that she is “quite concerned” about the current situation where the yen continues to depreciate, and expressed the idea that a level of around 130 yen to the dollar is desirable.

President Tottori, who was appointed as president on the 1st, explained in an interview with Bloomberg and other outlets that JAL is talking about “hoping for the price to be around 130 yen.” He said that in conversations with other companies, he has heard that a price of around 130 or 140 yen is desirable. The reason for his concern was that it would lead to the younger generation of Japan, who will be responsible for the future, not going abroad.

As the spread of the new coronavirus infection, which had caused a significant decline in passenger demand, has subsided, airline companies’ business performance is improving. JAL also expects its EBIT (earnings before interest and taxes) to be 140 billion yen in the previous fiscal year, which is higher than before the coronavirus outbreak. However, while the number of foreign visitors to Japan exceeded 3 million for the first time in a month, there are concerns that the recovery in outbound tourists (overseas tourists) is slow and that fuel costs are rising due to the weak yen and high crude oil prices.

Outbound is slow to recover

Source: Japan National Tourism Organization

In addition, President Tottori said that confidence in the United States has been shaken due to an accident in which a panel of a passenger plane was blown off during a flight. Regarding Boeing, he said, “I think they will be able to overcome the safety issues.”

European aircraft manufacturer competing with Boeing Airbus received large orders from JAL and Korean Air in March. Obtained. JAL announced that it will purchase 21 Airbus A350-900s and 11 A321neos. The order from Boeing is for 10 787s, allowing Airbus to break free from Boeing’s stronghold as the sole supplier of narrow-body (single-aisle aircraft), which has received strong inquiries from airlines.

President Tottori said that since last year, orders have been placed for approximately 30 aircraft each from Boeing and Airbus, and that going forward, the order will not be biased toward one manufacturer or the other, but that “each time we will order the model that is appropriate for the business plan at the time. We will consider the situation comprehensively, identify the situation, and respond accordingly.”

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