Japan Airlines set a new record for itself with the huge losses it experienced in the second quarter of 2009. They haven’t seen such bad times since 2003. Overall revenue declined by 32% because it was dragged down by weak international sales which were off by 46%. The airlines stock has dropped 21 % in price so far this year.

“Everything is going wrong for Japan Air right now. Costs are excessive, but at the same time, it needs to invest in new aircraft to renew its fleet,” said market expert Yoshihiro Okumura, of Chiba-gin Asset Management Co.

The recession has caused a reduction in business travel which has traditionally bolstered international travel. Swine flu was named as another factor negatively affecting the international market. Besides the trouble in the international sector, JAL saw a drop in domestic sales of 15%.

The troubled airline intends to initiate a series of cost cutting measures in response to the bad news. They will start by eliminating unprofitable routes to China and India as well as stopping service to Paris and Seoul.

They’re also trying to get employees to agree to a cut in pensions but are facing stiff resistance on that front. Employees were forced to a cut in pay last year in October.

Thanks to www.bloomberg.com for the above quote. For more information on this article please visit their website.