Image Source: Japan Airlines

Increased fuel costs, a weaker economy and rising oil prices has Japan’s flag carrier concerned about its future financial direction.

Although Japan Airlines (JAL) reported tenacious net profits in the financial year ending 31 March 2012, the carrier is ambiguous regarding forthcoming operations, according to the airline’s head.

“Since the industry is always exposed to event risks, we have to come up with a cautious plan,” JAL honorary chairman Kazuo Inamori said at a press conference, the Wall Street Journal reported.

JAL posted net profits of ￥186.6 billion between April 1, 2011 and March 31, 2012, with overall operating revenue totalling ￥1,205 trillion.

These profits were better than first forecast last February, “despite event risks such as the Great East Japan Earthquake in March 2011 and the severe flooding in Thailand last October,” it was reported in JAL’s 2011 fiscal results release.

The chairman said JAL remains firmly committed to maintaining aviation safety and plan to implement measures outlined in the company’s Mid-Term Management Plan, announced earlier this year.

Future forecasts for the 2012/2013 financial year are as follows; an operating income of ￥150 billion, net income of ￥130 billion and overall operating revenue totalling ￥1,220 trillion.