JR East Incurs Record Quarterly Loss in April-June
Tokyo, July 30 (Jiji Press)--East Japan Railway Co. <9020>, or JR East, on Thursday reported a group net loss of 155,377 million yen for April-June, against a profit of 91,575 million yen a year earlier, due to a slump in travel demand as people stayed at home amid the coronavirus epidemic.
The April-June loss was the largest ever for the company on a quarterly basis, exceeding the previous record of 61.4 billion yen, set in January-March 2011, when the Great East Japan Earthquake happened.
A plunge in sales caused the railway operator to suffer the record loss, as it was difficult for the company to drastically reduce costs, due to large fixed costs, including payroll and train maintenance costs.
In the first quarter of fiscal 2020, JR East’s sales came to 332,946 million yen, down 55.2 pct from a year earlier. In particular, income from fares for Shinkansen bullet trains, mainly used for long-distance travel, dived over 80 pct.
The company left its full-year earnings projections undecided. For three months from August, its chairman, president and vice president will return 20 pct of their remuneration, and other executives will return 10 pct.
[Copyright The Jiji Press, Ltd.]