Japan Airlines Swings to $1.5B Loss

TOKYO (TheStreet) -- Japan Airlines swung to a loss of 131.2 billion yen ($1.46 billion) in the six months ended Sept. 30 amid an operating environment it said "remained extremely severe."

A year earlier, Asia's biggest airline by revenue, posted net income of 36.6 billion yen.

The airline confirmed in a statement Friday that it has turned to the Japanese government for help with its restructuring.

JAL said it is currently "formulating the proposed business revitalization plan" and was working with the government through a "turnaround procedure" that will enlist the assistance of a private operator.

JAL said it was withdrawing its forecasts the fiscal year ending in March 2010.

The airline said international and domestic travel, as well as cargo traffic, all declined during the six-months period, pulling its revenue down 29% to 763.9 billion yen.

JAL has a 10-year partnership with AMR's(AMR Quote) American Airlines, which includes code-sharing, frequent flyer reciprocity and membership in Oneworld. But with JAL undergoing a restructuring, Delta(DAL Quote) is seeking to replace American as JAL's partner.

-- Reported by Joseph Woelfel in New York .

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