Tokyo  - Japan Airlines Corp (JAL) on Friday reported a net loss of 38.5 billion yen (428.19 million dollars) during the October-to-December quarter because of declining business travel.

The loss compared with a new profit of 13.1 billion yen in the same quarter a year earlier.

The nation's largest airline also suffered an operating loss during its third quarter of 39 billion yen, compared with 25.9 billion yen in profit in the same period a year before.

Sales also fell to 485.7 billion yen from 558.2 billion yen.

For the first nine months of the fiscal year, JAL incurred an operating loss of 8.86 billion yen from a year-earlier profit of 82.58 billion yen and a net loss of 1.92 billion yen from a year-earlier profit of 20.45 billion yen. Revenue fell 8.3 per cent to 1.56 trillion yen, the company said.

Revenue from international flights dipped 0.5 per cent from a year earlier to 570.2 billion yen and that from international cargo dropped 7 per cent to 133.5 billion yen.

The declines were attributed to slowing demand in the United States and Europe amid the global economic downturn and the yen's surge against other major currencies.

For the full fiscal year, JAL revised downward its earnings projections, predicting a net loss of 34 billion yen, compared with an earlier forecast of 13 billion yen in profit, and an operating loss of 37 billion yen, compared with the earlier projection of 28 billion yen in profit.

Revenue was downgraded to 1.98 trillion yen from 2.09 trillion yen. (dpa)