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JAL's operating profit seen diving 20% on labor costs

Weak oil prices, strong yen also a drag

TOKYO -- Japan Airlines is expected to post a 20% drop in operating profit to 170 billion yen ($1.55 billion) for the year ended in March, roughly in line with its guidance as rising labor costs for pilots and other personnel took a toll.

Sales likely fell 3% to 1.3 trillion yen. Low crude oil prices reduced income from fuel surcharges, and the yen's strength chipped away at income earned in foreign currencies. Revenue per passenger also shrank.

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