Japan Airlines Co. on Thursday notified its labor union that it plans to reduce the winter bonus for employees by 80% from a year earlier.
The airline, which cut the summer bonus this year by 50%, concluded that further cuts in personnel costs could not be avoided due to the devastating impact of the novel coronavirus pandemic on the industry.
Last year, the firm paid the equivalent of 2.5 months salary in winter bonus, but plans to reduce that to 0.5 months salary this winter.
JAL, taking into consideration the impact on the employees' lives, has also offered a special lump-sum payment of 100,000 yen per person in addition to the bonus.
It marks the first time since 2010 -- when the airline went bankrupt -- that JAL has cut both the summer and winter bonuses due to slumping financial performance.
The airline, which continues to see falling passenger number, especially on international routes, expects to post a loss of up to 270 billion yen for the fiscal year ending in March 2021.
ANA Holdings Inc., the parent company of All Nippon Airways Co., plans to forgo the winter bonus completely, sources said.
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