Japan Airlines plans 5 pct pay cut to lower costs

TOKYO, May 14 (Reuters) - Japan Airlines Corp (JAL) (9205.T: Quote, Profile, Research), Asia's biggest airline by revenue, said on Wednesday it planned a 5 percent cut in salaries and benefits for most of its employees to lower annual personnel costs by 10 billion yen ($96.4 million).

JAL, which has been overhauling its cost structure to tackle soaring fuel prices and other pressure on its earnings, is in talks with labour unions and aims to implement the cut from October, spokesman Atsushi Abe said.

The airline implemented an across-the-board 10 percent pay cut for two years from 2006/07 as it sought to get back to profitability.

Backed by brisk demand on its international routes, JAL returned to a net profit in the year that ended in March after two years in the red, but it has forecast a 23 percent fall in its 2008/09 net profit. (Reporting by Sachi Izumi; Editing by Hugh Lawson)