JAL to return overclaimed gov't project subsidies of 290 mil. yen

Published June 30, 2026 at 6:21 a.m. UTC

Source: MarketScreener

Japan Airlines Co. said Tuesday it improperly obtained subsidies when participating in government projects related to the development of flying cars and drones, and will return the overclaimed amount of around 290 million yen ($1.79 million).

The airline claimed more employee engagement hours than actually worked when participating in projects under the industry ministry's New Energy and Industrial Technology Development Organization, known as NEDO, the company said.

"We understand that (JAL) submitted labor costs that did not reflect reality," Minister of Economy, Trade and Industry Ryosei Akazawa said at a press conference. The ministry said the same day it would likely discipline the company.

JAL said it initially received 320 million yen from the organization and would now "withdraw from all currently ongoing NEDO projects."

The subsidies were related to the Realization of Advanced Air Mobility Project for the development of next-generation transportation to address labor shortages and improve logistics.

The airline has been struggling with multiple scandals in recent years, including alcohol-related incidents that caused flight cancellations and delays.