Soaring fuel prices will cost Japan Airlines (JAL) about JPY45 billion yen (USD$414 million) more than initially projected this business year if they remain at current levels, the company said on Wednesday.

In May, JAL estimated its annual earnings based on a jet fuel price of USD$54 a barrel, but the Singapore kerosene price is now hovering above USD$70.

If the price stays at that level it would cost JAL 33 percent more in fuel costs compared with a year earlier, a spokesman said.

JAL, Japan's biggest airline, has hedged about half of its estimated fuel consumption and does not plan to revise its earnings forecast at present, he said.

The company has said it expects to post a group net profit of JPY17 billion (USD$156.4 million) on sales of JPY2.2 trillion (USD$20.2 million) in 2005/06 to March 31.

A spokesman for second-ranked All Nippon Airways said the airline expected fuel costs to rise by JPY28.5 billion (USD$262.2 million) from a year earlier to JPY177 billion (USD$1.63 billion).

It initially forecast an increase of JPY18.5 billion (USD$170.2 million).

ANA had assumed a fuel cost of USD$57 a barrel for this business year. The spokesman said the company had no plans to immediately revise its forecast for a group net profit of JPY10 billion (USD$92 million) on sales of JPY1.33 trillion (USD$12.24 billion).