TOKYO, JAPAN - Japan Airlines, Asia's largest carrier, said Friday its swung back into the black in the three months to December with net profit of 13.1 billion yen after a restructuring drive.

JAL benefitted from rising traffic between Japan and other Asian countries and by slashing personnel costs and introducing business-class service on domestic flights, a statement said.

The net profit in the fiscal third quarter was a sharp gain from the loss of 24 billion yen posted in the same period of 2006.

Revenue notched down 4.4 percent to 558.2 billion yen in the latest period, although the company said the fall was largely due to a subsidiary no longer being on the books.

Asia remained a lynchpin for JAL's growth, with strong demand reported on flights to China, South Korea and Southeast Asian destinations.

But the weak yen appeared to discourage some Japanese tourists from travelling to Hawaii and particularly Europe, where the euro has been soaring, the statement said.

Overall international passenger revenue gained 5.7 percent. Domestic passenger revenue slipped by one percent, although the drop was tempered by the introduction of higher-yielding business-class service, JAL said.

JAL maintained its forecast to return to the black for the full year to March after two unprofitable years.

The company said it has benefitted by making 'large reductions' in traditional summer and winter bonuses to staff and offering early retirement to cabin attendants and other employees.

The carrier has had a troubled record since its 1987 privatisation and a complex merger with domestic carrier Japan Air Systems which was finally completed in 2004 after years of negotiations and integration difficulties.

It is being squeezed by rising fuel costs and the safety scares that sent customers into the arms of rival All Nippon Airways, which has enjoyed strong profit growth even as JAL wallowed in losses.