Japan Airlines to re-open Osaka-Los Angeles, consider New York-Sao Paulo, cut during restructuring

Japan Airlines' international growth in recent years has been focused on new services, such as to Boston and San Diego. But now Japan's second largest international airline is reviving routes it cut during financial difficulties. JAL has re-instated its second daily New York service and will re-open an Osaka Kansai-Los Angeles route in Mar-2015. That will be JAL's only long-haul route outside of Tokyo, and the carrier has mooted re-opening Osaka Kansai-London Heathrow as well. Also under consideration is resuming Sao Paulo service, likely via New York.

JAL is looking to grow international services as its domestic market faces limited growth prospects. And with 30 787s on order, and later A350s, there are aircraft that will need new routes, even if many orders are for replacement. The drawback to international growth is financial pressure. JAL in 1Q2014 (the three months to 30-Jun-2014) fared much better in its international network than All Nippon Airways, whose rapid expansion at Tokyo Haneda created over-capacity that weakened load factors and yield. JAL's challenge will be to gradually build international services, but further capacity should still dampen international financial performance. However, with margins being in the double digits, there is room to give in exchange for larger profits.