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Despite new air routes, traffic between Japan and the US is down from last decade

Analysis

All Nippon Airways (ANA) on 25-Jul-2012 is launching a Tokyo Narita-Seattle service, one of several new routes between Japan and the US to open this year. While these services will grow the market, US-Japan traffic is 25% below 2005 levels, the peak over the past decade.

Traffic has declined between Japan and the mainland US as airlines have reduced frequencies and downgauged services, typically from Boeing 747-400s to 777s, coinciding with a global gradual reduction of the 747. The US leisure markets of Guam, Hawaii and Saipan have also seen sharp decreases.

As ANA, Japan Airlines (JAL) and United Airlines launch new services this year, many to be operated with new 787s, Japan-mainland US traffic could recover to pre-global financial crisis levels. But a complete recovery in the full Japan-US market is unlikely to occur in the medium term.

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