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Japan Airlines has a positive May, but much work to do

Analysis

Japan Airlines reported its first increase in passenger traffic on international routes in eight months in May-2010, with numbers rising 1.6% to 795,927. The carrier, which is undergoing a comprehensive rehabilitation process, stated domestic passenger numbers also rose, by 0.9% to 3.07 million. Traffic last year was affected by the influenza outbreak.

Summary
  • Japan Airlines (JAL) reported its first increase in passenger traffic on international routes in eight months in May 2010, with numbers rising by 1.6% to 795,927.
  • Domestic passenger numbers for JAL also rose by 0.9% to 3.07 million in May 2010.
  • The carrier attributed the growth in international passenger traffic to higher business travel demand and increased traffic on Japan-China routes, driven by the Shanghai Expo.
  • JAL experienced a significant gain in traffic on Pacific routes, with a 15.9% increase, mainly due to a rise in the number of tourists to Hawaii.
  • However, JAL reported a decline in passenger numbers on routes to Europe, Southeast Asia, Guam, and Korea.
  • Despite the growth in passenger numbers, both international and domestic passenger load factors for JAL remained relatively low, at 70.8% and 59.9% respectively, compared to industry standards.

JAL Group international pax numbers growth, RPK growth and ASK growth: May-2009 to May-2010

The carrier cited higher business travel demand and increased traffic on Japan-China routes, due to the Shanghai Expo, while Pacific routes registered a 15.9% gain as the number of tourists to Hawaii rose. JAL reported the following highlights by region:

  • International: 795,927, +1.6%;
    • Trans-Pacific: 198,393, +15.9%;
    • Europe: 72,100, -9.7%;
    • Southeast Asia: 240,771, -2%;
    • Oceania: 17,531, +2.9%;
    • Guam: 29,559, -17.3%;
    • Korea: 105,939, -12.3%;
    • China: 131,634, +16.6%;

JAL Group domestic pax numbers growth, RPK growth and ASK growth: May-2009 to May-2010

International passenger load factors surged to 70.8 ppts, while domestic rose to 59.9%. These are still very low by industry standards.

JAL Group international PLF and domestic PLF: May-2009 to May-2010

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