Japanese airlines base international strategies on inbound demand boom

Japan's major airlines expect that continued strong growth in inbound demand will support ambitious international expansion plans, while lagging outbound demand is showing welcome recovery momentum.

All Nippon Airways (ANA) forecasts that its international capacity will be 1.4 times current levels by early 2031, and Japan Airlines (JAL) is targeting a major increase in revenue from international passengers over the next three years.

Both airlines have sizeable widebody orders to enable their growth goals, as they aim to expand their full service and LCC operations.

International tourism to Japan has been a real bright spot for ANA and Japan Airlines (JAL) in the years after the COVID-19 pandemic, offsetting weaker outbound trends. They predict that the inbound flow will continue to be the main driver for international demand, in the medium term at least.

This dynamic has influenced the airlines' network and marketing strategies, since they now carry a greater mix of overseas-originating customers.

Promising signs in the outbound market underline confidence that it will eventually provide more balance to international demand.

Challenges are present in some of JAL and ANA's major market regions - airspace restrictions are affecting routes to Europe, and the airlines are watching for any demand repercussions from geopolitical disputes.

Senior executives from ANA and JAL discussed their views on the state of international market with Aviation Week Network during the IATA annual general meeting in Delhi on 1-3-Jun-2025.