Peach leads the way in Japanese LCC rebound

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Japanese LCC Peach is playing a larger role in the domestic market than before the pandemic, as its capacity has climbed back to pre-COVD levels – and beyond – faster than the other Japanese LCCs or full-service carriers.

The dominant LCCs in Japan are both part of legacy airline groups – Peach is part of All Nippon Airways Group, and Jetstar Japan is in the Japan Airlines stable. So the quicker recovery for Peach partly reflects a strategic decision that the LCCs are better suited to the current environment than FSCs.

The ANA and JAL groups were already increasing their investment in LCCs before the pandemic. But the COVID-19 crisis is causing both to further boost their focus on the LCC subsidiaries, as the parent companies believe market dynamics could prove an advantage to this business model in the post-pandemic phase.

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