IATA: Weak yen a 'double edged sword' for Japanese airline industry

IATA Economics confirmed (01-May-2026) the depreciation of the Japanese yen to "its lowest level since the 1970s" has contributed to growth in international inbound passenger traffic. International travel to Japan increased 47.1% year-on-year in 2024 and 15.8% in 2025. IATA noted that demand from short and medium haul markets, such as South Korea, Southeast Asia and India, has been "especially robust". The weaker yen has conversely made international travel more expensive for Japanese residents. The number of international trips by Japanese travellers was yet to return to pre-pandemic levels in 2025 and is "comparable to levels seen in the mid‑1990s". IATA commented: "The weak JPY has been a double edged sword for Japan's airline industry: boosting inbound travel and passenger volumes, while suppressing outbound demand and raising USD‑denominated costs to JPY-based airlines". [more - original PR]