Posted on: Tuesday, January 8, 2002

Holiday fails to entice air travelers out of Japan

By Tim Kelly and Yuka Yamaguchi
Bloomberg News

TOKYO — Japan Airlines Co. and All Nippon Airways Co., Asia's two biggest carriers, said passenger numbers on overseas flights fell during the New Year's holiday as concerns about flying cut demand for travel.

The news correlates with the continued slump in Japanese arrivals in Hawai'i. Japan Airlines' group companies carried 15 percent fewer passengers, or 292,984 people, on international routes from Japan between Dec. 22 and Sunday compared with last year.

All Nippon said there was a 23 percent decrease to 74,541 passengers on planes operated by the parent company. Japan Air System Co., the country's third biggest carrier, posted a 7.6 percent gain in overseas travelers to 15,086 people.

The country's airlines have reduced flights to stem losses on international routes since the Sept. 11 attacks. While some airlines reported an improvement in passenger numbers, a continued slump in demand from Japanese travelers may force the country's airlines to seek further cuts.

"Although we are still feeling the effects from the terrorist attacks, compared with November, numbers are better," said Japan Airlines spokesman Yuji Fujita. The company's international passenger numbers fell 40 percent in November.

Japan Airlines relies on international travel for about 70 percent of flight sales, while All Nippon makes about two-thirds of its revenue on domestic routes.

All Nippon posted a 1.2 percent decline in passengers on domestic flights to 1.7 million, while Japan Airlines carried 3.5 percent fewer people on flights operated by group companies in Japan. Japan Air System saw passengers on domestic flights decline 1.3 percent to 912,188 with Skymark Airlines Co., Japan's first discount carrier, posting a 6.5 percent drop to 50,432 over the New Year's holiday.