NextFin news, Japan Airlines (JAL) and All Nippon Airways (ANA), Japan's two major carriers, announced significant profit increases on Sunday, September 21, 2025, driven by a surge in outbound business travel from Japan to North America and Europe. This uptick in premium travel demand is largely attributed to the impact of US tariffs imposed since 2025, which have reshaped global supply chains and trade patterns.
The US tariffs, expanded under the Trump administration, raised duties to 19% on imports from Indonesia and increased costs for Japanese-linked supply chains in China and Vietnam. These changes have compelled Japanese manufacturers to reassess and relocate production, particularly boosting investments and operations in the United States. As a result, corporate executives and business travelers are flying more frequently to negotiate deals and oversee supply chain adjustments, especially on transpacific routes.
JAL reported an 11% revenue increase in the first quarter of fiscal year 2025, reaching 471 billion yen (approximately US$3.18 billion), with a full-year revenue forecast of 1.93 trillion yen and an operating profit estimate of 170 billion yen. The airline's outbound business travel bookings rose 121% year-over-year, with corporate travel now accounting for over 15% of its international revenue. JAL has responded by resuming and expanding key routes, including daily flights between Tokyo's Narita and Chicago O'Hare airports, and upgrading aircraft on the Haneda-Los Angeles route to increase business-class capacity.
Similarly, ANA achieved record international profits in the first quarter, driven by strong demand on North American and European routes. Passenger revenue in premium cabins increased by 5%, and first-half operating income reached 62% of the full-year target. ANA forecasts full-year revenue of 2.37 trillion yen and operating income of 185 billion yen. While ANA faces some softness in European demand and a 7% decline in transpacific cargo due to trade slowdowns, robust business travel has offset these challenges.
Industry analysts, including JPMorgan's Ryota Himeno, attribute the surge in business travel to supply chain audits and production shifts by Japanese manufacturers such as Toyota, Honda, Bridgestone, and Subaru, who are expanding US operations to mitigate tariff impacts. The July 23 US-Japan auto trade pact, which introduced 15% tariffs on certain Japanese imports, has accelerated these shifts, prompting companies to localize production and increase executive travel to the US.
The Japan National Tourism Organization reported a 14% year-to-date increase in total overseas trips by Japanese residents, with outbound travel projected to reach US$8.514 billion in 2025 and grow to US$90.1 billion by 2035 at a compound annual growth rate of 26.6%. Bloomberg Intelligence noted that business and first-class bookings have recovered to 75% of 2019 levels by May 2025.
Both JAL and ANA plan to expand international capacity further through the end of 2025, capitalizing on sustained demand for premium business travel. JAL's operating profit for the second quarter is expected to reach 72.1 billion yen (US$490 million), the highest since 2018. ANA remains optimistic about continued growth despite some regional challenges.
In summary, the US tariffs have indirectly boosted Japan's aviation sector by driving a surge in outbound corporate travel. Japan Airlines and All Nippon Airways have strategically adapted their route networks and aircraft configurations to meet this demand, positioning themselves for continued profitability amid evolving global trade dynamics.
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