TOKYO- Japan Airlines (JL) and All Nippon Airways (ANA) report soaring profits from heightened business travel amid US tariffs imposed by President Donald Trump. Corporate executives fly more to negotiate deals and shift production, lifting premium seat demand on transpacific routes.
Outbound trips from Tokyo’s Narita International Airport (NRT) and Haneda Airport (HND) to US hubs like Chicago O’Hare International Airport (ORD) and Los Angeles International Airport (LAX) jumped sharply.
According to SCMP, this trend stems from April’s tariff announcements, reshaping global trade and spurring in person meetings.
Photo: Clément Alloing
ANA and Japan Airlines Profits
US tariffs expanded in 2025, hitting 19% on Indonesia and raising costs for Japan-linked chains in China and Vietnam.
A July US-Japan framework deal eased some auto impacts but added 5-10% to aircraft fares via aluminum duties. Retaliatory measures weakened the yen to ¥150/USD, curbing leisure outbound but sustaining business flows.
Japan National Tourism Organisation reports total overseas trips up 14% year to date, with the outbound market projected at USD 8.514 billion in 2025 and USD 90.1 billion by 2035 at 26.6% CAGR.
US departures reached 141,791 in June. Bloomberg Intelligence’s Eric Zhu notes mid teens growth in business and first class bookings, with demand at 75% of 2019 by May.
JPMorgan’s Ryota Himeno attributes surges to supply chain audits. Manufacturers favor in-person customer talks to offset duties, especially amid Q2 US GDP growth of 3% after contraction.
Photo: Clément Alloing
Airlines Financial Breakthroughs
Japan Airlines (JL) reported Q1 FY2025 revenue up 11% to 471 billion yen (US$3.18 billion), with a full-year forecast at 1.93 trillion yen revenue and 170 billion yen EBIT.
Transpacific premium demand led gains, though Q2 results pending release confirm analyst projections of 72.1 billion yen operating profit, the highest since 2018.
All Nippon Airways (ANA) achieved record international profits in Q1, with North American and European routes driving passenger revenue up 5% in premium cabins.
First half operating income hit 62% of full year targets, exceeding expectations due to strong yields. Cargo dipped 7% on transpacific routes from trade slowdowns, but business travel offsets this. NH forecasts FY2025 revenue at 2.37 trillion yen, operating income at 185 billion yen.
Nomura’s Masaharu Hirokane credits North America strength. Japan Airlines leverages transpacific focus and yield management, while All Nippon Airways balances broader routes but contends with European softness and cargo reliance, per Himeno.
Outbound business demand for JL rose 121% year over year, with over 15% of international revenue at peak yields.
Both carriers anticipate full-year outlook hikes, with NH stating sustained international growth.
Photo: By Toshi Aoki – JP Spotters – Gallery page http://www.airliners.net/photo/All-Nippon-Airways/Boeing-787-8-Dreamliner/2221414/LPhoto http://cdn-www.airliners.net/aviation-photos/photos/4/1/4/2221414.jpg, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=27376402
Future Outlook
Tariffs accelerate Japan Inc.’s US footprint changes. Bloomberg tallies 54 Topix firms announcing moves in July-August 2025. Toyota plans 20% US capacity boost by Q4 to dodge 25% auto parts duties.
Honda shifts hybrid Civic production stateside, Subaru views US expansion as inevitable, and tire makers Bridgestone and Toyo Tire enlarge plants for cost cuts and market access.
A July 23 US-Japan auto trade pact sets 15% tariffs on Japanese imports, spurring localized manufacturing. Subaru shifts some models from the US to Japan to avoid duties, while Toyota reorganizes North American ops into three pillars and seven regions for EV agility.
Japan Airlines (JL) resumed Narita–Chicago O’Hare (NRT–ORD) on May 31, 2025, adding daily service to Haneda–Chicago.
It upgraded Haneda–Los Angeles (HND–LAX) with larger business sections in June and launched daily Haneda–San Francisco in August. Narita–San Diego (NRT–SAN) went daily on March 30, up from four weekly.
All Nippon Airways (NH) launched AirJapan Asia routes but cut European frequencies by 10% due to weak demand. Both plan capacity expansions through year-end, per Zhu. “US tariffs prompt production shifts, fueling business demand to North America and Europe,” JL states.
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