Airlines face problems due to drop in demand for flights to Japan

Airlines face problems due to drop in demand for flights to Japan

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Asia Bizz: Airlines in the U.S are struggling with the drop in demand for flights flying to Japan due to natural calamities plagued by the Asian country. Travelers from the U.S, find Japan as a gateway to travel to Asia.

Delta Airlines Inc. said that they will reduce the amount of flights to Japan by around 20% as the demand is low. Delta Airlines also said that this will cost them around 250 to 450 millions losses in profit. American Airlines on the other hand, who already had some plans with Japan Airlines in the form of a joint venture, will push that ahead to next month. United and Continental Airlines also announced that the international flights would also slow down to Japan. Even Asia’s Singapore Airlines postponed the launch of it’s A380 Airbus services from Tokyo to Los Angeles, in view of the current situation.

Many airlines are debating whether the increase in the ticket prices could solve a bit of the problem, but may on the other hand say that by increasing the fare, it could back fire for the airlines. Several flights are connected to other Asian countries via Japan, and the Japanese nuclear crisis will affect travel to other countries, since the airlines bookings have fallen drastically after the unfortunate disasters in Japan