Despite a weak yen, Japanese carrier ANA has maintained the load factor on Thailand-Japan routes at the same robust level as 2019, with more of its passengers being Thai tourists as well as long-haul travellers transiting in Japan.
Daishi Yoshihara, general manager of Thailand, said Thailand has been one of the airline's strongest routes in Asia-Pacific and Southeast Asia following the pandemic, along with Singapore and Shanghai.
Mr Yoshihara said the weak yen encouraged more Thais and other foreign tourists to visit Japan, but the situation doesn't favour Japan's outbound market as exchange rates were more costly for Japanese nationals.
The airline is now operating three daily flights using Boeing 787 series aircraft between Bangkok and Tokyo's two airports -- Narita and Haneda -- compared with five daily flights prior to the pandemic.
The share of Thai passengers and foreign passengers on these routes had risen to over 20% and 40%, respectively, higher than the levels recorded before the pandemic, while the portion of Japanese passengers had dropped.
Many foreigners, such as those from the US, chose to transit in Japan when visiting Southeast Asia and Thailand.
Mr Yoshihara said the airline was still able to maintain a strong load factor at over 80-85%, which is equivalent to the level before the pandemic.
Amid a weak yen and high fuel prices, he said the airline was able to manage the fuel expense, which is the major airline cost, through hedging contracts.
Moreover, the trend of airfares is normalising, but they are still not as low as the level seen in 2019.
Even though the airline wants to resume five daily flights to Bangkok, he said the situation is uncertain as airlines worldwide are facing fleet shortages, slow aircraft deliveries and labour shortages at airports.
Given fiercer competition among low-cost carriers increasing flights to Japan, Mr Yoshihara said he is not worried since ANA mainly targets business travellers or passengers who opt for full-service airlines -- a totally different customer segment.
As the government wants to establish Thailand as an aviation hub by 2030, Mr Yoshihara said it's a good policy as the country has potential to be the centre of Southeast Asia due to its location.
He hoped the authorities would collaborate more with foreign airlines as well, while subsidy schemes should be provided to attract airlines to newer cities.
ANA does not plan to open new routes to other cities besides Bangkok at the moment as those destinations chiefly target tourists not business travellers, who are the airline's major customers.
These cities would be more suitable for low-cost carriers under ANA Holdings, which are Peach and Air Japan.
ANA recently celebrated its 35th anniversary of operating flights between Bangkok and Tokyo. Bangkok was ANA's first destination in Southeast Asia.
