Delta Air Lines is upbeat about its business in Japan as new routes and the surging yen boost travel and help along the recovery in the industry, a top executive said yesterday.
Delta, the world’s biggest airline, is investing more than US$1 billion in its global operations through 2013, and the robust results from its Japan business underline the soundness of such investments, Delta president Edward Bastian told reporters at a Tokyo hotel.
“Our goal in Asia is to be the carrier of choice for both Asian as well as American customers,” he said. “We have seen significant improvement in our outbound travel.”
The strengthening yen, which has battered Japanese exporters, is a major blessing for Delta as it reaps the benefit of increased travel by Japanese whose spending power has jumped and are flying in droves to spots like Guam, Hawaii and Saipan.
Delta saw its Asian revenue climb 30 percent year-on-year in the latest quarter, largely because of the yen’s rise, Bastian said, adding that results in July and August had also been strong.
The dollar recently hit a 15-year low against the yen and continues to trade near the ¥84 level.
Bastian said Delta sees Japan and Asia as key parts of its global business, and its recent strong financial performance puts it in a good position to grow in the region.
Delta, the leading US carrier to Asia in departures and seats, has added 12 new nonstop trans-Pacific routes since 2008, according to the Atlanta-based carrier.
Among Delta’s planned Japan routes are Nagoya-Honolulu, Narita-Palau and two flights from Haneda, to Detroit and Los Angeles.
Haneda has long served as a domestic airport, but is adding international flights, starting next month. Delta is among three US carriers that secured Haneda landing slots.
Bastian said Delta still sees Narita, the main Tokyo international airport, as the regional hub, and foresees no capacity reductions there, despite competition from Seoul and other regional airports, as well as Haneda’s potential.
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