High fuel costs forcing ANA, JAL to cancel some air routes

TOKYO, July 17 Kyodo - All Nippon Airways Co. and Japan Airlines Corp. are seeking to suspend operations on some unprofitable domestic and international air routes this fall in the face of persistent rises in fuel prices, sources close to the matter said Wednesday.

ANA is mainly reviewing flights to and from Kansai International Airport near
Osaka with low passenger levels, including flights between the airport and
Guam, they said.

JAL is considering suspending three domestic air routes in and out of Fukushima
airport in northeastern Japan, as well as three international routes including
those between the Kansai airport and London, they said.

Airlines have been coping with high fuel prices by raising airfares. But given
the increasing risk of hurting customer demand, the two airlines are trying to
reduce unprofitable operations and focus on those with higher profitability,
they added.

In addition to high fuel costs, the two major airlines have been facing tougher
competition from discount air carriers following deregulation in the air
transport industry, they said.
ANA President Mineo Yamamoto admitted the move by his company at a news
conference Wednesday, although declining to give details.
He said there is a need to cut unprofitable flights so as to survive the record
breaking fuel prices, which have nearly doubled in the past year.
Fuel prices ''have passed the level at which they can be absorbed through
corporate efforts,'' Yamamoto said.
''There are some routes on which we have no way of making profits, and we need
to cut them in the latter half of this fiscal year,'' he said, adding that ANA
hopes people in the affected areas will understand the move.
==Kyodo