Domestic airlines are expecting a decline in sales of 500 billion yen from February to May due to a drop in demand caused by the spread of the new coronavirus. The government plans to provide financial support to airlines, as they try to lower costs by reducing executive pay.
The Scheduled Airlines Association of Japan, which comprises 19 domestic airlines, examined a forecast as of March 30. Previously, airlines had expected a decline of about 300 billion yen between February and April and more than about 400 billion yen between February and May.
According to the Land, Infrastructure, Transport and Tourism Ministry's statistics, the number of international round trip flights departing from and arriving in Japan between March 29 and April 4, including those operated by overseas airlines, was 456, down 92% from the same period last year. Japan Airlines and All Nippon Airways have decided to reduce their number of international flights by nearly 90% until late April.
Japan Airlines' executives have decided to voluntarily return 10% of their pay amid a rapidly deteriorating business environment. The measure will be implemented from April to June for 36 executive officers.
ANA has also decided to reduce executive and managerial salaries from April and temporarily suspend about 6,400 flight attendants.
The government is also considering extending grace periods for collecting airport fees from airlines at government-managed airports for about six months, and providing loans through the Development Bank of Japan Inc.
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