09 June 2020, Tuesday 12:52:47

ANA to resume round trips to Bangkok

Japan's ANA to resume round trips to Bangkok, increase flights to Jakarta in July

Japan's top airline All Nippon Airways said on June 9 it will resume a roundtrip passenger flight from Haneda in Tokyo to Bangkok and increase flights to Jakarta in July, further supporting a recovery in ailing regional jet fuel demand.

ANA's latest move comes as Thailand has not extended its entry restrictions from Japan beyond June 30, a company spokesman said.
Starting in July, ANA will resume a normal operation of seven round trips a week from Handeda to Bangkok, a route which it currently operates only a cargo flight from the Tokyo airport and a passenger return flight from the Thai capital, the spokesman said.

Japan intends to consider easing restrictions for Thailand, Vietnam, Australia and New Zealand to allow business people to enter the country, marking its first easing measures since the coronavirus pandemic, according to Japanese media reports.

Japan's Minister of Foreign Affairs Toshimitsu Motegi recently agreed with Vietnamese, New Zealander and Australian counterparts to resume mutual visits by necessary personnel, while taking appropriate infection control measures.

ANA also plans to add two more weekly passenger flights from Narita outside of Tokyo to Jakarta in July to a total of eight flights a week over two services, compared with six flights in June.

ANA now sees its international flight cancellation rate at 90% of its fiscal 2020-2021 (April-March ) in July, compared with 91% in June and 93% in May.

Price recovery

The gradual resumption in international flights led to a significant rebound in the outright FOB Singapore jet fuel/kerosene price, which rose by $29.81/b, or 228.25%, from its trough of $13.06/b on April 22 to $42.87/b at the Asian close June 8.

Similarly, the derivatives market also firmed up with the front month June/July Singapore jet fuel/kerosene swap spread rising from a record low of minus $3.90/b on April 30 to minus 95 cents/b at the Asian close on June 8.

Industry sources noted that jet demand will definitely trend higher as more regional airlines in Asia start taking to the skies.

"[Domestic and international] flights are gradually taking off, and that is going to provide a cushion for jet fuel prices," an industry source said.

"Demand is improving step by step. Japan is opening the flight window for [other] countries, etc. so demand should be recovered," another source added.

Further optimism was also evident in the Q3/Q4 quarterly Singapore jet fuel spread -- an indicator of near-term sentiment -- which narrowed 40 cents/b day on day to minus $2.42/b at the Asian close on June 8.

ANA to resume round trips to Bangkok

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