Japan’s ANA Holdings will shutter its medium-haul low-cost brand AirJapan from end-March 2026, barely two years after it began operations. 

The parent company of All Nippon Airways on 30 October says the move is part of efforts to restructure the group’s “multi-brand strategy”, which also comprises full-service operator ANA and low-cost unit Peach. 

“This decision is aimed at maximising the entire group’s profitability and competitiveness while flexibly responding to recent changes in the business environment,” states ANA Holdings. 

Air_Japan_(JA803A)_Boeing_787-8_Dreamliner_at_Narita_International_Airport_(NRT)

Source: Mitchul Hope/Wikimedia Commons

AirJapan began operations in early 2024, operating from Tokyo Narita to Bangkok, Singapore and Seoul Incheon with a pair of Boeing 787-8s. 

Plans to expand the carrier’s network have been hampered by a lack of new aircraft and ongoing supply chain issues among ANA Holdings carriers. 

Mainline carrier ANA, for instance, is facing engine reliability issues on its 787s and Airbus A320neo-family jets, on top of delays in the delivery of new 737 Max and 777-9 aircraft. 

In its latest statement, ANA Holdings alludes to the ongoing supply chain challenges, among the reasons for the closure of AirJapan. 

It states: “To optimise the allocation of the group’s resources, ANA Group decided to suspend the AirJapan brand. Its aircraft and human resources will be consolidated into the ANA brand’s operations to expand its international business.” 

AirJapan’s operating company – also called Air Japan – will continue operating and managing flights under the ANA brand, with no changes to its existing operations.

“With this change, ANA Group will transition to a dual-brand strategy composed of the ANA and Peach brands starting in fiscal year 2026, strengthening the overall Group’s profitability and competitiveness,” states the group.

The announcement comes as ANA Holdings reports its quarterly earnings, which saw the group post an operating profit of Y60.8 billion ($395 million) for the three months ended 30 September, 22% lower year on year.

Group revenue were up 10% to Y642 billion, but was outpaced by a 15% jump in operating costs.