AMERICAN AIRLINES TO SUSPEND TWO DAILY FLIGHTS TO JAPAN

From Kyodo News

American Airlines said Wednesday it will suspend a total of two daily flights between the United States and Japan from April 7 through 25 due to reduced demand following the massive earthquake and tsunami disaster in northeastern Japan.

American will suspend a service between New York and Tokyo's Haneda airport launched in February, and one of the two daily flights between Dallas-Fort Worth in Texas and Narita airport near Tokyo. The two services are scheduled to be suspended after flights from Japan on April 6 and to resume with flights departing the United States on April 26.

If you needed any idea of how the earthquake has slowed down economic activity in Japan please look no further.

While demand is low and has depressed prices do not forget that the price of oil has risen to over $100 USD per barrel and has force the price of jet fuel above $3 USD per gallon. When AA made this announcement months ago the price of oil was in the 60-75 USD range now its $100 USD and the O&D traffic for the routes have plummeted since the earthquake. It's going to be interesting to watch what happens to flights in and out of Narita as it seems those are still viable from connecting traffic.