Japan considers cutting jet fuel tax

Japan's government is considering cutting its jet fuel tax to support airlines suffering from a sharp fall in passenger demand because of the impact of the Covid-19 pandemic.

The country's ministry of land, infrastructure, transport and tourism (MLIT) is considering reducing the aviation tax, currently at ¥18,000/kl ($27/bl) for the main domestic airlines. The size of the cut is still being discussed.

Japan's passenger numbers on international flights in September slumped by 96.7pc from a year earlier, while passengers on domestic flights dropped by 64pc, according to preliminary data released this week by the MLIT.

Japan's All Nippon Airways forecasts a ¥510bn ($4.9bn) loss for the current 2020-21 fiscal year ending 31 March, while Japan Air Line predicts a ¥240bn-270bn loss for the same period.

The Japanese government has already cut landing fees by 45pc from August to February 2021, while aircraft parking charges have also been reduced.

By Maiko Nakashima