Washington’s support for a stronger yen is raising questions for airlines benefiting from record travel demand to Japan, where a weak currency has helped make trips more affordable and encouraged carriers to add capacity. The issue comes as U.S. airlines expand flying to Japan and plan further network growth for 2027, while markets watch for policy moves from Tokyo that could lift the yen further.
U.S. Treasury Secretary Scott Bessent has signalled support for a firmer Japanese currency, reinforcing expectations that the Bank of Japan could tighten policy. That stance follows a late-July joint intervention in which U.S. and Japanese authorities acted together in the foreign-exchange market. The yen has already strengthened from its recent lows, and that shift is feeding into airline planning at a time when Japan remains a standout long-haul destination.
United Airlines has described Japan demand as strong, with the exchange rate helping keep travel affordable for U.S. passengers. Carriers have responded by investing heavily in the market, betting that traffic will remain resilient even if a stronger yen trims some of the price advantage that has supported the boom.