The airline launched the route to Tokyo’s Haneda Airport in June 2023, but with travel demand from Japan up to 35 per cent lower than pre-pandemic levels, Virgin says the route is now “commercially unsustainable”.
Virgin flagged the weakness in the Japanese currency as a reason for lower than expected travel demand from Japan.
The route will cease from February 24, 2025.
“Withdrawing from Cairns-Tokyo services was a tough decision, but unfortunately the recovery of inbound visitors from Japan is significantly below forecast and therefore operating our own service to Tokyo is no longer commercially viable,” said Virgin Australia’s chief transformation and strategy officer, Alistair Hartley.
“Our international network continues to be a central part of our strategy.
“We know this is disappointing news and we are sorry for the impact this decision will have on those guests booked to travel with us from 24 February 2025,” he said.
Around 2,000 customers are booked to fly on Virgin services from February 24. Customers who booked through Virgin’s website will be contacted in the next 24 hours to arrange a refund.
The route was supported by the Queensland Government’s $200 million post-COVID aviation fund, which aimed to grow international air links to Queensland.
When it was first announced, the route was estimated to be worth up to $69.5 million to Queensland in its first year.
“I want to acknowledge and thank the Queensland Government for its partnership in launching our Tokyo services and its ongoing support for Virgin Australia as one of the largest carriers of tourists to the Sunshine state,” said Virgin Australia’s Hartley.
The cancellation of the route by Virgin is a blow to Cairns, which only has a handful of international destinations directly connected to the tropical destination.
The loss of Virgin’s services may also impact the attractiveness of Cairns as a business events destination for Japanese groups, due to lower connectivity, although Jetstar also flies between Cairns and Tokyo, as well as offering services between Cairns and Osaka.
The aircraft used on Virgin’s Cairns-Tokyo flights will be reabsorbed into the airline’s domestic fleet.
