Photo/Illutration Kansai International Airport in Osaka Prefecture (Toyokazu Kosugi)

Kansai Airports, which operates Kansai International Airport, Osaka Airport and Kobe Airport, on Dec. 11 posted strong financial results for the first half of fiscal 2024 driven by increased foreign tourism.

Operating profit for the period soared to 30.6 billion yen ($201 million), about 2.4 times higher than the same period last year, while net profit jumped to 16.9 billion yen, a 3.3-fold increase.

These results mark the company’s second-strongest performance since Kansai Airports began overseeing airports’ operations in April 2016, trailing only the first half of fiscal 2019.

Revenue surged by 38 percent to 118 billion yen.

The strong performance was credited to the surge in foreign tourists. The total number of passengers across the three airports rose by 18 percent from the same period last year to 24.7 million.

In particular, Kansai International Airport saw a 44 percent increase in overseas visitors to 9.47 million, the highest-ever figure for a first half since the airport’s opening in 1994.

The number of scheduled international passenger flights for the winter season of fiscal 2024 has recovered to 96 percent of levels seen in fiscal 2019's winter season prior to the COVID-19 pandemic.

However, there are concerns. Benoit Rulleau, co-chief executive officer of Kansai Airports, pointed to the “geopolitical situation in neighboring Asian countries.”

South Korea, a key market for Kansai International Airport, has seen political turmoil, with police investigating President Yoon Suk-yeol over his declaration of emergency martial law on Dec. 3.

From April to November, South Korea was the top source of global visitors to Kansai International Airport.

If South Korean tourists cut back on travel, the impact could be significant.

In 2019, when relations between Japan and South Korea deteriorated, both the number of flights and passenger traffic saw a sharp decline.

Yoshiyuki Yamaya, CEO of Kansai Airports, said at a news conference on Dec. 11, “There has been no significant impact so far, but we will continue to keep closely monitoring how things develop.”

As for China, the Japanese government is planning to ease its visa requirements for Chinese visitors.

However, Yamaya said, “Some say China’s domestic economy is quite bad,” and noted that the potential impact is uncertain.

“Currently, (scheduled flights between Japan and China) have recovered to about 76 percent of pre-pandemic levels. We hope to see that return to 100 percent,” he added.

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