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Japanese low-cost carrier ANA Holdings is putting its low-cost airline Peach at the center of a wider multi-brand push in order to grow international capacity out of Tokyo Narita International Airport (NRT) in 2029. Over the next five years, the group plans a record investment of around $13 billion in order to extensively modernize its fleet and engage in large-scale digital transformation efforts.
The purpose of this is to target record operating income by the time the end of the decade rolls around. Peach’s objectives are clear, with the carrier appearing to be dead-set on expanding available seat miles by around 30%, tilting harder towards major international routes, and introducing the Airbus A321XLR from fiscal year 2028 onwards, giving All Nippon Airways a cost-efficient way to grow without diluting the airline’s mainline brand.
A Low-Cost Carrier That Extends The Airline’s Reach
Peach Aviation is ANA Holdings’ low-cost subsidiary, which is one of the best-known budget operators in Japan. The airline’s operating code is MM. Originally founded in 2011 and electing to launch services in March 2012, the airline built a network out of Kansai International Airport (KIX), while also developing other bases like Tokyo Narita. In late 2024, ANA Holdings moved to take complete control of the company, tightening its strategic control over the airline’s fleet, network, and overall brand positioning, according to reports published by ch-aviation.
From an operational perspective, Peach runs a single-aisle Airbus fleet of A320 family aircraft, including some newer neo variants and longer-range A321s. This allows the carrier to sell a simplified product built around low fares, paid add-ons, and point-to-point service. This model makes it a natural platform for leisure demand across Japan and elements of East Asia. As a result, the airline has elected to target higher growth through this specific subsidiary.
ANA Has A Growth-Oriented Pathway Forward For Peach
Peach’s growth plan is primarily framed in terms of capacity. The carrier wants to grow Peach’s business by around 30%, with new international flights accounting for the majority of the increase there. The ANA Group’s 2026-2028 strategy explicitly targets inbound travel and leisure demand by increasing the ratio of international routes and concentrating growth at KIX. This airport is cheaper to operate out of and much less slot-constrained than Tokyo megahubs.
The carrier can also do this by increasing aircraft utilization, upgauging flights, or pushing for tighter turn times. The airline’s fleet is also an enabler. Peach is slated to add around 10 Airbus A321neo and A321XLR jets to its mix, with the latter entering service starting in fiscal year 2028, bringing a longer-range, fuel-efficient narrowbody workhorse into its operational mix.
This opens up mid-range opportunities beyond today’s typical North Asia pattern, with routes that are too thin for widebodies, but too far for the standard short-haul aircraft. Alongside network expansion, Peach also aims to lift preference and yields by improving operational and service quality across the board. These are all necessary for the airline to fully establish itself as a reliable option in low-cost markets where competition is strong.
ANA Pulls The Plug: AirJapan Grounded After Less Than 2 Years
ANA will continue forward with a dual-brand strategy that includes low-cost subsidiary Peach.
What Makes A Low-Cost Carrier An Asset For ANA?
For ANA, an in-house LCC is a strategic hedge and a growth engine at the exact same time. It allows the airline to comfortably segment the market, with the airline protecting a full-service, higher-yield segment of the market with its mainline carrier, while Peach stimulates demand among price-sensitive travelers who might not otherwise choose to fly.
Second, Peach is designed to capture Japan’s inbound leisure wave, something the carrier explicitly links to broadening the Group’s overall customer base. The fact that the airline can comfortably do so from cost-efficient airports like Kansai is even more appealing. Third, an LCC gives ANA a way to test out new kinds of routes, especially using an aircraft like the A321XLR.
If these routes ultimately mature, the group can decide whether they belong under Peach of the mainline. Lastly, sharing ownership, procurement, and fleet planning creates synergies without forcing one brand to comfortably fit every single mission.
