ISTANBUL—Japan Airlines (JAL) is studying its options for the eventual replacement of its Boeing 767 fleet and the remainder of its 737s.

The carrier is undertaking feasibility studies on what aircraft it would need for these replacement needs, said Ross Leggett, JAL managing executive officer and SVP for route marketing. This internal process will likely continue for another 6-12 months before an actual order will be considered, Leggett told Aviation Daily during the IATA annual general meeting on June 5.

JAL currently has 42 Boeing 737-800s and 27 767s in its fleet, according to Aviation Week Network’s Fleet Discovery. JAL already has 21 737 MAXs on order to begin the 737 replacement.

The carrier will consider replacements for the 767s and the remainder of the 737s at the same time, Leggett said. It will want to start taking deliveries of any new orders within 10 years.

JAL is open to all options, Leggett said. Its orders are likely to include multiple types and could even include more than one manufacturer.

Meanwhile, JAL is preparing for the arrival of its first Airbus A350-1000s. The initial aircraft is due in October and will be deployed on JAL’s New York route in the carrier’s winter schedule, Leggett said.

The second aircraft will arrive about a month later and will also be used on the New York route to allow daily A350-1000 services. The third aircraft is due to arrive soon after, although its deployment has yet to be announced. The A350-1000s are generally replacing Boeing 777s.

Japan’s international outbound demand is still relatively weak, Leggett said. Outbound demand is at about 50% of pre-pandemic levels, with business demand at 60% and leisure at 40%.

The lower leisure outbound demand is partly due to factors such as a weak yen and inflation, which mean that overseas travel and accommodation are more expensive, Leggett said. There is also still a mindset of hesitancy to travel overseas after the pandemic.

However, JAL is starting to see some improvement on the horizon, Leggett said. Bookings for upcoming summer holiday periods are looking good, and another promising sign is that passport applications in Japan are increasing.

The market between Japan and mainland China is still depressed. Japanese travelers to China still need to apply for visas in advance, which can take anywhere up to 2-3 weeks. This is not conducive to spontaneous business travel, Leggett noted. Additionally, Japan is not included in the list of countries where Chinese group tours can travel. The Chinese and Japanese governments are discussing the visa issue, Leggett said. There is hope for some relief on this front in the near future. JAL operates 53 weekly frequencies to China, versus 98 before the pandemic.