Railway/air transport monthly trends (May 2026)

Research evidence excerpt

Railway/air transport monthly trends (May 2026)

17 June 2026

Mizuho Securities Equity Research Transportation / Railway

Industry Overview

Hotel supply growth slows, which is a tailwind for the supply-demand balance

Senior Analyst: Summary

Katsuhiko Suzuki In May, railway revenue rose 9.6% YoY for East Japan Railway, rose 5.2% for

+81 3 6202 8632 West Japan Railway, and fell 0.4% for Kyushu Railway. For Kyushu Railway,

katsuhiko.suzuki@mizuho-sc.com railway revenue has been down 1.8% so far in June (as of 11 June) based

on preliminary data. Central Japan Railway’s passenger volume was up 5%Analyst:

in May and down 8% so far in June (preliminary data as of 9 June). TheRintaro Fujimoto

weak preliminary figure for June was largely due to people refraining from+81 3 6202 8170

rintaro.fujimoto@mizuho-sc.com traveling due to a typhoon. We will monitor the situation going forward as YoY

comps may be starting to get tougher due to the World Expo in Osaka last

year. For international flights, passenger numbers were up 0.4% for Japan

Airlines and up 15.4% for All Nippon Airways in May. For domestic flights,

passenger numbers fell by 0.9% for Japan Airlines and rose by 4.8% for All

Nippon Airways.

We update our forecasts for the number of hotel guest rooms based on data

from Hoteres and other sources (see Figures 7–10). We now forecast YoY

growth of 1.5% (previously 2.8%) for 2026 and 2.3% (previously 1.6%) for

2027. We lower our growth estimate for 2026 and slightly up it for 2027 to

reflect construction delays caused by surging building construction costs. We

have a slower supply growth assumption than before, which will likely work as

a tailwind for the hotel supply-demand balance.

The number of new hotel guest rooms planned for development as of June