All Nippon Airways Co. said Tuesday it will increase its domestic flights next month, potentially resuming about 90 percent of its coronavirus-hit services, as it expects a recovery in demand due to summer holidays and a tourism-boosting subsidy campaign.

Ahead of the annual rush of travelers during Japan's "Bon" summer holidays, ANA will reopen 22 domestic routes connecting Hokkaido and Okinawa to other areas. Regional economies are gradually reopening after travel restrictions were eased.

The Japanese airline will resume flights between Kobe and Sapporo from Aug. 1 and those from Nagoya to Hakodate from Aug 7, among other services.

The announcement comes as the government begins on July 22 the Go To Travel Campaign aimed at spurring domestic tourism hit by the coronavirus. The initiative will eventually subsidize up to half a traveller's expenses, including accommodation and transport fees.

Under its business plan, ANA said out of the 24,814 domestic flights it initially planned to operate in August, 2,932 services will be suspended or reduced. It suspended 12,227 domestic flights on 109 routes in July.

As for international flights, ANA's flights linking Tokyo's Haneda airport to Taipei, Ho Chi Minh City, Washington and Paris will resume next month.

ANA said, however, that roughly 90 percent of its international services will remain suspended, the same level for this month amid the pandemic.

==Kyodo

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