While uncertainty remains over when — or even if — travel demand will make a full recovery from the COVID-19 pandemic, Japan's two major airlines are positioning themselves to take advantage of any upturn with a punt on low-cost services.

With leisure demand expected to recover much faster than business travel, ANA Holdings Inc. and Japan Airlines Co. are both strengthening ties with low-cost carriers (LCCs).

But the moves by the two airlines, which have established themselves as full-service carriers, could be a double-edged sword, aviation experts say.