Kathmandu, Oct. 3 -- Nepal Airlines is seeing strong passenger demand for its Japan flights with the festival and tourist seasons underway.

The national flag carrier had begun its Kathmandu-Osaka service in August with an upbeat outlook, but disappointment set in with passenger occupancy remaining below 30 percent on all its flights in September. The start of the festive season has brought cheer to the airline with Nepalis rushing home for the holidays.

"The inbound flights are almost full. But there is only one-way traffic as outbound is still below forecasts for the month of October," said Ganesh Bahadur Chand, spokesperson for the airline. He added that at least five flights in October were sold out.

The traditional Dashain travel r...