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Japan Airlines plans share sale to raise USD1.6 billion
Japan Airlines will sell shares in an effort to raise at least 168 billion yen ($1.62 billion) to shore up its business.
Like rival ANA Holdings, JAL said it will likely post its biggest ever loss for the financial year which ends in March 2021.
It could post a net annual loss of up to 270 billion yen.
"We intend to use the net proceeds from the issuance of new shares to restructure the activities of Japan Airlines Group in the post-Covid-19 era," the company said in a regulatory disclosure.
It has already laid out how the funds will be used.
It plans to use about 80 billion yen to escalate carbon emissions cuts, at least 15 billion yen for restructuring, a small amount for ‘social needs’ and the remainder to pay off debt.
It plans to sell up to 91 million new shares.
The airline said it may also raise more funds through loans.
"We will consider various options. We will do so in a flexible manner," a JAL spokesperson told reporters.
"We’ll take action to improve our financial health quickly and head for growth after the Covid epidemic," said Yuichiro Kito, JAL’s finance department General Manager.
Written by Ray Montgomery, Asia Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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