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Japan’s ANA plans to raise USD3.2 billion in share issue
Japan’s ANA Holdings plans a share issue to raise billions to shore up its finances.
The airline will have a share placement aiming to raise 332.1 billion yen ($3.2 billion).
The airline’s share price has sunk more than 30% this year and it is bracing for a record annual loss.
ANA said it will use funds to repay long-term debt and buy Boeing 787 aircraft to ‘optimise supply to demand’ for the travel recovery.
ANA is forecasting a net loss of $4.8 billion for the fiscal year which ends in March 2021.
It recently outlined a restructuring plan which will reduce costs by about 400 billion yen.
It will retire planes and cancel orders to reduce its overall fleet size and temporarily transfer hundreds of employees to other companies.
"We will accelerate our business reform while keeping our financial health," said Kimihiro Nakahori, ANA Director of Finance.
Last week, main rival Japan Airlines said it hopes to raise up to $1.75 billion in a share sale.
Both airlines may still seek government loans which led to one government advisor to suggest ANA and JAL should merge businesses.
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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