Formerly bankrupt Japan Airlines raises $ 2.7 billion as Covid buffer


(Bloomberg) – Japan Airlines Co. plans to raise around 300 billion yen ($ 2.7 billion) through subordinated bonds and loans to bolster its capital in case the coronavirus pandemic hurts demand for more travel long time than she had expected.

The Tokyo-based carrier said it has secured around 200 billion yen in loans from four Japanese banks and plans to sell 100 billion yen of bonds. The funding is in part a “preventative measure” to counter the long-term business impact of Covid-19, Chief Financial Officer Yuichiro Kito told reporters.

The funds will also be used to modernize its fleet by purchasing the Airbus SE A350-1000 aircraft as the flagship for international routes, JAL said.

The Japanese carrier suffered heavy losses in the fiscal year ended in March after the coronavirus outbreak crippled the global aviation industry. While JAL expects domestic tourism to rebound later this year as vaccination rates rise, the planned fundraising underscores how uncertain the travel outlook remains.

Japan Airlines, which declared bankruptcy a decade ago and is seeking to weather the coronavirus pandemic without major job cuts, is looking for cash to bolster its finances and avert another crisis.

© 2021 Bloomberg LP


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