TOKYO – Japan Airlines (JAL) said today that it plans to raise some ¥300 billion (RM11.32 billion) in funds as it works to weather the continuing impact of the pandemic on its finances.
The funds will be raised through financing measures, including subordinated loans and bonds, the company said in a statement, adding more details will be announced tomorrow.
“It’s not an urgent or imminent measure,” a company spokesman said.
“It’s a pre-emptive measure to solidify our financial base,” he told AFP.
The move comes after the airline raised some ¥180 billion in a new share sale late last year.
JAL logged a net loss of ¥286.7 billion for the year through March, its first full-year result in the red since it was relisted on the Tokyo Stock Exchange in 2012.
But, it trimmed losses by nearly half in the April-June period thanks to cost-cutting efforts.
JAL has concluded that it needs an additional cash buffer as the pandemic has lasted longer than expected, the Nikkei daily said.
Airlines have been among the sectors hit hardest by the Covid-19, with demand stagnant at home and overseas.
Japan’s borders, which are currently closed to tourists and domestic travel, has been stifled by successive waves of infections and resulting virus states of emergency.
Today, the government is set to extend the state of emergency for Tokyo and other areas until September 30.
JAL shares closed down 1.61% to ¥2,432 following the company’s statement. – AFP, September 9, 2021
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