The first capital increase since its relisting in 2012 comes as airlines have been battered by a slump in air travel due to the pandemic. JAL has a stronger financial foundation than some of its peers such as
After securing the funds by issuing 100 million shares, JAL aims to use about
JAL plans to spend some of the raised funds to replace
As the pandemic reduced air travel demand, particularly for international flights, JAL expects to post a net loss of 240 billion to
When JAL went bankrupt in 2010, it received debt waivers from financial institutions and an injection of public funds, paving the way for the airline to develop a stronger capital adequacy ratio, the gauge of financial health, than ANA.
ANA is also struggling to ride out the pandemic, expecting a record net loss of
A senior JAL official did not rule out the possibility of taking out subordinated loans, which have a lower repayment priority than other loans and can largely be treated as capital.
"We will consider various options. We will do so in a flexible manner," the official told an online press briefing.
==Kyodo
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