Japan's JAL considers raising up to 2.9 bln USD in capital
Source: Xinhua | 2020-10-27
Japan Airlines Co. (JAL) is mulling raising up to 300 billion yen (2.9 billion U.S. dollars) in capital as the COVID-19 pandemic continues to discourage air travel, local media reported on Monday.
JAL could take out subordinated loans, which would allow the airline to count part of the debt as capital, sources told Kyodo News.
According to the sources, the airline is expected to report an operating loss of around 85 billion yen (810.7 million U.S. dollars) for the three months through September, which would be an improvement from its operating loss of 131.01 billion yen (1.25 billion U.S. dollars) in the previous quarter.
JAL is scheduled to report its first-half earnings on Friday. The airline has so far withheld its earnings forecast for the business year through March, citing uncertainty caused by the COVID-19 outbreak.
The airline's data showed that the number of international passengers in July and August slumped by 97.5 percent and 96.9 percent year-on-year respectively, while that of domestic passengers fell by 64.7 percent and 71.7 percent respectively.
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