June 19, 2020 / 6:09 AM / 2 months ago

Japan Airlines to raise up to $4.7 billion to weather coronavirus slump

TOKYO (Reuters) - Japan Airlines Co (JAL) (9201.T) plans to raise as much as 500 billion yen (£3.76 billion) to bolster its finances amid a slump in air travel demand caused by the coronavirus outbreak, the company’s president told shareholders on Friday.

Yuji Akasaka told attendees at the company’s annual shareholder meeting that JAL has already raised around 200 billion yen from lenders, a spokesman for the airline said.

JAL and local rival ANA Holdings (9202.T), which has asked lenders for 400 billion yen, have been forced to ground many of their aircraft since bookings collapsed.

Japan’s government has said it would provide financial help as part of an economic stimulus package to help the carriers weather a downturn, which the Scheduled Airlines Association of Japan estimates could cost its members as much as 2 trillion yen in lost revenue over the next year.

Reporting by Tim Kelly; Editing by Aditya Soni

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