Japan Airlines Corp. said Tuesday it has signed a loan agreement with two government-backed lenders and three major banks in a bid to return to profitability.
The five lenders are the Development Bank of Japan, Japan Bank for International Cooperation, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp. and Mizuho Corporate Bank.
The government plans to guarantee about 80 percent of the repayment of an emergency loan to be extended to JAL by the two government-backed lenders.
Hit by a slump in demand for travel and cargo at home and abroad amid the global recession, JAL incurred a group net loss of ¥63.19 billion in the year that ended March 31 and is expected to remain in the red in the current business year.