Japan Airlines Co. said Friday it will likely be able to raise ¥500 billion ($4.7 billion) from lenders to secure its financial standing as it navigates a severe downturn in demand for travel due to the coronavirus pandemic.
"We are looking to secure ¥500 billion," JAL President Yuji Akasaka told a general shareholders meeting, adding that the airline has already borrowed ¥200 billion from financial institutions.
The carrier posted a group net loss of ¥22.9 billion for the January-March period, its first quarterly loss since it relisted in 2012 following its bankruptcy filing in 2010.
Like other airlines, JAL has significantly reduced domestic and international flights due to the pandemic. It expects to see a recovery in passenger numbers on domestic flights starting this month.
On Friday, the government lifted its final restrictions on inter-prefecture travel, saying it believes the spread of the virus is now in check.
JAL has said its more than 90 percent reduction in outbound international flights will continue.
"We will change our business structure dependent on business-related demand into one that can enhance profitability in line with tourism demand," Akasaka told shareholders.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.
Your news needs your support
Since the early stages of the COVID-19 crisis, The Japan Times has been providing free access to crucial news on the impact of the novel coronavirus as well as practical information about how to cope with the pandemic. Please consider subscribing today so we can continue offering you up-to-date, in-depth news about Japan.