Japan Airlines to raise as much as $1.6 billion from share sale

Japan Airlines Co. will raise as much as 168 billion yen ($1.6 billion) via an overseas and domestic share sale, using the proceeds to reduce debt and bolster its finances.

The carrier, which is seeking to weather the coronavirus pandemic without making any major job cuts, will offer the shares at a 3% to 6% discount, it said in a statement Friday.

The global airline industry is set to see revenue slashed by half this year, with carriers cutting jobs and securing funding to ride out the crisis. Japan Airlines and ANA Holdings Inc., Japan’s largest carrier, are suffering from a steep drop in domestic and international passenger traffic. Overseas visitors to Japan fell 99.4% in September from a year earlier as the country largely kept its borders shut.

“A prompt recovery of our impaired financial structure is an urgent issue,” Japan Airlines said in the statement. The carrier will use the money to restructure its group’s business and reduce interest-bearing liabilities, it said.

Separately, Japan Airlines said it is securing 100 billion yen in untapped credit, bringing its total untapped commitment line to 300 billion yen.