JAL looking to raise $2.7 bil. amid business slump

Japan Airlines is trying to raise funds to prepare itself for the post-pandemic years. JAL is hoping to drum up 300 billion yen, or more than 2.7 billion dollars.

Sources say the carrier is in talks with three Japanese megabanks and the government-backed Development Bank of Japan for 1.8 billion dollars. The money would come in the form of subordinated loans.

Some of it would effectively help improve JAL's balance sheet, as some of the loans would be categorized as the borrower's capital.

The rest is likely to be raised through issuing corporate bonds.

The Japan Airlines group posted a net loss of 2.6 billion dollars in the year through March. The financing plan is aimed at bolstering the carrier's financial base amid sluggish demand for air travel.

The airline is expected to use the money to invest in promising fields such as budget-carrier operations and to implement low-carbon solutions.