JAL Stock Price at Tokyo Exchange, July-Sept 2021
Nikkei reported on Thursday that Japan Airlines announced to finance about JPY 300 billion (about USD 3 billion) from the market. JAL, suffering from higher-than expected business setbacks by COVID-19, would aim at strengthening its financial prowse.
However, JAL secured about JPY 180 billion (USD 1.8 billion) in 2020 by public offering but the management decided to try large scale financing again.
JAL sees lower yield in its passenger traffic while it feels a stronger need for investment for new technologies including decarbonizing.
As of the end of June, JAL’s capital ratio was 42.4%, one of the highest in major airliners in the world but its cash position decreased to JPY 357 billion, dropping by JPY 50 billion in just three months.
However, JAL sees a gloomy perspective for the time being. Its domestic lines show stagnating demand due to many times of emergency situations declared by the central government while its international operations are blocked by continuing resticition of travel by many countries. As of July, JAL passengership was around 40% in domestic lines and just 10% for international traffic, compared with pre-COVID 2019.
But JAL needs to secure financing for its long-term investment; a total of 450 billion for three years from March 2022 to the same month of 2024 is planned to introduce Airbus 350-900s and beef up its low cost carrier operations.
JAL will announce its official financial plans on September 10 in Japan.
Source 日本経済新聞 JAL、3000億円程度の調達発表 コロナ禍長期化に備え
