ANA secures $8.8bn in credit, easing cash flow concerns

Japan's ANA Holdings said Tuesday that it had secured 950b yen (US$8.8b) in loans to help it weather the coronavirus crisis rocking the global aviation industry. "There is absolutely no concern on cash flow for a while," ANA executive VP Ichiro Fukuzawa said. "We have been preparing for unexpected circumstances with conservative assumptions." ANA, which had nearly 240 billion yen in cash and securities at the end of March, reached an agreement Tuesday for an additional 350b yen credit line from private-sector banks, in addition to an existing 150b yen credit line. The airline had previously secured a 100b yen loan from banks, and is about to secure 350b yen worth of loans from a public sector lender to help it withstand the unprecedented crisis. Still, aviation analysts expect further financial countermeasures could be needed to help steady Japan's biggest carrier with the global pandemic likely to wipe out demand for the rest of the year. While ANA has suspended its guidance on earnings for this fiscal year due to uncertainty around when the coronavirus crisis might end, Fukuzawa said that the company assumed that a gradual recovery would start to take effect by August.<br/>