JAL braces for long winter with new credit line of $960m

Japan Airlines will take out a new credit line worth Y100b ($958m) in November, as the flag carrier seeks to strengthen its business portfolio in the face of financial turmoil from the novel coronavirus that could last for years. JAL, which expects a net loss of Y240b to Y270b for this fiscal year through March 2021, and its first net loss since its relisting in 2012, will take a number of cost-cutting steps, including reducing the size of its fleet and cutting executive pay, to rationalize its business for a period of much lower flight demand. "We have been able to stay on healthy financial ground for the moment," Hideki Kikuyama, a senior managing executive officer in charge of JAL's finances and accounting, said Friday. "We will have an unused commitment line amounting to Y300b," he added. The airline, which had over Y340b in cash and an unused credit line of Y200b as of September, will expand the latter by Y100b. Kikuyama said JAL's cash burn fell significantly in the July to September quarter, compared with the previous three months, when the airline had to deal with a wave of refund requests for bookings made before the COVID-19 pandemic. Story has more.<br/>