JAL - Japan Airlines (JL, Tokyo Haneda) plans to raise a further JPY300 billion yen (USD2.8 billion) in financing as it struggles to survive the impact on travel of the coronavirus pandemic, on top of JPY200 billion (USD1.87 billion) already borrowed from financial institutions since the crisis began.

The company expects to raise the sum from lenders, JAL President Yuji Akasaka told a general shareholders' meeting on June 19, according to Kyodo News.

“We are looking to secure JPY500 billion [USD4.67 billion],” he summarised.

JAL Group posted a net loss of JPY22.9 billion (USD214 million) for the January-to-March period, its first quarterly loss since it went public in September 2012, having emerged from bankruptcy protection in March 2011.

JAL has said it foresees an ongoing recovery in passenger numbers on domestic flights.

“Demand for domestic air travel is increasing year-on-year and has recovered to around 20%,” it said in a statement on June 18, adding that it would recover to about 40% in the first half of July and about 50% in the second half of July.

“As a result, we will operate more than 50% of JAL Group's initial plan, including the resumption of some operations on suspended routes,” it added.

Previously unannounced resumptions between July 15 and July 30 include three routes from Amami O Shima to Fukuoka, Osaka Itami, and Tokyo Haneda; Tokyo Haneda to Misawa; Osaka to both Matsuyama and Oki; and Fukuoka to both Kochi, JP and Tokushima.

“We will change our business structure that was dependent on business-related demand into one that can enhance profitability in line with tourism demand,” Akasaka told shareholders.

On June 21, sources at JAL Group told Kyodo News that it would provide up to JPY150,000 (USD1,400) as a morale-boosting special allowance to almost all of its employees in early July - around 36,000 people. The payments will total about JPY5 billion (USD46.7 million).

Neither Akasaka nor chairman Yoshiharu Ueki will receive a bonus this year, while other executives will have their bonuses cut by 70%, the sources added.