ANA to issue shares for $3.2 billion to face pandemic

Tokyo, Nov 27 (efe-epa).- Japanese group ANA, the parent company of All Nippon Airways (ANA) arline, will issue new shares worth 332 billion yen ($3.2 billion) to cope with the impact of the coronavirus pandemic.

The company plans to use the proceeds from the operation to invest in new assets, including the acquisition of Boeing 787 aircraft, which it expects will “enhance the ability to optimize supply-demand and reduce negative environmental impacts,” and repay debt, it said Friday in a statement.

This financing plan for ANA comes after it obtained 400 billion yen ($3.85 billion) in bank loans.

ANA’s financial situation is considered relatively stable compared to airlines in other countries, but Japan’s largest airline by number of passengers expects record losses of 510 billion yen ($4.9 billion) for the current fiscal year, which will conclude Mar. 31, 2021, due to the weakness of demand over the COVID-19 pandemic.

The pandemic has also affected its main competitor Japan Airlines (JAL), to a lesser extent, as the group already underwent a restructuring after its 2010 bankruptcy.

JAL also announced in early November a share issue with the aim of raising up to 182.65 billion yen ($1.76 billion) to try to survive the pandemic and cover replacement costs for its fleet.

The Japanese government launched a national tourism subsidy system to support the sector, but the new increase in COVID-19 cases, at record levels in the archipelago, has clouded the prospects for the recovery of flights.

The International Air Transport Association estimates that world air traffic will not return to pre-pandemic levels until 2024. EFE-EPA

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