TOKYO: Japan Airlines Co Ltd (JAL) is looking to raise 300 billion yen (US$2.72bil or RM11.29bil) by the end of the month to ride out anticipated funding challenges amid a continued slump in air traffic, two sources familiar with the matter said yesterday.

       The funds will be raised through financing that includes subordinated loans though the exact methods are still under consideration, according to the sources, who confirmed an earlier Nikkei report, declined to comment.

       The airline last month posted a first-quarter operating loss of 82.65 billion yen (RM3.12bil), an improvement from a year earlier, as pandemic-related cost cuts took effect and travel demand rose from a very low base.

       JAL, like other carriers, has been burning through cash reserves to keep jets and workers it will need when travel demand rebounds.

       The airline last month said it expected its cash burn rate to fall to around five billion yen (RM188mil) a month in the second quarter ending Sept 30 from 10 billion to 15 billion yen (RM376mil to RM565mil) a month in the first quarter.

       Rival ANA Holdings Inc last year raised US$3.8bil (RM15.76bil) in subordinated loans and US$3.2bil (RM13.27bil) of equity to help it weather the pandemic and fund the purchase of new planes. ― Reuters