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

Healthy business portfolio and cost cuts are priority for it and rival ANA

While demand for domestic flights has begun to recover, global travel restrictions have crippled Japan Airlines' international business.   © Reuters

TOKYO -- Japan Airlines will take out a new credit line worth 100 billion yen ($958 million) 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 240 billion to 270 billion yen 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.

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