Japan Airlines shares fall to record low
Struggling Japan Airlines (JAL) yesterday saw its shares close at a record low of 87 yen on the Tokyo Stock Exchange after it emerged that Mitsui & Co broking house had sold all its shares in the carrier.
A spokesperson for Mitsui & Co said it had sold all of its 11.7 million shares between the April and September period.
The share sale has again fuelled fears about the airline’s future. JAL, like many others throughout the world, is struggling to stay afloat during the global economic downturn which has led to a slump in demand. Many airlines have been forced out of business as fewer people are travelling by air.
However, JAL has also been affected by the outbreak of swine flu and the airline recently posted a net loss of 32.3 billion yen for the July to September period, compared with a 40.1 billion yen profit a year ago.
The airline recently unveiled plans to eliminate thousands of jobs in a bid to save money as it struggles with $15 billion of debts and a big pension deficit.
The news comes as JAL, which is Asia’s largest carrier, is seeking an injection of public funds to strengthen its capital as it restructures under the watchful eye of a state-backed turnaround body.
Last week, the airline was offered a $1 billion (£600 million) lifeline from Delta Air Lines and its Sky Team alliance partners.
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