TOKYO: Skymark Airlines has secured up to 50 billion yen in financing to prepare for a second wave of novel coronavirus infections, Jiji Press learned August 1. 

Skymark has agreed with creditor banks to extend the repayment deadline for an outstanding 30-billion-yen loan and establish a 20-billion-yen credit line, informed sources said.

The funds are intended for use in employee wages and aircraft lease payments, according to the sources.

In May, Skymark used up its 30-billion-yen credit line with Sumitomo Mitsui Banking Corp., Mizuho Bank and Resona Bank.

The company has recently agreed to repay the loan and borrow the same amount from the three banks and the Development Bank of Japan.

After the refinancing, the loan repayment deadline will be pushed back from November this year to July 2021.

Additionally, Skymark agreed to set up a 20-billion-yen credit line, boosting the total financial resources readily available to the company to 50 billion yen.

The number of passengers on Skymark flights plummeted 94.5 percent from a year before in May due to the government’s state of emergency to deal with the coronavirus crisis. The passenger number plunged 73.9 percent in June even after the emergency was lifted.

Skymark is expected to suffer a sizable loss in the current business year to March 2021. In April, the airline withdrew its listing application to the Tokyo Stock Exchange.

Bigger industry rivals ANA Holdings Inc. and Japan Airlines have also been working to secure funds on hand to guard against prolonged weakness in travel demand.

JIJI Press