Star Flyer Inc. is considering increasing its capital by up to 10 billion yen, it has been learned.
The Kitakyushu-based airline is aiming to improve its financial situation, which has deteriorated due to the novel coronavirus pandemic. The company is finalizing specific measures for the capital increase centered on a third-party allocation of newly issued shares.
The capital increase could amount to as much as 10 billion yen.
Star Flyer has suspended international flights since March and drastically reduced the number of domestic flights. The plan for a capital increase came after Star Flyer posted a net loss of 3.7 billion yen in its nonconsolidated financial results for the April-June 2020 period and its equity ratio fell to 12.4% as of the end of June.
ANA Holdings Inc. held a 17.96% stake in Star Flyer as of the end of March, making it the largest shareholder in the airline.
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