(Bloomberg) -- Japan Airlines Co. plans to raise about 300 billion yen ($2.7 billion) via subordinated bonds and loans to shore up its capital in case the coronavirus pandemic hurts travel demand longer than it expects.

The Tokyo-based carrier said it secured around 200 billion yen in loans from four Japanese banks and plans to sell 100 billion yen of bonds. The financing is partly a “preventive measure” to counter the long-term business impact of Covid-19, general manager of finance Yuichiro Kito told reporters.

The funds will also be used to upgrade its fleet by procuring Airbus SE’s A350-1000 aircraft as its flagship for international lines, JAL said.

The Japanese carrier suffered big losses in the fiscal year ended March after the coronavirus outbreak paralyzed the global aviation industry. While JAL expects that domestic tourism will rebound later this year as vaccination rates rise, the planned fundraising highlights how the outlook for travel remains uncertain.

Japan Airlines, which declared bankruptcy a decade ago and is seeking to weather the coronavirus pandemic without making any major job cuts, is seeking cash to bolster its finances and avoid another crunch. 

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