TOKYO, Nov. 6 (Xinhua) -- Japan Airlines Co. (JAL) said Friday it planned to raise 167.9 billion yen (1.6 billion U.S. dollars) via a public stock offering this year in order to survive the harsh business environment amid the COVID-19 pandemic.

The fund will also be used to cover replacement costs for its fleet, the company said.

The sharp decline in air travel due to the pandemic battered the airline business and induced the first capital increase since JAL's relisting in 2012.

Despite JAL's strong financial foundation, it still expects to log a record net loss for the current business year through March.

The company aims to use about 100 billion yen (952.9 million dollars) for investment and the rest to repay debts after it secures the funds by issuing 100 million shares.

According to the company, it will spend some of the raised funds to replace Boeing 777s with more fuel-efficient Airbus 350s.

"We will consider various options. We will do so in a flexible manner," JAL said in an online press briefing.

According to the company, it will not rule out the possibility of taking out subordinated loans, which have a lower repayment priority than other loans and can largely be considered as capital. Enditem

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