{"id":8090,"date":"2020-05-14T05:27:17","date_gmt":"2020-05-14T10:27:17","guid":{"rendered":"http:\/\/planesintheair.com\/?p=8090"},"modified":"2020-05-14T05:27:45","modified_gmt":"2020-05-14T10:27:45","slug":"korean-air-to-issue-817-million-in-new-shares-as-virus-strains-industry","status":"publish","type":"post","link":"https:\/\/planesintheair.com\/?p=8090","title":{"rendered":"Korean Air to Issue $817 Million in New Shares as Virus Strains Industry"},"content":{"rendered":"\n

SEOUL (Reuters) – South Korea’s largest airline, Korean Air, plans to sell around 1 trillion won ($816.55 million) in new shares in its biggest rights issue in 20 years to raise funds amid mounting strains in the industry due to the pandemic.<\/p>\n\n\n\n

Korean Air is the latest carrier to raise funds as travel restrictions imposed by governments around the world have led to airlines grounding their fleets worldwide.<\/p>\n\n\n\n

Korean Air separately plans to receive 1.2 trillion won in support from South Korean state-owned banks.<\/p>\n\n\n\n

About 79 million newly issued shares, to be listed on July 29, will be first bought by the carrier’s shareholders, including holding company Hanjin Kal which has a 30% stake in the carrier, followed by general public, the company said in a statement.<\/p>\n\n\n\n

“Korean Air will continue to carry out self-rescue measures to overcome the dismal business environment due to COVID-19,” the company said.<\/p>\n\n\n\n

Korean Air had 70% or more of its employees working in South Korea take a six-month leave of absence in April. Woo Kee-hong, the airline’s president, warned in March that the coronavirus outbreak could threaten its survival if the situation becomes prolonged.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Korean Air also picked last month a preferred bidder to buy its real estate and non-core assets, which some analysts value at about 400-500 billion won.<\/p>\n\n\n\n

Korean Air had a debt-to-equity ratio of about 870% as of end-2019. It is expected to announce January-March quarter earnings later this week.<\/p>\n\n\n\n

A spokeswoman for Korean Air said it was operating just 10% of its previously planned international schedule, and 60% of its domestic schedule.<\/p>\n\n\n\n

The airline said it expects its June international schedule to rise to 20% of its previous plan, as it announced the addition of more international passenger flights to prepare for increased travel demand once COVID-19 restrictions are relaxed.<\/p>\n\n\n\n

United Airlines Holdings Inc said earlier this month it plans to raise $2.25 billion through a bond offering, after announcing a public offering to raise more than $1 billion in April.<\/p>\n\n\n\n

In March, Singapore Airlines said it would issue S$5.3 billion ($3.70 billion) in new equity and up to S$9.7 billion($6.78 billion) via mandatory convertible bonds in a rights issue backed by state investor Temasek Holdings.<\/p>\n\n\n\n

($1 = 1,224.6700 won)<\/p>\n\n\n\n

(Reporting by Joyce Lee; Editing by Simon Cameron-Moore and Louise Heavens)<\/p>\n\n\n\n

\"\"
Korean Air’s passenger planes are parked following outbreak of COVID-19, at Incheon International Airport<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

South Korea’s largest airline, Korean Air, plans to sell around 1 trillion won ($816.55 million) in new shares in its biggest rights issue in <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[89],"tags":[11596,539,420,118,8899,9089,160,3022,4910,5697,3619,988,2150,1925,655,10030,10634,11595,2283,11086,4864,3882,6516,3914,2030,10911,3786,11594,2870,807,9659,1681,199,1657,1536,11599,2454,1843,6096,11602,10026,718,412,6583,10162,6582,10938,3147,639,4771,3895,3912,3883,7597,1699,1288,2613,4256,2451,1851,2275,11600,680,1993,11521,1634,11593,9542,11601,11598,1691,1658,1916,444,10116,11597,2755,839],"class_list":["post-8090","post","type-post","status-publish","format-standard","hentry","category-aviation-news","tag-absence","tag-air","tag-airline","tag-airlines","tag-amid","tag-assets","tag-aviation","tag-banks","tag-bidder","tag-biggest","tag-bond","tag-business","tag-buy","tag-carrier","tag-company","tag-coronavirus","tag-covid-19","tag-dismal","tag-domestic","tag-editing","tag-environment","tag-estate","tag-fleets","tag-funds","tag-general","tag-governments","tag-grounding","tag-hanjin-kal-2","tag-holding","tag-holdings","tag-imposed","tag-industry","tag-international","tag-investor","tag-issue","tag-joyce-lee","tag-korean","tag-largest","tag-leave","tag-louise-heavens","tag-mounting","tag-new","tag-news","tag-offering","tag-outbreak","tag-owned","tag-pandemic","tag-preferred","tag-president","tag-prolonged","tag-public","tag-raise","tag-real","tag-reporting","tag-restrictions","tag-reuters","tag-rights","tag-schedule","tag-seoul","tag-shareholders","tag-shares","tag-simon-cameron-moore","tag-singapore-airlines","tag-south","tag-spokeswoman","tag-state","tag-strains","tag-survival","tag-temasek","tag-threaten","tag-transport","tag-transportation","tag-travel","tag-united","tag-virus","tag-woo-kee-hong","tag-world","tag-worldwide"],"_links":{"self":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/8090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8090"}],"version-history":[{"count":1,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/8090\/revisions"}],"predecessor-version":[{"id":8093,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/8090\/revisions\/8093"}],"wp:attachment":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}