Korean Air to issue $817 mln in new shares as virus strains industry

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Korean Air to issue $817 million in new shares as virus strains industry

), plans to sell around 1 trillion won in new shares in its biggest rights issue in 20 years to raise funds amid mounting strains in the industry due to the pandemic.

Korean Air separately plans to receive 1.2 trillion won in support from South Korean state-owned banks. 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.

A spokeswoman for Korean Air said it was operating just 10% of its previously planned international schedule, and 60% of its domestic schedule.

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