All Nippon Airways (ANA) plans to raise as much as ¥183 billion ($1.9 billion) by selling new shares in the company and it will use the proceeds to fund its aircraft acquisition programme that sees it increasing its Boeing 787 order to 55 aircraft from 50.
The Star Alliance carrier says in a statement that the sale of up to 537.5 million new shares will raise as much as ¥183 billion.
This will be used for "capital expenditure including the acquisition of aircraft," it says.
Details in the statement show ANA has increased the number of 787s on order to 55 from 50.
It did this at the end of May by switching some 767-300ERs on order to 787s, an ANA spokesman in Tokyo tells ATI.
Last September ANA announced it had ordered nine 767-300ERs from Boeing as interim lift but the ANA spokesman says this order has since been cut to four.
ANA says the economic outlook remains uncertain and the international swine flu outbreak has "presented another market shock".
"In particular demand for business travel has dropped more than expected," it adds.
ANA domestic passenger traffic fell 14% and 13% in April and May respectively and international passenger traffic is down 10% and 17% for April and May, it says.
"We may see revenue decreases at the end of the first quarter of this year amounting to approximately ¥30 billion" so results for the first fiscal quarter, three months ending 30 June, are expected to be harsher than 2008's fiscal fourth quarter, it adds.
"To recover approximately ¥30 billion," the company will reduce capacity in line with demand, delay the introduction of widebody cargo aircraft, introduce one-month unpaid leave for staff, introduce cost cutting measures, make improvements to procurement procedures and introduce more "value-added charged services" on flights, says ANA.