Rolls-Royce has planned to raise a capital of 5 billion pounds (around $6.5 billion), including 2 billion pounds from shareholders for strengthening its balance sheet due to the Covid-19 travel crisis, as it affects the British engine maker’s cashflow.

The company in a statement said that despite 4 billion pounds of cash outflow this year, it expects the return of positive cash flow during the second half of next year and targets free cash flow of 750 million pounds in 2022. The company said that it was dependent on long-haul travel recovering. But, as the second wave of coronavirus surged across Europe, airlines have said that it would take 2024 as people are flying as they did in 2019.

“The capital raise announced today improves our resilience to navigate the current uncertain operating environment,” said CEO of Rolls-Royce, Warren East.

The UK Export Finance of British government indicated that it is ready to support an extension of its 80% guarantee of the existing 2 billion pounds five-year term loan of Rolls-Royce. It will support an increase in the loan amount of up to 1 billion pounds.

The right of the issue is subject to the approval at a general meeting by shareholders which is to be held on 27 October.