For the first time in a long time, Japan Airlines has seen its shares leap up almost a third. This big increase comes just after the Japanese government pledged to double its credit line to the cash strapped national carrier.

Apparently the shares of Japan Airlines rose 31.3 percent to Y88. This rise came just after a 38.8 percent clime on the first day of trading after the New Year break. Thus, Japan Airlines was more than able to come back from a 30.9 percent loss last week.

The Development Bank of Japan said that it is still considering a request from the government to double the credit to Japan Airlines to Y200 billion. This is up from the current Y100 billion. The additional funds would ease concerns of creditors, shareholders, and customers of the airline over stability. This would also give the airline some time to work on its restructuring plan.

Japan Airlines has Y45 billion left from its original Y100 billion line extended by the Development Bank of Japan in November. Investors went on to start feeling very nervous last week amid rising speculation that Japan Airlines would end up filing for court-backed rehabilitation, similar to that of Chapter 11 Bankruptcy in the United States.

Back in November, the airline secured an emergency loan from the Development Bank of Japan, saying that the loan was necessary for continuance of its flights. The full amount of the loan was never revealed, but most suggested that the loan was for about €1.3 billion due to the fact that this was the amount that the airline needed to continue its operations.