Japan's transport minister said Wednesday that he did not rule out bankruptcy protection for struggling Japan Airlines, sending shares in the loss-making carrier plunging.

"I have never said the government would not allow bankruptcy protection" for JAL, Seiji Maehara told a parliamentary panel.

He said his earlier remarks ruling out a collapse of the carrier had meant to indicate that the government would not allow it to disappear altogether.

Bankruptcy protection can enable a company to restructure its debts with creditors and implement other measures to emerge stronger, as seen with ailing US auto giant General Motors earlier this year.

JAL, Asia's largest carrier, is seeking an injection of public funds to boost its capital as it restructures under the supervision of a government-backed turnaround body.

It is also set to receive an emergency loan from a state-backed lender.

The airline last week reported a massive net loss of Y131.2-billion ($1.5-billion) for the fiscal first half to September, scrapping its forecasts for the rest of the year due to the uncertain outlook.

JAL plans thousands of job cuts and a drastic reduction in routes.

Maehara's remark sent JAL's share price down almost six percent to Y96 in morning trade. At one point it hit an all-time low of Y94.