American cash and debt jumps in Q2

Washington DC
This story is sourced from Pro
See more Pro news »

American Airlines saw its cash and debt balances jump up by double digits in the second quarter, as the carrier closed more than $1.1 billion in new long-term debt.

Cash and short-term investments was up more than 46% to $6.21 billion at the end of June compared to the first quarter, according to financial documents filed with the Securities and Exchange Commission on 18 July. The metric was up 24.7% year-on-year.

Long-term debt and capital leases less current maturities jumped nearly 19% to $8.35 billion in the second quarter. Debt was up 24.3% compared to 30 June 2012.

Fort Worth, Texas-based American closed a $120 million subordinate C tranche to its 2013-1 enhanced equipment trust certificate (EETC) issue and a $1.05 billion secured term loan backed by its South American route network in June. The term loan financing also included a separate $1 billion revolving credit facility.

The carrier also entered into nine sale and leaseback financing agreements for nine Boeing 737-800s during the second quarter.

Capital expenditures totalled about $915 million during the period, which was up from $885 million during the first three months of the year. These were mostly for aircraft payments.

American took delivery of nine 737-800s and three Boeing 777-300ERs during the quarter.

The carrier anticipates another $1.3 billion in capital expenditures and $1.02 billion in long-term debt and capital lease payments during the second half of the year.

American made $551 million in debt and capital lease payments during the first half.