Delta cash and debt down in Q2

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

Delta Air Lines had less cash and long-term debt on its balance sheet at the end of the second quarter, compared to the quarter before.

The Atlanta-based carrier had $2.5 billion in cash and cash equivalents at the end June, which was down 13.8% from $2.9 billion at the end of March. It also had $2.9 billion at the end of the second quarter of 2011.

Delta reports $652 million in capital expenditures during the quarter. These include the $180 million purchase of the Trainer refinery in Pennsylvania plus $50 million in equipment costs, the $65 million investment in Aeromexico, other aircraft purchases and debt payments.

The airline had $11.2 billion in long-term debt and capital leases at the end of the second quarter, which was down 2.6% from $11.5 billion at the end of March. It had $13 billion in debt at the end of June 2011.

Richard Anderson, chief executive of Delta, says that the airline is on track to achieve its goal of $10 billion in long-term debt and capital leases by the end of 2013, in an earnings call today.

Delta finalised its sublease for 88 Boeing 717-200s with Southwest Airlines and Boeing Capital in June. The deal will result in total lease payments for the airline to be $1.6 billion in 2013 and 2014, $1.5 billion in 2015, $1.4 billion in 2016 and $8.8 billion in 2017 and beyond, according to a stock exchange filing.

The airline also launched a $480 million enhanced equipment trust certificates (EETC) issue in June, which it closed this month. The debt is backed by 31 Airbus and Boeing aircraft in its fleet.