Delta Air Lines saw its cash balances rise during the three months ending 30 June, even as it closed a $360 million purchase of a minority stake in Virgin Atlantic Airways.
Cash, cash-equivalents and short-term investments were up 9.2% to $3.92 billion at the end of June compared to 31 March. Cash was up 12% versus a year earlier.
Long-term debt and capital leases fell 1.9% to $10.5 billion during the period, in line with Atlanta-based Delta's debt reduction targets. Debt was down 6.3% versus a year earlier.
Capital expenditure was $700 million, including the Virgin Atlantic acquisition, during the quarter, says Paul Jacobson, chief financial officer of Delta, during an earnings call in July.
Jacobson anticipates capital expenditure to be $740 million in the third quarter, when the airline will begin taking delivery of eight to 10 aircraft per month.
Delta is slated to take delivery of its first Boeing 737-900ER in August and the first Bombardier CRJ900 at its subsidiary Endeavor Air (formerly Pinnacle Airlines) in September, Flightglobal's Ascend Online database shows.
The carrier will also begin taking leased Boeing 717-200s from Southwest Airlines in August.
Delta says it has "obtained long-term financing commitments for a substantial portion of the purchase price of 40 CRJ900 and 100 737-900ER aircraft", in a stock exchange filing on 1 August.