Hawaiian Airlines cash and debt balances increased during the second quarter, according to results released today.
Cash and cash equivalents was $446.6 million at the end of the quarter, which was up 18.8% from $376 million at the end of the first quarter. Hawaiian had $303.5 million in cash at the end of the second quarter in 2011.
Outstanding debt and capital lease obligations increased 27.3% quarter-on-quarter to $686.8 million at the end of June from $539.7 million three months earlier. Debt was $409 million a year earlier.
Hawaiian closed a $67 million loan for a new Airbus A330-200 at the beginning of May. A pool of banks, including BNP Paribas and Nord/LB, participated in the 10-year debt.
Higher interest and debt amortisation rates during the quarter contributed to the increase in debt, says Scott Topping, chief financial officer of Hawaiian, during an earnings call today.
Capital expenditure was $165 million during the second quarter. This was higher than guidance due to costs related to leases for A330s, the delivery of Hawaiian's seventh A330 in April and additional aircraft and engine deliveries, says Topping.
Hawaiian took delivery of three A330-200s during the second quarter.
The carrier's revolving credit facility remained undrawn at the end of the second quarter, adds Topping. There was $65.6 million available at the end of June, which was up from $56.6 million at the end of March. The facility is based on 12-month forward revenue predictions.
Hawaiian is evaluating financing options for two of its five A330 deliveries scheduled for next year, says Topping. The remaining three aircraft already have debt commitments in place.
The airline is also looking at financing opportunities for aircraft with deliveries in early 2014, he adds.