JetBlue cash rises in Q2 with debt prepayments

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JetBlue Airways saw its cash balances increase 3.4% to $797 million during the second quarter, even as it prepaid more than $300 million in debt.

Cash, cash equivalents and investment securities decreased 8.1% from $867 million at the end of a second quarter of 2013.

Long-term debt and capital leases decreased 9.4% to $2.11 billion during the second quarter. Debt was down 2.8% compared to a year earlier.

JetBlue conducted a number of debt deals in the quarter. It prepaid more than $300 million in debt and issued $81 million in new secured note.

The New York-based airline prepaid $299 million of floating rate notes backed by 14 Airbus A320s with some of the proceeds of its LiveTV sale and $7 million in principal secured by five engines. The aircraft and engines are now unencumbered.

The $81 million in new fixed-rate equipment notes due 2024 are secured by three Airbus A321s, two of which were financed with capital leases resulting in a $76 million cash benefit.

JetBlue also financed one previously unencumbered Embraer 190 during the quarter.

The carrier had 34 unencumbered A320 family aircraft at the end of June, which is up from 20 three months earlier. It had no unencumbered E190s.

JetBlue had 130 A320s, seven A321s and 60 E190s in its fleet at the end of June.