Republic Airways saw its cash and cash equivalents fall nearly 22% to $191.9 million during the third quarter, as it took delivery of Embraer 175 aircraft to operate for American Airlines.
The decline was “mainly due to our pre-delivery deposit payments and equity investments in the new E-175s”, said Joe Allman, treasurer of the Indianapolis-based carrier, during an earnings call on 7 November.
Embraer delivered nine E-175s to Republic during the third quarter, Flightglobal’s Ascend Online data base shows.
Cash was down 15.5% from $227.2 million a year ago at the end of September.
Long-term debt less current maturities was up 1.1% to $1.76 billion in the third quarter. The increase was likely due to export credit financing from the Brazilian development bank BNDES for the E-175s.
Debt was down more than 8% since 30 September 2012.