US Airways cash and debt up in 2012

Washington DC
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US Airways saw its cash and debt increase in 2012, with liquidity at its highest point in six years.

Cash, cash equivalents and marketable securities were up 22% to $2.38 billion during the year. However, they fell less than 1% during the fourth quarter.

Derek Kerr, chief financial officer of Tempe, Arizona-based US Airways, says that the airline paid down $125 million in debt and closed the $546.2 million 2012-2 enhanced equipment trust certificates (EETC) issue during the fourth quarter, during an earnings call on 23 January.

Long-term debt and capital leases were up 6% to $4.38 billion in 2012. Debt was up 5.5% during the quarter.

The 2012-2 EETC issue closed in December, with the senior tranche pricing at 4.625% with a December 2026 maturity and the subordinate tranche pricing at 6.75% with a December 2022 maturity. It is backed by seven Airbus A321s and four Airbus A330s that will be delivered this year.

Capital expenditure is anticipated to be $334 million this year including $164 million in aircraft acquisition expenses, he says.