US Airways cash and debt up in Q2

Washington DC
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Cash and long-term debt were up at US Airways in the second quarter, compared to a quarter earlier.

The Tempe, Arizona based carrier had $2.5 billion in cash and cash equivalents at the end of the quarter, a 13.6% increase compared to the end of the first quarter. It had $2.2 billion in cash at the end of June 2011.

Doug Parker, chief executive of US Airways, says that it will likely use any excess cash to pay down debt going forward, in an earnings call today.

US Airways had $4.03 billion in long-term debt and capital leases at the end of June, up 1.3% from $3.98 billion at the end of March. It had $3.9 billion in debt at the end of the second quarter of 2011.

The Star Alliance carrier closed a three-tranche $623 million enhanced equipment trust certificate deal for 12 Airbus A321 aircraft in May. It was split between $380 million class A certificates with a 5.9% coupon, $125 million class B at 8%, and $118.6 million class C at 9.13% in May.

US Airways also closed a $100 million take-off and landing slot backed loan in April, according to a stock exchange filing. It matures in March 2014.