Air Canada saw its cash balances increase nearly 12% to C$4.05 billion ($3.23 billion) during the second quarter.
Cash, cash equivalents and short-term investments were up 28.6% at the end of June from C$3.15 billion a year earlier, a quarterly financial release from the Montreal-based carrier shows.
Long-term debt and finance leases decreased 1.2% to C$5.89 billion in the second quarter. Debt was down 8% compared to June 2016.
Air Canada took delivery of four Boeing 787-9s during the three months ending in June. Two aircraft were financed with $279 million in Japanese operating lease with call option (JOLCO) debt, split between $214 million at a floating interest rate, Y5.87 billion ($53.2 million) at a fixed rate and Y1.25 billion at a floating rate.
The JOLCOs, which allow the airline to finance 100% of aircraft capital costs, mature in 2027.
Air Canada financed the remaining two 787s with 12-year sale and leasebacks that netted it C$371 million in proceeds.
The airline also reduced the margin on its $1.1 billion in senior secured credit facility by 50bps to 225bps over Libor during the quarter. The facility includes an $800 million term loan due in 2023 and a $300 million revolving credit facility that expires in 2021.
Air Canada expects two Boeing 737 Max 8 and one 787-9 deliveries in the second half, the filing shows.
Source: Cirium Dashboard