Air Canada closed a sale-and-leaseback for two Boeing 787-9s with GECAS during the second quarter, part of a nearly 7% increase in long-term debt and obligations.
The Montreal-based carrier realised a C$351 million ($268 million) gain from the sale-and-leaseback during the period, it says in its quarterly financial statements. The operating leases are for 12-year terms.
Air Canada took delivery of the 787s (registrations C-FGHZ and C-FKSV, and MSNs 37169 and 37170, respectively) in May and June, the Flight Fleets Analyzer shows.
Long-term debt and finance lease obligations increased 6.8% to C$6.4 billion on aircraft financing during the quarter. Debt was up 25.7% from C$5.09 billion at the end of June 2015.
Air Canada took delivery of two Boeing 777-300ERs and five 787-9s, including the two from GECAS, in the second quarter. The 777s and remaining three 787s were financed with proceeds from its $537 million 2015-2 enhanced equipment trust certificate (EETC) issue that closed in December 2015.
Cash, cash equivalents and short-term investments increased 6.8% to C$3.15 billion during the period. Cash was up 4.3% from C$3.02 billion a year ago.
Source: Cirium Dashboard
