JetBlue Airways plans to use to cash to pay for its five unfinanced Airbus A321 deliveries in 2014.
The New York-based carrier already has “committed financing” for the remaining four A321s that it will take delivery of during the year, according to a recent stock exchange filing.
JetBlue does not plan to take delivery of any additional aircraft during 2014.
Cash, cash equivalents and investment securities were down more than a third to $627 million during the fourth quarter. Cash fell 14.2% from $731 million at the end of 2012.
Long-term debt and capital lease obligations decreased 4.1% to $2.12 billion during the fourth quarter. Debt was down nearly 14% from $2.46 billion since 31 December 2012.
JetBlue closed a $225.7 million secured enhanced equipment trust certificate (EETC) deal on 2 October 2013, it first capital markets deal in seven years. The notes have a nine-year maturity and carry an interest rate below its weighted average cost of debt, which was 4.2% at the end of September 2013.
Proceeds from the issue will be used to make a final principal payment of $188 million on JetBlue’s 2004 EETC this coming March. The notes fund the same month.
The 2013 EETC is secured by 14 Airbus A320 aircraft already in the airline’s fleet.
JetBlue had 23 unencumbered aircraft at the end of 2013, including 21 A320s and two Embraer 190s. This is up from 11 at the end of 2012.
Source: Cirium Dashboard
