Jetblue agrees more sale and leasebacks | News | Airfinance Journal

Jetblue agrees more sale and leasebacks

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Jetblue Airways says it is raising more cash via the sale and leaseback market for new and used aircraft.

The US carrier executed $118 million under sale and leaseback transactions during the second quarter of this year. Jetblue also entered into a binding agreement for three additional sale and leaseback transactions for upcoming deliveries.

All remaining Airbus A320neo family aircraft scheduled for this year will be financed under sale and leasebacks, says Jetblue.

The latest fleet plan shows seven A321neo aircraft scheduled for 2020, as well as the carrier’s first A220 aircraft. As of 31 December, the fleet will reach 267 aircraft, up from 259 at the end of 2019.

In addition, the carrier has entered into two other binding sale and leaseback agreements for aircraft already existing in its fleet.

During the April-June period, Jetblue repaid $78 million in regularly scheduled debt and finance lease obligations. The carrier also drew down $750 million under a secured term loan, which is backed by its slots at New York-JFK, La Guardia and Washington Reagan National airport as well as the airline’s brand name.

Jetblue ended the second quarter with approximately $2.9 billion in unrestricted cash, cash equivalents, and short-term investments, or 36% of 2019 revenue. Including the CARES Act PSP proceeds, its liquidity position reached $3.4 billion at the end of second quarter 2020.

Total debt was $4.77 billion at 30 June, versus $2.33 billion at 31 December 2019.

Jetblue posted a $320 million net loss for the second quarter, reversing a $179 million net income in last year’s corresponding period. Year-on-year revenues were 90% down to $215 million.

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