Alaska Air Locks In More Financing
Like all of its peers, Alaska Air Group (NYSE: ALK) has been hit hard by the COVID-19 pandemic this year. Revenue fell by more than 80% in the second quarter, as passenger traffic nearly dried up in April and has only partially recovered since then.
That said, the Alaska Airlines parent entered 2020 in better position to cope with a crisis than most other U.S. airlines. Sure enough, Alaska Airlines' low costs, domestic focus, and fleet flexibility are helping it to minimize its cash burn. Meanwhile, the company is capitalizing on its strong balance sheet to build up a huge liquidity cushion.
On July 2, Alaska Airlines and regional subsidiary Horizon Air raised $1.17 billion of new debt backed by 61 aircraft. The collateral consists of 16 Boeing 737-900ERs and 19 Embraer E175s delivered between 2016 and 2019, as well as 26 older Boeing 737-800s delivered between 2007 and 2010.
Source Fool.com
