United Airlines makes sufficient cash to start paying, prepaying debt

By Devika Patel

Knoxville, Tenn., June 4 – United Airlines Inc. expects to generate enough cash to begin paying down debt as it comes due, prepaying debt and using cash to pay for aircraft.

Management says it no longer plans to issue debt except in the normal course of business.

“We feel confident [in] our ability to now be generating cash to be used in paying down debt,” chief executive officer Scott Kirby said at the Bernstein 37th Annual Strategic Decisions Conference on Thursday.

“We're done – at least, I believe we're done, raising debt outside the kind of normal course and we'll start de-levering, paying down debt and either paying it down as it comes due or once it becomes pre-payable and to the extent, we're not doing that, we'll probably be paying cash for airplanes to start training some liquidity off the balance sheet,” he said.

United is a Chicago-based airline.

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