Global aviation lessor Avolon said it posted net income of US$105 million for the quarter, up 38% year on year with leasing revenue hitting US$660 million and total revenue of US$701 million. The company said it generated US$448 million of cash from operating activities, up 21% year on year.
Avolon said in its results it raised US$2.8 billion of debt across both the public and private markets including $2.5 billion of unsecured debt including US$1.0 billion senior unsecured notes due 2029, US$1.1 billion unsecured term loans due 2027, and US$450 million upsize in unsecured revolving credit facility. The company said its total available liquidity at quarter end was US$8.2 billion; and net debt to equity of 2.3 times, a secured debt to total assets ratio of 23% and US$17 billion of unencumbered assets.
On the fleet side, the company said it:
- Delivered 15 new aircraft and transitioned 10 aircraft to a total of 16 customers;
- Sold 6 aircraft and entered into letters of intent for the sale of a further 17 aircraft;
- Placed 23 aircraft from our orderbook, ending the quarter with orderbook 98% placed for next 24 months;
- Added 4 new customers, giving a total of 142 airline customers operating in 63 countries;
- Ended the quarter with a portfolio of 1,029 aircraft comprising an owned and managed fleet of 582 aircraft, with total commitments for 447 fuel-efficient, new technology aircraft; and,
- Post quarter end ordered 310 new engines from Pratt & Whitney and CFM International to power A320neo family order book, with options for a further 310 engines.
Andy Cronin, Avolon CEO, said: “This was another strong quarter for Avolon in which our financial performance continued its positive trajectory, driven by high levels of demand for our assets. Our decision to expand our orderbook last year has positioned us with a clear competitive advantage in an undersupplied market. We continue to diversify our sources of capital, raising US$2.5 billion of new unsecured debt this quarter. This provides us with strong liquidity and prudent balance sheet to take advantage of growth opportunities and sustain long-term profitability.”
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