Avolon's latest results.

The international aircraft leasing company, Avolon has released details of its latest results for the third quarter of 2022, in which it achieved a net Income for the three months to 30 September was $141 million and $227 million for the nine months to 30 September.  The firm sold 13 owned aircraft and 4 engines during the quarter as well as executed a total of 54 lease transactions. 

Andy Cronin, CEO, commented: “The third quarter contained a number of key milestones for our business, including delivering our strongest and most profitable quarter post-pandemic, a landmark aircraft financing transaction with Malaysia Airlines, and the successful completion of our leadership transition.  We also raised close to $1 billion of new capital and saw all of our key financial metrics strengthen during the quarter, further enhancing our balance sheet.

As the recovery in international and long-haul traffic gains momentum, we are seeing robust demand at attractive lease rates for our young, fuel-efficient aircraft. This market backdrop, our balance sheet strength and our strong cashflow profile positions Avolon to continue to drive an improving earnings performance in the period ahead.”

-       Net Income for the three months to 30 September was $141 million and $227 million for the nine months to 30 September (excluding the impact of Russia);

 

-       Recognised $546 million of lease revenue and generated $278 million of net cash from operating activities in the quarter;

 

-       Ended the quarter with total available liquidity and contracted sales of approximately $6.8 billion, including $5.7 billion of undrawn debt facilities;

 

-       Ended the quarter with $16 billion of unencumbered assets and net leverage of 2.3x;

 

-       Agreed a landmark transaction with Malaysia Airlines for the financing of 20 A330-900neo aircraft valued at over $2 billion;

 

-       Upsized unsecured revolving credit facility by $0.2 billion bringing the total facility size to $4.6 billion and executed a $0.7 billion term financing facility maturing 2029; and

 

-         Post quarter end, Avolon announced the appointment of Ross O’Connor as Chief Financial Officer, Felipe Campos as Chief Operating Officer and Jim Morrison as Chief Risk Officer.

 

2022 THIRD QUARTER | FLEET HIGHLIGHTS

• Executed a total of 54 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions; 

 

• Sold 13 owned aircraft and 4 engines during the quarter and entered into Letters of Intent for the sale of 7 owned aircraft;

 

• Delivered a total of 4 aircraft to 3 customers and transitioned 7 aircraft to follow-on lessees;

 

• Owned and managed fleet of 568 aircraft at quarter end, with total orders and commitments for 265 fuel-efficient, new technology aircraft;

 

• Average owned fleet age of 6.4 years with an average remaining lease term of 6.8 years; and

 

• Ended the quarter with a total of 149 airline customers operating in 63 countries.

2022 THIRD QUARTER | FINANCIAL & BUSINESS HIGHLIGHTS

 

INCOME & CASHFLOW ($ MILLION)	Q3 2022	Q3 2021	9M 2022	9M 2021
Lease Revenue	546	518	1,743	1,598
Operating Cashflow	278	237	903	549
Net Income	141	6	(33)	(14)
Net Income (excluding Russia)	141	6	227	(14)

 

 

BALANCE SHEET ($ MILLION)	Q3 2022	FY 2021	CHANGE
Total Available Liquidity (incl contracted sales)	6,781	6,387	394
Total Assets	30,020	30,984	(964)
Secured Debt / Total Assets	20%	20%	-
Net Debt to Equity	2.3x	2.4x	(0.1x)