Avolon owned and managed a fleet of 576 aircraft at year-end, with total orders and commitments for 258 fuel-efficient, new-technology aircraft. Executed a total of 237 lease transactions comprising new aircraft leases, follow-on leases and lease extensions. Delivered a total of 35 new aircraft and transitioned 35 aircraft to a total of 27 customers. Sold 36 aircraft during the year and added 10 new customers during 2022, ending the year with a total of 146 airline customers operating in 63 countries.
The firm agreed a landmark transaction with Malaysia Airlines for the financing of 20 A330-900neo aircraft valued at over $2 billion. Delivered our first A330 to IAI for conversion to dedicated freighter operations. Received inaugural ESG Rating from Sustainalytics with a score of 16.0 placing Avolon in the ‘Low Risk’ category and the top 5% of our industry grouping and fully placed our order for 500 Vertical Aerospace eVTOLs.
Andy Cronin, Avolon CEO, commented: “Momentum in global aviation continued throughout 2022 and we worked closely with our customers to support their demand for aircraft. Our financial performance was strong, with a five-fold increase in adjusted net income and 9% growth in lease revenue. Operating cashflow was 35% higher than 2021 and also ahead of our pre-pandemic cashflow in 2019. A non-cash impairment charge on aircraft in Russia impacted our reported performance but the underlying financial strength of our business is clear.
The outlook for 2023 is positive, and we expect the reopening in China will be the catalyst to drive global traffic to pre-pandemic levels by June. Increasing demand for aircraft to service strong passenger demand, combined with a shortage of new aircraft, is putting upward pressure on lease rates and is positive for long-term residual aircraft values. Avolon’s low leverage, high levels of liquidity, and our order book of new technology fuel-efficient aircraft position us well to take advantage of attractive opportunities to deploy capital in the year ahead.”
2022 | FINANCIAL HIGHLIGHTS
INCOME STATEMENT ($M) | FY 2022 | FY 2021 | CHANGE | CHANGE% |
Lease Revenue | 2,337 | 2,144 | 193 | +9% |
Operating Cashflow | 1,207 | 895 | 312 | +35% |
Reported Net Income | 9 | 47 | (38) | (81%) |
Adjusted Net Income* | 253 | 47 | 206 | +438% |
BALANCE SHEET ($M) | FY 2022 | FY 2021 | CHANGE |
|
Total Available Liquidity | 5,567 | 6,387 | (820) |
|
Total Assets | 30,796 | 30,984 | (188) |
|
Secured Debt / Total Assets | 22% | 20% | 2% |
|
Net Debt to Equity | 2.3x | 2.4x | (0.1x) |
|
*Adjusted Net Income (a non-GAAP measure) excludes the impact of impairment and write-off of lease-associated balances in respect of Russia