Avolon, a leading global aviation finance company, announced results for the third quarter of 2023, which demonstrated the firm executed 43 lease transactions comprising new aircraft leases, follow-on leases and lease extensions.
Andy Cronin, Avolon CEO, commented: “The third quarter showed the continuing positive trajectory of our financial performance, helped by strong demand for aircraft and rising lease rates. We continued to support our customers’ demand for capital and have underwritten US$2.9 billion in new sale and leaseback volume year to date. These transactions, along with lease extensions and aircraft placed from our orderbook at attractive lease rates, will drive our long-term profitability. We expect the current strong demand for travel and undersupply of aircraft to remain for the foreseeable future.”
Income Statement | Three Months Ended September 30 |
| Nine Months Ended | ||||||
(US$M) | 2023 | 2022 | $ Change | % Change |
| 2023 | 2022 | $ Change | % Change |
Lease revenue | 588 | 546 | 42 | +8% |
| 1,799 | 1,743 | 56 | +3% |
Operating cashflow | 626 | 278 | 348 | +125% |
| 1,307 | 903 | 404 | +45% |
Net income | 97 | 141 | (44) | (31%) |
| 229 | (33) | 262 | N/A |
Adjusted net income* | 103 | 104 | (1) | (1%) |
| 235 | 215 | 20 | +9% |
* Excluding impact of Russia and unrealized gains/losses on investments
Balance Sheet (US$M) | September 30, 2023 | December 31, 2022 | $ Change | % Change | |
Total available liquidity | 7,536 | 5,546 | 1,990 | +36% | |
Total assets | 30,351 | 30,796 | (445) | (1%) | |
Secured debt / Total assets | 22% | 22% | - | N/A | |
Net debt to Equity | 2.2x | 2.3x | (0.1x) | N/A | |
Net income of US$97 million for the quarter, a 28% increase on Q2, and US$229 million year to date;
- 8% increase in lease revenue to US$588 million;
- Strong performance in operating cashflow, up 125% to US$626 million;
- 21% reduction in receivables and deferred balances over the quarter;
- Total available liquidity of US$7.5 billion, including US$630 million of unrestricted cash and US$6.9 billion of undrawn debt facilities; and,
- Net debt to equity of 2.2 times, a secured debt to total assets ratio of 22% and US$16 billion of unencumbered assets.
2023 THIRD QUARTER | FLEET HIGHLIGHTS
Executed 43 lease transactions comprising new aircraft leases, follow-on leases and lease extensions;
Delivered 7 new aircraft and transitioned 4 aircraft to a total of 7 customers;
Entered into letters of intent for the sale and leaseback of 16 aircraft;
Sold 14 aircraft and entered letters of intent for the sale of a further 15 aircraft;
Orderbook 95% placed to the end of 2025;
Confirmed order for 20x A330neo aircraft; and,
Ended the quarter with an owned and managed fleet of 568 aircraft, with total orders and commitments for 329 fuel-efficient, new technology aircraft.