09 February, 2024

Net income of US$339 million and record $1.75bn operating cashflow for leasing giant Avolon

Avolon, a leading global aviation finance company connecting capital with customers to drive the transformation of aviation and the economic and social benefits of global travel has released details of its latest performance. 


The firm reported a net income of US$110 million for the fourth quarter of 2023 whilst full-year net income amounted to US$339 million, representing a US$330 million increase on 20222 levels.

Avolon delivered record operating cash flow of US$1.75 billion, up 45% on last year and a 6% increase in lease revenue to US$2.5 billion.  It firm raised US$4.9 billion of debt across both the public and private markets.  Total available liquidity at year end of US$7.2 billion, including US$690 million of unrestricted cash and US$6.2 billion of undrawn debt facilities.

Andy Cronin, Avolon CEO, commented:  “Robust demand for aircraft, combined with continued undersupply, provided a tailwind to placing our orderbook and used aircraft at attractive lease rates, which will drive future profitability. Record operating cashflow and a sharp increase in net income are testament to our success in 2023.

The orders made for 200 new technology aircraft during the year strengthen our delivery pipeline and provide embedded growth to support our customers into the next decade. Against an attractive market backdrop, Avolon has an industry-leading platform and robust balance sheet to drive future earnings growth.”


Key business highlights.

Ordered 200 new aircraft including 100 A321neo, 80 737MAX and 20 A330neo;
 

Underwrote US$4 billion of new volume through the sale and leaseback market;
 

Executed 147 lease transactions comprising new aircraft leases, follow-on leases and lease extensions;
 

Delivered 43 new aircraft and transitioned 30 aircraft to 22 customers;
 

Sold 31 aircraft and ended the year with 25 aircraft agreed for sale;
 

Added 10 new customers, giving a total of 146 airline customers operating in 65 countries;
 

Ended the year with an owned, managed and committed fleet of 1,035 aircraft, including orders and commitments for 458 fuel-efficient, new technology aircraft; and,



| FINANCIAL HIGHLIGHTS

 

 

INCOME STATEMENT
(US$M)

Three Months Ended

December 31

 

Year Ended
December 31

 

2023

2022

$ Change

% Change

 

2023

2022

$ Change

% Change

Lease revenue

674

594

80

+13%

 

2,473

2,337

136

+6%

Operating cashflow

444

304

140

+46%

 

1,751

1,207

544

+45%

Adjusted EBITDA*

684

585

99

+17%

 

2,510

2,375

135

+6%

Net income

110

41

69

+168%

 

339

9

330

 

 

 

Balance Sheet (US$M)

December 31, 2023

December 31, 2022

$ Change

% Change

Total available liquidity

7,228

5,567

1,661

+30%

Total assets

30,513

30,796

(283)

(1%)

Secured debt / Total assets

23%

22%

1%

N/A

Net debt to Equity

2.2x

2.3x

(0.1x)

N/A