09 February, 2024
Net income of US$339 million and record $1.75bn operating cashflow for leasing giant Avolon
26 January, 2024
Aircraft leasing firms in high demand as aircraft shortage continues......
More people to fly in 2024 than ever before as passenger revenue set to rise to US$717 billion
India, Saudi Arabia, and the UAE are emerging as key drivers of growth
Momentum builds behind SAF as key decarbonisation lever
· Airlines: In 2023 airline revenues accelerated 22% compared to a 3% rise in global GDP. A return to positive cashflows has enabled airlines to repay US$57 billion of government debt provided during the pandemic. The continued reopening of Chinese international travel will provide positive momentum for airlines through the year.· Manufacturers: The undersupply of aircraft will take years to unwind, increasing the value of delivered aircraft, and extending their economic lives. The widebody production recovery is lagging behind narrowbodies resulting in a tighter market and longer wait times for twin-aisle aircraft.· Lessors: With both aircraft and capital in short supply, the role of lessors is strengthening. Investment grade lessors that have secured attractive new aircraft orderbooks are best positioned for the years ahead. Market lease rates took time to adjust to higher interest rates, but they have risen as much as 35% in 2023 with further growth expected this year.· Innovation & Sustainability: Momentum behind sustainable aviation fuel (SAF) is building and an estimated US$2 trillion of investment is required to scale up production to levels required to hit net zero goals. Flying will get more expensive this decade as airlines face tighter labour markets, increasing sustainability pressures, and engine durability challenges.· Risks: The macroeconomic outlook is normalizing as inflation trends downwards, but softer demand threatens in the U.S. and potentially Europe. Political risk will be in focus in 2024, with conflicts in the Ukraine and the Middle East and ongoing tensions between China and the West. The production ramp up by OEMs is vulnerable to supply chain pressure and regulatory oversight.
11 January, 2024
Transavia France takes delivery of its first A320neo
Avolon delivers first A320neo to Transavia.
10 January, 2024
Strong performance from Avolon
- Placed orders for 200 new aircraft including 100x A321neo, 80x 737MAX and 20x A330neo;
- Entered into letters of intent for the sale and leaseback of 51 new aircraft;
- Delivered, transitioned and sold a total of 104 aircraft;
- Raised US$4.9 billion of new financing and increased total revolving debt capacity to
US$6.1 billion; and
- Investment Grade ratings affirmed by Moody’s, S&P, Fitch and KBRA with Fitch moving Avolon’s BBB- rating to Positive outlook.
Avolon, a leading global aviation finance company, issues an update for the fourth quarter (‘Q4’) and 2023 full year (‘FY’).
Andy Cronin, CEO Avolon, commented: “Strengthening market conditions allowed us to place our orderbook and used aircraft at accretive lease rates while underwriting US$4bn of new volume through the sale and leaseback market. Our balance sheet scale allowed us to order a further 200 new technology aircraft which strengthens our delivery pipeline and growth into the next decade.”
13 December, 2023
Avolon continues to drive growth with orders for additional 140 aircraft
Orders for 100 Airbus A321neos and 40 Boeing 737 MAXsA total of 200 aircraft were ordered directly from Boeing and Airbus this year
03 November, 2023
Avolon's third quarter results
Income Statement | Three Months Ended September 30 |
| Nine Months Ended | ||||||
(US$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 | |
09 October, 2023
Cathay Pacific and Avolon agree on sale and leaseback deal for 9 Airbus A320 family jets.
06 September, 2023
50 Airbus A320neos on order converted to larger A321neo model by Avolon
14 August, 2023
Avolon partners with Soisa Aircraft Interiors to turn scrap material from old aircraft into craft products.
27 July, 2023
US-Bangla Airlines to lease two Airbus A330-300s from Avolon
Avolon, the international aircraft leasing company, has added US-Bangla Airlines as a new customer, with an agreement to lease the Bangladeshi carrier two Airbus A330-300 aircraft.
20 July, 2023
Avolon's second-quarter 2023 results
Andy Cronin, Avolon CEO, commented: “This was an excellent quarter for Avolon which demonstrates the positive net income and lease revenue trajectory of the business. Our increased trading and sale and leaseback activity, along with placement from our order book at attractive lease rates, will drive our financial performance in the future setting the foundation for long-term profitability.
Our commitment with Boeing for 40 new 737 MAX aircraft and Airbus for 20 new A330neo aircraft reflects our confidence in the future outlook of the industry and our customers’ demand for additional aircraft to meet future growth plans in an undersupplied market.”
Key Highlights....
- Strong performance in net income with a 9x increase year-on-year to US$76 million;
- 22% increase in operating cashflow to US$371 million;
- 14% increase in lease revenue year-on-year to US$613 million;
- Raised US$3.4 billion of debt capital in the quarter, including:
• Private offering of US$750 million of senior unsecured notes maturing in 2028;
• US$1.7 billion Term Loan B refinancing with new loan maturing in 2028; and,
• Letter of intent for a US$950 million term financing facility maturing in 2030;
- Total available liquidity of US$7.3 billion, including US$401 million of unrestricted cash, US$6.2 billion of undrawn debt facilities and US$616 million of contracted sales;
- Net debt to equity of 2.2 times, a secured debt to total assets ratio of 22% and US$15 billion of unencumbered assets; and
- Fitch affirmed Avolon’s BBB- rating and improved the rating outlook from Stable to Positive.
2023 SECOND QUARTER | FINANCIAL HIGHLIGHTS
income statement (US$M) | Q2 2023 | Q2 2022 | CHANGE | CHANGE% |
Lease Revenue | 613 | 539 | 74 | +14% |
Operating Cashflow | 371 | 305 | 66 | +22% |
Net Income | 76 | 8 | 68 | 9x |
EBITDA | 578 | 486 | 92 | +19% |
BALANCE SHEET (US$M) | Q2 2023 | FY 2022 | CHANGE | CHANGE% | ||
Total Available Liquidity | 7,263 | 5,567 | 1,696 | +30% | ||
Total Assets | 29,985 | 30,796 | (811) | (3%) | ||
Secured Debt / Total Assets | 22% | 22% | - | - | ||
Net Debt to Equity | 2.2x | 2.3x | (0.1x) | (6%) | ||