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.

 

Third quarter update from leasing firm Avolon....

Another aircraft leasing firm has released details of its performance in the third quarter of 2022. Avolon advise us they have executed a total of 54 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions;

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

-       Sold 13 aircraft during the quarter;

-       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;

-       Ended the first quarter with total of 149 airline customers operating in 63 countries;

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

-       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;

-       Post quarter end, Avolon announced that it had further strengthened its Leadership team with appointments to the roles of Chief Financial Officer (CFO), Chief Operating Officer (COO) and Chief Risk Officer (CRO),

·         Ross O’Connor, Avolon’s Head of Capital Markets, has been appointed as CFO;

·         Felipe Campos, Avolon’s Chief Technical Officer, has been appointed as COO; and

·         Jim Morrison, Avolon’s Head of Portfolio Management, has been appointed as CRO.

Leasing giant Avolon makes top level changes....

The international aircraft leasing company Avolon, has announced some top-level changes, with the appointments in the roles of Chief Financial Officer (CFO), Chief Operating Officer (COO), and Chief Risk Officer (CRO).

Ross O’Connor, Avolon’s Head of Capital Markets, has been appointed as CFO

Felipe Campos, Avolon’s Chief Technical Officer, has been appointed as COO

Jim Morrison, Avolon’s Head of Portfolio Management, has been appointed as CRO

All three will also join Avolon’s Executive Committee (ExCo) with immediate effect.

Following a successful transition period, outgoing CEO, Dómhnal Slattery, has also stepped down from his role effective 1 October, with CEO Designate, Andy Cronin, assuming the role of CEO.

Avolon’s ExCo now comprises Andy Cronin (CEO), Paul Geaney (President & Chief Commercial Officer), Ciara Ruane (Chief People Officer), Ross O’Connor (CFO), Felipe Campos (COO), and Jim Morrison (CRO).

Andy Cronin, Avolon CEO, commented: “Today’s appointments further strengthen our leadership team and position us as an industry leader. The appointment of Ross, Felipe, and Jim, directly from our senior management team, underlines the strength and depth of the people within our business. All three have the experience, proven leadership qualities and deep industry expertise to excel in their roles and make a significant, positive contribution on the next stage in Avolon’s journey.”

 

Top level changes at leasing giant Avolon

Avolon, the international aircraft leasing company, announces that its Chief Executive Officer (CEO), Dómhnal Slattery, has informed the Board of his intention to step down from his executive role and from the Board in 2022. Avolon’s Board has unanimously appointed Andy Cronin, Avolon’s President & Chief Financial Officer (CFO), to the role of CEO Designate. In addition, Paul Geaney, Avolon’s Chief Commercial Officer (CCO) is appointed to the role of President & CCO with immediate effect.

Dómhnal Slattery

Dómhnal Slattery is Avolon’s founding CEO and has overseen the growth of the business from the largest private equity backed start-up globally in 2010 to becoming the world's second largest aircraft lessor with a balance sheet in excess of US$30 billion. Having served for 12 years and built a business with a market leading team and franchise, he has elected to step down from his executive role and will now pursue a range of other interests in a non-executive capacity. Dómhnal will work closely with new CEO Andy Cronin over the coming months, to ensure an effective transition of leadership.

Andy Cronin

Over 100 aircraft transactions for Avolon .......

Avolon, the international aircraft leasing company has released some details of its performance in the second quarter during which it conducted over 100 aircraft transactions. 

Avolon is headquartered in Dublin, Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, executed a total of 54 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions.  The firm entered into Letters of Intent for the sale and leaseback of 13 aircraft and the placement of 31 aircraft from Avolon’s orderbook;

 

It delivered 1 aircraft and transitioned 9 aircraft to follow-on lessees, sold 2 aircraft during the quarter and entered into binding sale agreements for the sale of 30 owned aircraft. It ended the second quarter with a total of 146 airline customers operating in 62 countries and owned and managed a fleet of 591 aircraft at quarter-end, with total orders and commitments for 260 fuel-efficient, new technology aircraft.

Major new partnership formed to ramp up the introduction of EVTOL operations in Brazil

A major new partnership of global leaders in aviation and airports announces its intention to explore the infrastructure requirements to bring eVTOL passenger flights to Brazil within this decade. The partnership includes:

 

Avolon, the world’s second largest aircraft leasing company;

Corporación América Airports, the largest global private sector airport operator by number of airports;

GOL, Brazil’s largest airline;

Grupo Comporte, a leading Brazilian transport operator; and

Vertical Aerospace, the aerospace and technology company developing and manufacturing eVTOL aircraft.

The partnership will explore and define vertiport design and locations, as well as further infrastructure requirements for eVTOL operations in Brazil. With its well-developed Urban Air Mobility (UAM) market based on helicopter services, advanced aviation ecosystem and unique demographics, Brazil is set to become one of the pioneering markets for eVTOL services, including for Vertical’s VX4.

 

Each partner brings sector-specific and complementary expertise to bring eVTOL operations into operation in Brazil this decade. In particular, the partnership will benefit from Corporación América Airports’ special team dedicated to the research and development of the Advanced Air Mobility (AAM) segment and its two-decade-long expertise in airports design, construction and operation, as well as passenger traffic management. Corporación América Airports has already developed its own conceptual vertiport design and progressed AAM traffic analysis across several countries.

 

With some of the most congested cities in the world, the introduction of eVTOLs, such as the VX4, will transform how people move around and above the urban landscape, in Brazil. The VX4 will permit short-haul zero-emissions journeys that will revolutionise city air travel for Brazilians’ everyday lives by changing how we connect, commute and travel more efficiently, all in a more sustainable way.

 

This partnership builds on GOL’s and Grupo Comporte’s commitment to purchase or lease up to 250 of Vertical’s VX4 eVTOL aircraft from Avolon, announced last year. That commitment saw Avolon launch and lead a Working Group aiming at commercialising eVTOL aircraft in Brazil with Vertical Aerospace, Grupo Comporte and GOL. The Working Group has already conducted project familiarisation workshops with the Brazilian civil aviation authority Agência Nacional de Aviação Civil (ANAC) to permit the swift validation of the piloted, zero operating emissions and four-passenger VX4 aircraft. The VX4 is projected to have speeds of up to 200 mph, a range of over 100 miles, be near silent when in flight and offer a low cost per passenger mile. 

 

Dómhnal Slattery, CEO of Avolon commented: “The scale of our ambition for eVTOLs is reflected in our partnerships with some of the leading transportation and airport operators in Latin America. We are partnered with companies that share our ambition to materially reshape the commercial aviation market. Our objective is to deliver the infrastructure requirements to bring zero-emissions travel to Brazil mid this decade and revolutionise air travel in the region.”

 

Martin Eurnekian, CEO of Corporación América Airports, commented: “A new mobility ecosystem is arising and Corporación América Airports as a world leader in airport operations wants to be an agent of change in supporting the AAM implementation in those regions where we operate. With our expertise as airport operators in six countries in three continents along more than 20 years, we are committed to contributing with the development of the AAM ecosystem, in order to better connect people, goods and cultures and promoting a leaner, faster and more sustainable air transport.”

 

Paulo Kakinoff, CEO of GOL commented: "GOL completely bets on the expertise of CAAP in Advanced Aerial Mobility. Within reach, we have at hand a unique opportunity to unite the efforts of all parties involved to create a sustainable and safe operating ecosystem for eVTOL, with zero carbon emissions, both in Brazil and beyond. Constantly expanding in the regional segment, GOL is committed to including new and providential connectivity alternatives with this new air modal, based on its already extensive air network."

 

Stephen Fitzpatrick, Founder and CEO of Vertical commented: “I’m delighted that Vertical is partnering with Avolon, GOL, Grupo Comporte and CAAP to deliver critical eVTOL infrastructure in Brazil. It was in Brazil that I had the inspiration to begin Vertical Aerospace so it is incredible to see it becoming a reality there”.

 

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Avolon reports increased revenue and cash collections as borders reopen

Avolon, the international aircraft leasing company has just released details of its performance over the first quarter of this year which shows it had delivered $658 million of lease revenue and generated $320 million of net cash from operating activities.

The firm adjusted Net Income of $80 million excluding the impact of Russia, raised $300 million of drawn and revolving unsecured debt facilities, bringing total revolving debt capacity to $5.9bn at quarter-end.  This global leasing firm ended the quarter with total available liquidity of $5.4 billion, including $477 million of unrestricted cash and $4.9 billion of undrawn debt facilities;

Fleet Highlights

Owned and managed fleet of 592 aircraft at quarter-end, with total orders and commitments for 240 fuel-efficient, new technology aircraft.  Average owned fleet age of 6.0 years with an average remaining lease term of 6.9 years.  Delivered a total of 6 new aircraft to 4 customers and transitioned 11 aircraft to follow-on lessees.  Executed commitments for the sale and leaseback of 16 aircraft. Sold 3 owned aircraft and entered into letters of intent for the sale of a further 35 owned aircraft.

 

2022 Q1 and Russian situation impact

As disclosed in Q1 update, as of 31 March, Avolon had 10 owned aircraft located in Russia representing less than 1% of Avolon’s portfolio value net of security deposits and maintenance reserves;

 

During the quarter, Avolon recognized an impairment of $304 million in respect of our exposure to Russia, reducing the carrying value of the 10 owned aircraft to zero.  This impairment is partly offset by the net release of $43 million in other lease associated balances resulting in a $261 million net impact to the income statement; and as a result of this impairment, Avolon is reporting a net loss of $182 million for the quarter, and an adjusted net income, excluding the impact of Russia of $80 million for the period.

Dómhnal Slattery, Avolon CEO, commented: “As we reflect on our performance during the quarter, first and foremost our minds are with the people of Ukraine and those – both at home and abroad – that are impacted at this time. We are hopeful for a swift and peaceful end to the conflict.

 2022 FIRST QUARTER | FINANCIAL HIGHLIGHTS

 

INCOME STATEMENT ($ MILLION)	Q1 2022	Q1 2021	CHANGE
Lease Revenue	658	470	188
Net Loss	(182)	(83)	(99)
Adjusted Net Income/(Loss) (excluding Russia)	80	(83)	163

 

BALANCE SHEET ($ MILLION)	Q1 2022	FY 2021	CHANGE
Total Available Liquidity	5,372	6,256	(884)
Total Assets	30,521	30,984	(463)
Secured Debt / Total Assets	20%	20%	-
Net Debt to Equity	2.4x	2.4x	-

 

Given the impact of sanctions, we are recognising an impairment charge of $304 million in the first quarter in relation to our aircraft which were previously on lease in Russia. While we continue to make every effort to recover these assets and are pleased to have repossessed four aircraft, we are recognizing the full impairment this quarter, putting the financial impact of Russian sanctions firmly behind us.

Despite the headwinds of COVID-19 and Russian sanctions, we delivered our strongest quarterly underlying performance since the onset of the pandemic. Our improved year-on-year performance was largely driven by the rapid reopening of borders in Asia and increased flying globally, which supported a further improvement in the financial health of our customers and resulted in increased cash collection rates. This performance re-affirms the inherent strengths of our business and the absolute resilience of the aircraft leasing model, providing us with confidence in the outlook for the remainder of the year.”

 

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Freebird Airlines owner orders up to 100 VX4 eVTOL aircraft from Avolon

The international aircraft leasing company Avolon has confirmed that Freebird Airlines owner and Turkish aviation conglomerate Gözen Holding has committed to purchase or lease up to 50 VX4 eVTOL aircraft from Avolon, with the option to purchase or lease up to 50 additional aircraft. 

 Avolon and Gözen Holding will collaborate in a Working Group to identify and target local partners, research potential market opportunities, as well as infrastructure and certification requirements for UAM. The partnership will allow Avolon to leverage Gözen Holding’s expertise in airline operations, pilot training, airport handling and security, airline representation as well as digital platforms, while Gözen Holding will benefit from Avolon’s deep industry expertise and global platform of UAM Working Groups, which are active in Brazil (with GOL), Greenland (with Air Greenland), Japan (with Japan Airlines) and Southeast Asia (with AirAsia).

Dómhnal Slattery, CEO of Avolon commented: “Today marks an important milestone on our eVTOL journey, as we have now fully placed our VX4 order book with some of the leading international airlines and aviation companies all over the world. The opportunities to deploy the VX4 are enormous and, as is evident with our placement progress to date, zero-emissions eVTOL air travel will reshape the short-haul travel market. Our partnership with Gözen Holding will create a pioneer in UAM in Turkey, bringing sustainable air travel to the region."

Mekin Gözen, CEO of Gözen Holding, commented: “We are delighted to announce our partnership and VX4 order with Avolon. As an integral part of the Turkish aviation industry, we feel it is incumbent upon us to be at the forefront of the sustainability movement and that is why we identified Avolon, and Vertical’s VX4, as the zero-emissions eVTOL aircraft that will revolutionise air travel. With over 15 million people living in Istanbul, the city is consistently faced with congestion which hinders both the cities’ development and attractiveness as a tourist and business location. We strongly believe that the deployment of the VX4 will dramatically reshape Istanbul and the rest of Turkey. Our partnership with Avolon will see us create an eVTOL ecosystem in the country and is the first step in delivering sustainable air travel to the region, position it as a global leader.”

Stephen Fitzpatrick, Founder and CEO of Vertical commented: “We are delighted that Turkey has been added to the global destinations where the VX4 will fly. We look forward to welcoming Gözen into the Vertical family and continue to celebrate our growing partnership with Avolon."

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Air Greenland commits to purchasing or leasing from Avolon a fleet of Vertical Aerospace VX4 eVTOL aircraft

Avolon, the international aircraft leasing company, announces that it has partnered with Air Greenland, the flag-carrier for Greenland, to bring zero-emissions travel to the region and help tackle the issue of climate change.

Avolon and Air Greenland will partner to form a Working Group to assess the opportunity to commercialise zero-emissions air travel in the region. The Working Group will also collaborate to identify local infrastructure and certification requirements for eVTOL aircraft. As part of the agreement, Air Greenland will commit to purchasing or leasing a fleet of VX4 eVTOL aircraft, manufactured by Vertical Aerospace, from Avolon. Upon its introduction, the VX4 will be the most advanced and the safest eVTOL in the market and will be built to EASA safety certification standards – the most stringent global requirements and at the same level as commercial aircraft. The VX4 will be near silent when in flight and will have zero operating emissions, transporting four passengers and one pilot distances of over 100 miles at up to 200 miles per hour. The size of Air Greenland’s VX4 fleet will be defined at the conclusion of the Working Group’s assessment of the scale of the market opportunity.

Dómhnal Slattery, CEO of Avolon commented: “Since our initial order, we have seen airlines all over the world make a commitment to the zero emissions travel by selecting the VX4 aircraft as the first step in their decarbonisation journey. Today’s announcement with Air Greenland means we are taking zero-emissions travel to where climate change is having its most pronounced impact. We look forward to working with Air Greenland to bringing the zero-operating emission VX4 aircraft to where it matters the most.”

Jacob Nitter Sørensen, CEO of Air Greenland, commented: “Today’s announcement marks the start of our long-term sustainability journey, and we are excited about bringing zero emissions travel to our region. In Greenland, we see the effects of climate change every day and, as a company, we want to be at the forefront of the climate revolution. The VX4 aircraft will have many uses for Air Greenland and, through our partnership with Avolon, we look forward to welcoming our first travellers onboard in the near future – flying our guests to Ilimanaq Lodge to show the visible impacts that climate change is having on our country and planet.”

Stephen Fitzpatrick, CEO of Vertical Aerospace, commented: “We are delighted that Air Greenland has chosen the VX4 to bring zero emissions air travel to the region. This partnership is a significant first step in introducing sustainable air mobility to Greenland.”

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AirAsia Orders Vertical Aerospace’s Electric Aircraft From Avolon

Vertical Aerospace welcomed Avolon’s announcement this week that it will partner with AirAsia Aviation Group Ltd (AirAsia), Asia’s leading low-cost airline, to create a transformational ride-sharing platform in Southeast Asia, including a non-binding memorandum of understanding to lease a minimum of 100 VX4s, Vertical’s flagship electric aircraft.

As announced in June 2021, Avolon, the world’s second-largest aircraft lessor, pre-ordered 500 VX4s from Vertical to place with its global airline customers. This endorsement of the VX4 by AirAsia represents the aircraft’s first expansion into Southeast Asia.

With today’s announcement, Avolon has now placed 450 of its VX4 pre-orders to AirAsia, Japan’s JAL and Brazil’s Gol. Together, these airlines form a growing global community of transport operators that have ordered the VX4.

Vertical has directly agreed pre-orders or pre-order options with the likes of American Airlines, Avolon, Virgin Atlantic, Iberojet, Bristow Group and Marubeni resulting in a market-leading pre-order book by value totalling up to 1350 aircraft with a value of $5.4 bn.

The VX4 is a piloted four-passenger, zero operating emissions electric aircraft that is projected to fly at speeds of up to 200mph, over a 100-mile range. The VX4 is expected to be near-silent when in flight, and with a low cost per passenger mile, it will be an affordable option for passengers with a cost at a slight premium to a taxi.

AirAsia’s leasing arrangement through Avolon is the first placement or pre-order since Vertical was listed on the NYSE in December 2021.

AirAsia leases a minimum of 100 of Vertical Aerospace’s VX4 from Avolon

AirAsia joins Japan’s JAL and Brazil’s Gol in agreeing leases for the VX4 with Avolon

For more details see Avolon and AirAsia’s release on Avolon’s website here.

Stephen Fitzpatrick, CEO Vertical Aerospace, said "We are delighted that AirAsia is the latest leading airline committing to lease our zero operating emissions VX4 aircraft. AirAsia provides many fantastic opportunities to travel around some of the most beautiful and diverse countries in the world, and I am thrilled that we will be bringing zero emissions flight to people all across Asia."

Dómhnal Slattery, Avolon CEO, said “Tony Fernandes is an aviation pioneer who has built AirAsia into one of the leading airlines in the world and has now also created Southeast Asia’s fastest-growing Super App anchored on travel. We are delighted to partner with AirAsia who share our vision of revolutionising the future of air travel. We look forward to working with Tony, and the AirAsia team, on their eVTOL journey. Together we will develop a ride-sharing platform and bring the zero-emissions VX4 aircraft into service, positioning AirAsia as the operator of choice for sustainable air travel in the region.”

Tony Fernandes, CEO, Capital A, commented: “Innovation has always been in our DNA and using technology to look at more efficient and sustainable ways of doing things is a core focus across Capital A (formerly AirAsia Group). We are now much more than just an airline with over 20 products and services on our super app leveraging off each other including flights, hotels, food, retail, delivery, ride-hailing and more. I am truly excited about this partnership between Avolon and AirAsia and the potential for zero-emissions ultra-short-haul air travel in Southeast Asia. The digital era is now. In the VX4, we have identified what we believe will be the eVTOL aircraft of choice and we are thrilled to be the launch airline for the aircraft in Southeast Asia. We are also delighted to extend our long-standing relationship with Avolon, which has a proven track record of delivering for its customers and is in sync with our goal to become the leading one-stop travel and delivery platform in Asean.”

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AirAsia Aviation Group orders 100 VX4 eVTOL aircraft

Avolon, the international aircraft leasing company, announced this week that one of the world’s leading airline groups, AirAsia Aviation Group Limited (‘AirAsia’), has signed a non-binding memorandum of understanding to lease a minimum of 100 VX4 eVTOL aircraft from Avolon. These eVTOL aircraft will allow AirAsia to further revolutionise air travel by providing advanced air mobility to a whole new range of passengers, transforming how we all connect more efficiently in our everyday lives.

 

In addition to the eVTOL aircraft, Avolon, through its investment and innovation affiliate Avolon-e, will partner with AirAsia to commercialise zero-emissions eVTOL aircraft and develop an industry-leading urban air mobility (‘UAM’) platform in Southeast Asia. Avolon and AirAsia will form a working group to pursue local certification, research potential market opportunities and infrastructure requirements for UAM. AirAsia will also leverage its successful travel and lifestyle mobile app, the AirAsia Super App, to help support and build an eVTOL ride-sharing platform with Avolon.

 

Avolon VX4 Order book

In June 2021, Avolon ordered 500 VX4 eVTOL aircraft from Vertical Aerospace (NYSE: EVTL) (‘Vertical’), valued at US $2 billion. Since announcing that order, Avolon placed 250 VX4 aircraft with Gol and Grupo Comporte in Brazil, up to 100 aircraft with Japan Airlines in Japan, and a minimum of 100 aircraft with AirAsia. As a result, Avolon has now placed up to 90% of its initial order book, underlining the demand for VX4 aircraft from the world’s leading airlines.

 

Dómhnal Slattery, CEO of Avolon commented: “Tony Fernandes is an aviation pioneer who has built AirAsia into one of the leading airlines in the world and has now also created Southeast Asia’s fastest-growing Super App anchored on travel. We are delighted to partner with AirAsia who share our vision of revolutionising the future of air travel. We look forward to working with Tony, and the AirAsia team, on their eVTOL journey. Together we will develop a ride-sharing platform and bring the zero-emissions VX4 aircraft into service, positioning AirAsia as the operator of choice for sustainable air travel in the region.”

 

Tony Fernandes, CEO of Capital A commented: “Innovation has always been in our DNA and using technology to look at more efficient and sustainable ways of doing things is a core focus across Capital A (formerly AirAsia Group). We are now much more than just an airline with over 20 products and services on our super app leveraging off each other including flights, hotels, food, retail, delivery, ride-hailing and more. I am truly excited about this partnership between Avolon and AirAsia and the potential for zero-emissions ultra-short-haul air travel in Southeast Asia. The digital era is now. In the VX4, we have identified what we believe will be the eVTOL aircraft of choice and we are thrilled to be the launch airline for the aircraft in Southeast Asia. We are also delighted to extend our long-standing relationship with Avolon, which has a proven track record of delivering for its customers and is in sync with our goal to become the leading one-stop travel and delivery platform in ASEAN.”

 

Stephen Fitzpatrick, CEO of Vertical commented: "We are delighted that AirAsia is the latest leading airline committing to lease our zero operating emissions VX4 aircraft. AirAsia provides many fantastic opportunities to travel around some of the most beautiful and diverse countries in the world, and I am thrilled that we will be bringing zero emissions flight to people all across Asia."

 

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Avolon releases details of 2021 performance

Avolon, the international aircraft leasing company has released details of its performance for last year, which showed a net income for the year ended 31 December of $47 million.

 

2021 | FINANCIAL HIGHLIGHTS

 

INCOME STATEMENT ($ MILLION)	FY 2021	FY 2020	CHANGE
Lease Revenue	2,144	2,279	(135)
Net Income / (Loss)	47	(37)	84

 

BALANCE SHEET ($ MILLION)	FY 2021	FY 2020	CHANGE
Total Available Liquidity	6,256	6,867	(611)
Total Assets	30,984	30,838	146
Secured Debt / Total Assets	20%	25%	(5%)
Net Debt to Equity	2.4x	2.3x	0.1x

 

-       Net Income for the year ended 31 December of $47 million;

 

-       Delivered $2.1 billion of lease revenue and generated $895 million of net cash from operating activities in the year;

 

-       Total available liquidity of $6.3 billion at end of FY2021, including $775 million of unrestricted cash and $5.5 billion of undrawn debt facilities;

 

• Investment Grade rating with Stable outlook affirmed by S&P, Moody’s and Fitch;

 

• Upsized unsecured revolving facility by $1.1 billion to $4.3 billion, extended the maturity date from 2024 to 2026, bringing total revolving debt capacity to $5.8 billion at year end;

 

• Successfully raised $3.7 billion of new debt, at a historically low average cost of 2.5%;

 

-       Extended $2 billion of unsecured note maturities to 2027 and reduced the weighted average interest rate from 5.31% to 2.53%; and

 

• Ended the year with a secured debt to total assets ratio of 20%, a decrease of 5% in the year, and in excess of $17.5 billion of unencumbered assets.