Aviation Finance Company Avolon Reports 6% Increase in Lease Revenue for 2023

Aviation finance company Avolon reported lease revenue of $2.473 billion in 2023, an increase of 6% year over year. In addition, the company recorded operating cash flow of $1.751 billion (up 45% year over year), adjusted EBITDA of $2.51 billion (up 6%) and net income of $339 million, up from $9 million in 2022.

The company also had total liquidity of $7.228 billion, as of Dec. 31, 2023, marking a 30% increase year over year. The company’s total liquidity included $690 million of unrestricted cash and $6.2 billion of undrawn debt facilities. Additionally, the company had a net debt-to-equity of 2.2 times, a secured debt-to-total assets ratio of 23% and more than $16 billion of unencumbered assets.

In terms of aircraft activity, Avolon ordered 200 new aircraft, including 100 A321neo, 80 737MAX and 20 A330neo, during 2023, while underwriting $4 billion of new volume through the sale and leaseback market. The company also:

  • 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 the company 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 aircraft
  • Affirmed a Sustainalytics rating at 16/’Low Risk’ and supported a feasibility study into the production of sustainable aviation fuel in Ireland in partnership with Boeing and ORIX Aviation

“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,” Andy Cronin, CEO of Avolon, said. “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.”

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Terry Mulreany
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