Avolon 2019 First Quarter Lease Revenue Down 4% Y/Y

International aircraft lessor Avaolon reported its results for the first quarter of 2019, including lease revenue of $616 million, down 4% from the same quarter in 2018. However, its profit of $176 million for the quarter was up 16% year over year.

Other first quarter highlights included:

  • Gain on disposal of PPE / finance lease receivables of $83 million, up 938% from $8 million in Q1/2018
  • Profit for the quarter of $176 million, up 16% from $152 million in Q1/2018
  • Total available liquidity of $5,348 million, up 3% from $5,212 million in Q1/2018
  • Total assets of $27,490 million, down 3% from $28,273 million from in Q1/2018
  • $454 million of net cash from operating activities in the quarter

As of March 31, 2019, Avolon had $16.5 billion future contracted rental cashflows

At quarter end, Avolon had $5.3 billion of available liquidity in unrestricted cash, undrawn revolving credit facilities and undrawn secured and unsecured debt. 2019

First quarter operating highlights included:

  • Owned and managed fleet of 553 aircraft, with total orders and commitments for 398 new technology aircraft
  • Executed a total of 8 lease transactions in the quarter comprising new aircraft leases, followon leases and lease extensions
  • Delivered a total of 12 new aircraft to 9 customers and transitioned 4 aircraft to follow-on lessees
  • Sold 20 aircraft during the quarter including the sale of 10 regional aircraft
  • Total of 150 airline customers operating in 61 countries.

Dómhnal Slattery, Avolon CEO, commented, “The first quarter represents another strong quarter of performance for Avolon, highlighted by the delivery of $176 million profit for the quarter. The strong financial performance is underpinned by another active quarter for aircraft trading – a testament to the continued hard work, focus and commitment of the Avolon team.

“Since quarter end, we have successfully achieved an investment grade ratings profile – a key corporate objective for 2019 and well ahead of our expected timeframe. Our enhanced credit rating profile will provide us with even greater financial flexibility and access to a deeper pool of capital.”

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