Avolon Sees 17% Increase in Net Income in Q3/19

International aircraft lessor Avolon reported its results for Q3/19, including a profit of $161 million for the quarter.

Other financial highlights from Q3 included:

  • Total revenue of $654 million
  • Generation of $612 million in net cash from operating activities in the quarter
  • $16.4 billion in future contracted rental cashflows
  • An upsize to the company’s unsecured revolving credit facility of $225 million, bringing the total facility size to over $3 billion, an increase of $1.24 billion or 69% of total size since Q3/2018
  • An extension of the availability period of the revolving credit facility by 21 months to April 2024 and a reducing in the facility margin by 50 basis points to 1.25%
  • A declared dividend of $285 million in line with stated dividend policy to maintain investment grade financial metrics
  • $6.3 billion in available liquidity in unrestricted cash, undrawn revolving credit facilities and undrawn secured debt

Operational highlights from Q3 included:

  • An owned and managed fleet of 527 aircraft, with total orders and commitments for 387 new technology aircraft
  • A total of 21 lease transactions executed in the quarter, comprised of new aircraft leases, follow-on leases and lease extensions
  • A total of eight new aircraft delivered to five customers and four aircraft transitioned to follow-on lessees
  • 10 aircraft sold during the quarter, three of which were managed assets, and one additional managed aircraft disposed of attributable to an insured total loss
  • A total of 152 airline customers operating in 61 countries.

“We have delivered a strong performance this quarter with a 17% increase in net income to $161 million. This result is testament to the hard work of every member of the Avolon team operating from our 7 offices globally,” said Dómhnal Slattery, Avolon CEO. “It is a challenging industry backdrop, but we continue to be nimble and are well positioned for all market conditions. Our investment grade rating continues to drive down the cost of our debt and further improve our already strong credit metrics. We have $6.3 billion of available liquidity to sustain the growth of our business and support the financing needs of our airline clients around the world.”

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