FLY Leasing Q2 Earnings Up on Higher Rental Revenue, Lease End Income



FLY Leasing reported net income of $24.3 million in Q2/18 compared to net income of $2.9 million for the same period in 2017. Net income for the six months ended June 30, 2018 was $34.0 million compared to net income of $7.9 million for the six months ended June 30, 2017.

FLY noted operating lease income of $89.2 million was up from $81.2 million for the same quarter in 2017. The company also sold two aircraft for an economic gain of $15.6 million and completed a new $574.5 million term loan facility with a consortium of lenders to partially finance the acquisition of 30 Airbus A320 aircraft from AACL.

At June 30, 2018, FLY Leasing had 85 aircraft on lease to 45 airlines in 27 countries.

“FLY is reporting a very strong second quarter based on a substantial increase in operating lease rental revenue and a combination of end of lease income and gains resulting from our aircraft trading,” said Colm Barrington, CEO of FLY. “Our quarterly net income of $24.3 million is as a result of the positive fleet activities of FLY over the previous quarters. Our earnings per share of $0.87 are a substantial increase from the same quarter last year, reflecting improvements in our business and share repurchases undertaken over the last few years.

“The acquisition of the 55 aircraft portfolio that we announced in February is proceeding as planned,” Barrington added. “We have started transferring aircraft to FLY and expect that the initial stage of the transaction, comprising the acquisition of 34 Airbus A320 aircraft and seven CFM engines, will be completed in the third quarter. As contemplated in connection with the portfolio acquisition, after quarter end we completed the sale of approximately 1.3 million shares at $15.00 per share to affiliates of Onex Corporation and the management of BBAM, demonstrating their continued support of FLY. As we acquire these aircraft and deploy our capital over the course of the year, we expect to see FLY generate stronger shareholder returns.”


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