FLY Leasing reported a Q4/16 net loss of $63.8 million driven primarily by a $92 million non-cash impairment charge taken on three older, out-of-production wide-body aircraft. For the full year 2016, FLY reported a net loss of $29.1 million on lower operating lease revenue of $313.6 million compared to $429.7 million a year earlier and the aforementioned impairment charge.

The following highlights on full year 2016 were excerpted from the news release:

• Completed $559 million of acquisitions
• Sold 27 aircraft at a premium to book value
• Total investment in flight equipment at year-end was $2.8 billion
• On December 31, 2016, FLY’s 76 aircraft were on lease to 42 lessees in 27 countries.
• FLY’s lease utilization factor was 100% for the full year 2016.

“In 201616 we continued to transform FLY’s fleet, which is now the youngest in the company’s history and among the youngest in the industry, at an average age of 6.2 years,” said Colm Barrington, CEO of FLY. “We sold 27 aircraft during the year – primarily mid-life models – at a premium to book value. We invested in newer equipment, acquiring 10 aircraft during the year. In addition, we continued to repurchase shares, buying back a total of 3.4 million shares or approximately ten percent of outstanding shares at the beginning of the year.

“We entered 2017 with ample liquidity that provides us with the opportunity to grow our portfolio and to continue our share buyback program. We set a target of acquiring $750 million of new aircraft in 2017 and have the financial firepower to exceed this level if we find the right opportunities to enhance our portfolio and shareholder value.”

“We are encouraged by the resilience of global air traffic and the continued profitability of the airline sector,” added Barrington. “There is a continuing strong market for leased aircraft, evidenced by the fact that our fleet is fully utilized and that we have no aircraft available for lease until the end of the year.”