Aircraft lessor Avolon saw its net income rise 36 per cent in the first quarter of the year, with lease revenue hitting a quarterly record.
The company said net income was $145 million (€127 million) 145 for the first three months of the year, while lease revenue was up 10 per cent to $683 million. That was the highest quarterly performance in Avolon’s history.
Operating cash flow was $365 million, an 8 per cent rise year on year.
Avolon said it issued $850 million of senior unsecured notes due in 2030, with total available liquidity of $8.1 billion.
During the period Avolon acquired 115 aircraft, including closing the acquisition of Castlelake Aviation, which brought the delivered fleet to 639 owned and managed aircraft.
It also sold 34 aircraft during the three-month period ending the quarter with 66 aircraft agreed for sale.
At the end of the quarter, the company had an owned, managed and committed fleet of 1,096 aircraft, including orders and commitments for 457 new technology aircraft. The bulk of its order book – 97 per cent – has been placed for the next 24 months.
“Avolon delivered a strong performance in Q1 against all key financial and operating metrics. Our record lease revenue performance and growing profitability reflect the sustained demand for our assets,” said chief executive Andy Cronin.
“We believe that the industry’s supply dynamics will continue to be favourable. Our industry leading order book, deep customer relationships, and balance sheet strength position us to benefit from this sustained demand and drive our performance for future quarters.”
After the quarter end, the company said it raised $1.1 billion senior unsecured term loan, due in 2030, split between a drawn loan and a revolving credit facility. Seventeen banks participated in the facility, including seven new lenders.
“Avolon continues to source capital from a diverse range of public and private channels, and this facility strengthens our balance sheet and enhances our availability liquidity,” said Ross O’Connor, chief financial officer of Avolon.
“We were pleased to attract a broad range of participants, including several new banking relationships in Asia, reflecting the depth of demand for our credit among global banks.”
