Barrington’s Fly Leasing to spend €480m

Fly Leasing

, the Irish-based aircraft financier led by

Aer Lingus

chairman

Colm Barrington

, plans to spend about

€480 million on expanding its business next year.

Fly published results showing that assets, revenues and profits increased over both the first nine months, and the third quarter of the year, and that it is close to reaching its 2014 growth target of 15 per cent.

Speaking to analysts following the results’ publication, Mr Barrington, who is chief executive, said that in broad terms, then Fly intends to grow by a further 15 per cent next year.

On that basis, he added, $600 million (€480 million) “would be the range of our expected spend in 2015”.

His estimate is based on the company having assets of about $4 billion. On September 30th, they were $3.7 billion while Fly had $212.8 million cash. The figures excluded $400 million the business raised through a bond issue in early October.

Between aircraft it has bought and committed to buying, Fly will have spent $1.04 billion on boosting its fleet by the end of the year. It has already purchased 18 aircraft for $755 million and ordered six more for $283 million.

“We have grown our fleet to 121 aircraft with the acquisition of five aircraft in the third quarter, maintaining our average fleet age at just over eight years and increasing our average lease term to approximately five years,” Mr Barrington said.

Fly will pay a 25 cent a-share third-quarter dividend next week bringing the total paid this year to 75 cent. Its chief executive said it planned to continue with what he described as attractive dividends while employing much of its capital on growing the business.

Its third quarter results show the company earned net income during the period of $15.4 million on total revenues of $105.4 million.

Net profits for the first nine months of 2014 increased 4 per cent to $40.6 million from $39 million during the same period last year. Revenues rose 7.7 per cent to $306.4 million from $284 million during the first nine months of last year.

Of the 2014 total, rents for the aircraft it leases accounted for $284.6 million. In the third quarter, revenues from operating leases were $105 million. Fly also generated turnover from aircraft sales and interest. Annualised rent for its aircraft was running at $412 million by the end of September.

“The demand for aircraft remains strong as worldwide air traffic continues to increase,” he said.

At the end of September, all of its 121 craft were leased.

Fly is based in Dublin and listed on the New York Stock Exchange.