25 Oct 2022

2022 THIRD QUARTER RESULTS


Avolon reports $141 million of net income in Q3

Dublin | 25 October 2022: Avolon, the international aircraft leasing company, announces results for the third quarter (Q3) of 2022.

2022 THIRD QUARTER | FINANCIAL & BUSINESS HIGHLIGHTS

INCOME & CASHFLOW ($ million)Q3 2022Q3 20219M 20229M 2021
Lease Revenue5465181,7431,598
Operating Cashflow278237903549
Net Income1416(33)(14)
Net Income (excluding Russia)1416227(14)

BALANCE SHEET ($ million)Q3 2022FY 2021CHANGE
Total Available Liquidity (inc. contracted sales)6,7816,387394
Total Assets30,02030,984(964)
Secured Debt / Total Assets20%20%-
Net Debt to Equity2.3x2.4x(0.1x)

  • Net Income for the three months to 30 September was $141 million and $227 million for the nine months to 30 September (excluding the impact of Russia);
  • Recognised $546 million of lease revenue and generated $278 million of net cash from operating activities in the quarter;
  • Ended the quarter with total available liquidity and contracted sales of approximately $6.8 billion, including $5.7 billion of undrawn debt facilities;
  • Ended the quarter with $16 billion of unencumbered assets and net leverage of 2.3x;
  • Agreed a landmark transaction with Malaysia Airlines for the financing of 20 A330-900neo aircraft valued at over $2 billion;
  • Upsized unsecured revolving credit facility by $0.2 billion bringing the total facility size to $4.6 billion and executed a $0.7 billion term financing facility maturing 2029; and
  • Post quarter end, Avolon announced the appointment of Ross O’Connor as Chief Financial Officer, Felipe Campos as Chief Operating Officer and Jim Morrison as Chief Risk Officer.

2022 THIRD QUARTER | FLEET HIGHLIGHTS

  • Executed a total of 54 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions;
  • Sold 13 owned aircraft and 4 engines during the quarter and entered into Letters of Intent for the sale of 7 owned aircraft;
  • Delivered a total of 4 aircraft to 3 customers and transitioned 7 aircraft to follow-on lessees;
  • Owned and managed fleet of 568 aircraft at quarter end, with total orders and commitments for 265 fuel-efficient, new technology aircraft;
  • Average owned fleet age of 6.4 years with an average remaining lease term of 6.8 years; and
  • Ended the quarter with a total of 149 airline customers operating in 63 countries.

Andy Cronin, CEO, commented: “The third quarter contained a number of key milestones for our business, including delivering our strongest and most profitable quarter post pandemic, a landmark aircraft financing transaction with Malaysia Airlines, and the successful completion of our leadership transition.  We also raised close to $1 billion of new capital and saw all of our key financial metrics strengthen during the quarter, further enhancing our balance sheet.

As the recovery in international and long-haul traffic gains momentum, we are seeing robust demand at attractive lease rates for our young, fuel-efficient aircraft. This market backdrop, our balance sheet strength and our strong cashflow profile positions Avolon to continue to drive an improving earnings performance in the period ahead.”

For Further Information Please Contact

Avolon

Doug Keatinge
Head of Communications
+353 86 0374163
[email protected]

Joe Brennan
SVP, Investor Relations
+353 1 231 5800
[email protected]

FTI Consulting

Jonathan Neilan
+353 1 765 0886
[email protected]

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