Aircraft lessor Avolon has committed to buying an additional 40 Boeing 737 Max jetliners, valued at more than $4 billion (€3.6 billion), increasing the size of its fleet to more than 870 aircraft by 2030.
In a trading update on Thursday, the Dublin-based company reported a 30 per cent decline in its adjusted net first-quarter income compared with the same period last year, from $80 million (€72.4 million) to $56 million (€50.7 million). The adjusted figure excludes the impact of impairment and write-off of assets after Russian carriers kept 10 of its aircraft in the country after the war in Ukraine broke out last year.
Avolon reported a net loss of $182 million (€164.7 million) for the first three months of 2022 after writing off the leases, but has since bounced back.
It generated lease revenues of $599 million (€542 million) over the period and $310 million (€280.5 million) of net cash from its operating activities. The group owned and managed a fleet of 578 aircraft at quarter end, with total orders and commitments for 252 fuel-efficient, new technology aircraft.
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Avolon has also committed to ordering 40 “fuel-efficient” Boeing 737 Max planes for delivery between 2027 and 2030, it said in a statement.
“This commitment with Boeing underlines our confidence in the positive momentum in the aviation market, and increases our portfolio of young, modern, fuel-efficient aircraft,” said Avolon’s chief executive Andy Cronin. “With strong demand for our new technology order book, and delivery slots at a premium, it strengthens and extends our delivery profile with Boeing.
“This commitment will also support our airline customers who are looking to plan beyond the robust post-Covid traffic recovery and prepare for future growth, while also reducing their carbon emissions.”
