Income at Dublin-based aircraft lessor Avolon increased last year, despite its withdrawal from Russia, the company said.
Net income for 2023 was $339 million, with $110 million in the fourth quarter of the year. That was a $330 million increase on 2022, or 34 per cent when the impact of the company’s withdrawal from Russia was taken into account. Lease revenue was up 6 per cent to $2.5 billion, Avolon said.
Operating cashflow was a record $1.75 billion, up 45 per cent on the prior year.
The company ended the year with an owned, managed and committed fleet of 1,035 aircraft. Throughout the year the company ordered 200 new aircraft, and executed 147 lease transactions including new aircraft leases, follow-on leases and lease extensions.
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It also added 10 new customers, to bring it to a total of 146 airline customers operating in 65 countries.
“Robust demand for aircraft, combined with continued undersupply, provided a tailwind to placing our order book and used aircraft at attractive lease rates, which will drive future profitability. Record operating cashflow and a sharp increase in net income are testament to our success in 2023,” chief executive Andy Cronin said.
“The orders made for 200 new technology aircraft during the year strengthen our delivery pipeline and provide embedded growth to support our customers into the next decade. Against an attractive market backdrop, Avolon has an industry-leading platform and robust balance sheet to drive future earnings growth.”
At the end of the year, Avolon had total available liquidity of $7.2 billion, including $690 million of unrestricted cash and $6.2 billion of undrawn debt facilities. Avolon last year raised $4.9 billion of debt across both the public and private markets, and post quarter end, it issued $1.15 billion of senior unsecured notes maturing in 2029.
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