Profits at aircraft leasing group SMBC Aviation Capital rose 16 per cent to more than €260 million in the six months to the end of September, new figures show.
Dublin-based SMBC buys aircraft from manufacturers Airbus and Boeing and leases them to airlines worldwide.
The company said it earned $275 million (€263 million) profit before tax in the six months ended September 30th, 16 per cent more than during the same period in 2023.
Chief financial officer Aisling Kenny said a strong market aided the group’s profit growth during the six months, the first half of its financial year.
“Current market dynamics continue to present attractive opportunities to lease, re-lease and trade our assets, enabling us to lock in increasingly attractive terms with some of the strongest airline counterparties,” she added.
Ms Kenny predicted that the ongoing enhancement of its fleet would drive profitability in coming years, allowing SMBC to deliver stable returns to its shareholders, Japan’s Sumitomo Mitsui Financial Group and Sumitomo Corporation.
‘Ireland is on a winning streak’: The outsider’s view of our economy
The Irish group owned 516 aircraft at the end of September, after taking delivery of $1.7 billion worth of jets over the previous six months.
New technology aircraft, more recently designed and developed planes that burn less fuel, making them cheaper to operate than older models, now comprise 70 per cent of its fleet, noted a statement.
Other highlights included signing contracts with two North American airlines to provide them with a total of 35 Airbus A321neo aircraft.
[ Has Fingal County Council found a solution to Ireland’s housing crisis?Opens in new window ]
Overall, SMBC signed long leases worth $3.2 billion during its first half, which included $1.1 billion worth of new deals with customers in Asia.
The company raised $3 billion in finance from third parties to support its expansion. This included $1.9 billion in drawn funding.
SMBC is among the top three players in its industry worldwide.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
