Profits at Irish aircraft lessor Avolon soared last year with the company reaching a record $2 billion in operating cash flow as the business continued to grow.
The company’s net profit rose by 79 per cent to $608 million (€583 million), boosted by a net $150 million payout from insurance claims relating to aircraft previously leased to Russian airlines.
Excluding the impact of that settlement, the adjusted net income was up 35 per cent year-on-year.
Lease revenue rose 4 per cent year-on-year to more than $2.5 billion.
Over the 12 months, total available liquidity was $11.6 billion, including $3.1 billion of unrestricted cash and $7.2 billion in undrawn debt facilities.
Over the year, Avolon acquired 45 new aircraft and transitioned 23 aircraft to customers.
It also entered into agreements for the sale and leaseback of 37 new aircraft, sold 55 and ended the year with 64 aircraft agreed for sale.
It placed 30 aircraft from its order book during the year, ending 2024 with its order book fully placed for the next 24 months.
The company also closed the acquisition of Castlelake Aviation after the reporting period, integrating the company and adding 116 aircraft to Avolon’s owned and committed fleet.
By the end of the year, Avolon had an owned, managed and committed fleet of 1,129 aircraft including the Castlelake fleet.
Avolon chief executive Andy Cronin said 2024 was a successful year for the company.
“We delivered growth across all our key financial and operational metrics, including net income growth of 79 per cent and a record $2 billion of operating cash flow,” he said. “Our in-demand assets and order book of new-technology aircraft position us well to capitalise on an attractive market backdrop, enhancing our earnings profile and supporting our path towards higher credit ratings.”
Speaking after Avolon published its results on Thursday, Ross O’Connor, chief financial officer, said that the Irish aircraft lessor was watching US President Donald Trump’s tariff threats carefully.
“It could have an impact in terms of supply chains,” he acknowledged. “We’ll have to see how it plays out.”
Mr O’Connor cautioned that it was difficult to predict what would happen.
He also pointed out that Boeing, one of the two big manufacturers from which Avolon buys aircraft, was one of the largest exporters from the US.
Meanwhile he said that the Irish company was continuing to perform well, with strong demand likely to increase leasing rates this year.
Production from Boeing and European rival Airbus continues to lag demand for aircraft, a situation Avolon believes will persist for the rest of the decade, although it does see some pressures easing.
Mr O’Connor also said that Avolon was working on moving its triple b minus credit rating “up a notch”.
He noted that the Castlelake Aviation deal was straightforward to complete as it essentially involved Avolon taking on the company’s aircraft.
Avolon is a global leader in aircraft leasing, along with Irish rivals AerCap and SMBC Aviation Capital. The Republic is a centre for the industry worldwide.
