Avolon ended the third quarter of 2022 as the most profitable quarter post-pandemic with a net income of $141 million, $546 million of lease revenue, and $278 million of net cash from operating activities in the quarter. Avolon reported a total net income for the nine months of 2022 to be $227 million.
Avolon signed a landmark transaction with Malaysia Airlines for the financing of 20 A330-900neo aircraft valued at over $2 billion and upsized the unsecured revolving credit facility by $0.2 bn bringing the total facility size to $4.6 bn and executed a $0.7 bn term financing facility maturing 2029.
Andy Cronin, CEO, said: “The third quarter contained several 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 our key financial metrics strengthen during the quarter, further enhancing our balance sheet.”
Avolon executed a total of 54 lease transactions comprising new aircraft leases, follow-on leases, and lease extensions; sold 13 owned aircraft and 4 engines and entered Letters of Intent for the sale of 7 owned aircraft. Avolon delivered four aircraft to three customers and transitioned seven aircraft to follow-on lessees. By the Q3 end, Avolon had owned and managed a fleet of 568 aircraft with total orders and commitments for 265 fuel-efficient, new technology aircraft;
“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,” Andy added.
Avolon ended the quarter with total available liquidity and contracted sales of approximately $6.8 bn, including $5.7 bn of undrawn debt facilities; $16 bn of unencumbered assets, and net leverage of 2.3x. So far Avolon has a total of 149 airline customers operating in 63 countries.