Avolon first quarter net income nearly doubles to $107 million

Avolon's net income has increased 91% to $107 million in the first quarter of 2024, up from $56 million in the first quarter of 2023. Its total revenues increased 7.4% to $663.1 million, with lease revenues up 3.7% to $620.7 million. The increase in lease revenues was primarily attributed to an increase to its lease rate factor and cash collections during the quarter. Its total expenses had marginally increased by 1.9% to $565.1 million. Its operating cashflow was up 9% to $606 million. ""The first quarter of 2024 demonstrates the upward financial trajectory of our business, headlined by our increasing profitability,"" said Avolon CEO Andy Cronin. Its available liquidity at the end of the quarter was at $6.6bn. It raised $1.7bn of debt across both the public and private markets with $1.15bn senior unsecured notes due 2029, $325 million unsecured term loans, and upsized its unsecured revolving credit facility by $110 million. Its net debt to equity at the end of the quarter remained at 2.2X, a secured debt to total assets ratio of 23% and $16bn of unencumbered assets. Principal payments due on its debt obligations amount to $2.5bn in the next 12 months to March 31, 2025. The company executed 39 lease transactions, comprising of new aircraft leases, follow-on leases and lease extensions. It delivered nine new aircraft and transitioned three aircraft to a total of seven customers. The company also sold nine aircraft and entered letters of intent for the sale of a further 17 aircraft, as well as entering into letters of intent for the sale and leaseback of seven aircraft. By the quarter's end it owned and managed a fleet of 577 aircraft. 98% of its orderbook is in place for the next 24 months. The company had commitments to purchase 457 aircraft (including one aircraft under ADA), with an estimated aggregate commitment of $30.4bn as of the quarter's end. $3.7bn of its commitments are due through to March 31, 2025. Cronin added: ""Our large orderbook provides us with a clear competitive advantage in an undersupplied market. Coupled with our prudent balance sheet and liquidity position, we are in a strong position to drive further profitability and generate long-term shareholder value.""