Avolon has reported "strong aircraft demand and rising lease rates" in the first quarter of 2023 as revenue reached $599 million.
The lessor's made a $56 million profit after the period saw it generate $310 million from operations and end up "with total available liquidity of $5.5bn", which included $403 million of unrestricted cash and $5.1bn in undrawn debt facilities.
“Avolon benefitted from rising lease rates during the quarter as global passenger traffic continued to grow and the reopening of the Chinese market provided an important catalyst for increased travel in the region," said chief executive Andy Cronin.
The Irish leasing business said it ended the quarter with net debt to equity of 2.3 times, a secured debt to total assets ratio of 21% and $16bn in unencumbered assets.
During the period Avolon executed, with a syndicate of 10 banks, a $810 million term financing facility maturing in 2030.
By the end of March 2023, the company's owned and managed fleet came to 578 aircraft, with orders and commitments for 252 fuel-efficient, new technology aircraft to come. The average owned-fleet age was 6.3 years with an average remaining lease term of 6.9 years.
During the period Avolon carried out 31 lease transactions, delivering nine new aircraft and transitioning nine to 13 customers, while agreeing letters of intent for the sale and leaseback of 12 aircraft. It sold two aircraft and agreed letters of intent for the sale of a further 13.
Three new customers were added during the quarter, meaning Avolon has 147 airline customers with operations in 65 countries,, with its orderbook "fully placed for 2023 and 82% placed to the end of 2024"
"Demand for aircraft remains strong, with high levels of leasing activity and a continued shortage of aircraft. This is supporting residual values and driving demand for lease extensions from airlines unable to access new deliveries," Cronin said.