During the first quarter of the year Avolon posted a net income of $145 million, an increase of 36% when compared to the same three-month period of the year prior.
The lessor also reported its highest lease revenue for a quarterly period, totalling $683 million. This represents an increase of 10% on figures posted from 2024. Total available liquidity amounted to $8.1bn at the end of the quarter, including $1bn of unrestricted cash and $6.4bn in undrawn debt facilities.
Avolon generated an operating cashflow of $365 million during the quarter, up 8% on the first quarter of last year.
“Our record lease revenue performance and growing profitability reflect the sustained demand for our assets,” said Andy Cronin, Avolon CEO. “We believe that the industry’s supply dynamics will continue to be favourable. Our industry leading orderbook, deep customer relationships, and balance sheet strength position us to benefit from this sustained demand and drive our performance for future quarters.”
During the three-month period the company acquired 115 aircraft, including aircraft closed in the acquisition of Castlelake Aviation, increasing its delivered fleet to 639 owned and managed aircraft.
Avolon completed its acquisition of Castlelake Aviation on January 17, 2025. The transaction, that was first announced on September 13, 2024, includes a portfolio of 106 leased aircraft along with commitments for ten new-technology jets.
The company sold a total of 34 aircraft during the quarter and ended the period with 66 aircraft agreed for sale. By the end of the March quarter, Avolon had an owned, managed and committed fleet of 1,096 aircraft, including orders and commitments for 457 new technology jets.
In addition to disclosing first quarter results, the company also noted the closing of a new $1.1bn senior unsecured facility. The facility is split equally between a drawn loan and a revolving credit facility, with a tenor of five years. Ross O’Connor, Avolon CFO, said that the facility strengthens the lessors’ balance sheet and enhances availability liquidity.
A total of 17 banks participated in the facility, including seven new lenders to Avolon. The mandated lead arrangers on the facility were: DBS Bank, CaixaBank, Commonwealth Bank Group, Truist Financial, Cathay United, Allied Irish Banks, and Sumitomo Mitsui Trust Bank.