Avolon reported “strong” fleet activity for 2024, citing high demand for aircraft as a core driver.
For the full year 2024, the company acquired 45 aircraft and transitioned 23 aircraft to 25 customers. The company also placed 30 aircraft from its orderbook 100% placed for next 24 months. In addition, the company entered into agreements for the sale and leaseback of 37 aircraft. Avolon sold 55 aircraft in the year, as well as 64 aircraft agreed for sale.
By the end of the year, the company owned, managed, and committed fleet of 1,129 aircraft at year end, including the proposed acquisition of Castlelake Aviation. The acquisition will facilitate the acquisition of Castlelake's portfolio of 116 aircraft.
During the year, the company contracted $14bn of new debt financing, of which 79% was unsecured. This included the issuance of $3.7bn of senior unsecured notes; upsized unsecured revolving credit facility to $5.8bn and extended maturity to 2028; $750 million new unsecured credit facility with a syndicate of seven banks predominantly in the Middle East and India; and repriced and extended its $2.3bn term loan B facility.
The company's outlook was also upgraded by Moody's in 2024 to positive, joining the positive outlook from Fitch Ratings.
For the fourth quarter, the company acquired 12 aircraft and transitioned five aircraft to 10 customers. Avolon entered into agreements for the sale and leaseback of 17 aircraft. In addition, it sold 29 aircraft and entered into letters of intent for the sale of a further 30 aircraft.
Avolon also signed an agreement with Air New Zealand to partner on clean technology aircraft on January 8, 2025. The companies will partner on research to support the commercialisation of electric aircraft and other novel propulsion technologies such as battery hybrid and hydrogen.
“Lessors have an important role to play in supporting the commercialisation of clean tech aircraft to help the aviation sector achieve its net zero ambitions,” said Avolon CEO Andy Cronin.
The partnership builds upon Avolon's other partnerships with Airbus' ZEROe Project and its investment in vertical takeoff and landing (VTOL) aircraft developer Vertical Aerospace.
Air New Zealand chief financial officer Richard Thomson commented: “This partnership with Avolon is another important step in our Next Generation Aircraft programme of work. While only a small trial, it will allow us to understand what the financing of this programme could look like in the future so we're incredibly grateful for Avolon leaning in and supporting us on our journey.”
The agreement also includes the signing a letter of intent (LOI) for the sale and leaseback of a BETA Alia CX300 electric cargo aircraft.
The conventional takeoff and landing (CTOL) aircraft, designed by BETA Technologies, can carry up to 650kg of cargo per flight for the airline. The aircraft is due for delivery next year. Air New Zealand will operate the Alia CX300 between Wellington and Blenheim through its partnership with New Zealand Post.