Dubai Aerospace Enterprise (DAE) has reported total revenue for the six months ended June 30, 2021 of US$613.4 million, compared to US$675.9 million in the year-ago period. DAE posted an adjusted pre-tax profit of US$67.3 million, down from US$131.9 million for H1 2020.
DAE’s operating cash flow was US$498.5 million, a slight uplift on H1 2020 with US$432.2 million.
DAE’s unsecured debt as a percentage of total debt increased from 62.6% at the year end to 70.8% for the six months ended June 30, 2021. The lessor has available liquidity of US$4.1bn, compared to US$2.7bn at year-end 2020.
DAE’s fleet utilization remains high at 99.1%, compared to the year-end 2020 figure of 98.2%, and its
collection rate increased to 89% from 83% in H1 2020.
DAE’s credit outlook was revised up to ‘Stable’ by Moody’s and Fitch.
During the half year period, DAE committed to purchase 26 and sell 27 aircraft.
DAE redeemed approximately US$456 million of high coupon debt in March 2021 and announced for early redemption an additional US$1.25 billion in August 2021.
Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “Our financial results for the first half of 2021 reflect strong origination of new technology, fuel-efficient narrow body aircraft and a robust environment for sales of aircraft assets. We placed a direct order with Boeing for up to 15 737-8 MAX aircraft to meet our customers’ requirements for modernizing and upgrading their fleets.
"Recovery in passenger air traffic demand is progressing well but not evenly in all jurisdictions and for all aircraft types. The uneven nature of vaccine deployment geographically and the emergence of virus variants remains a barrier to a predictable return to full normalcy. We remain optimistic and vigilant. Our balance sheet stays strong with high levels of capital adequacy and exceptional levels of available liquidity.”