Dubai Aerospace Enterprise (DAE) has reported profit before exceptional items in the six months ended June 30, 2022 increased by 186% to US$140.1 million, with cash flows from operating activities up by 36% to US$678.5 million. Exception items include the exceptional write-off before tax of US$576.5 million related to the loss of control of 19 aircraft that are currently in Russia.
DAE reports that is liquidity ratio remains “exceptionally strong” at 667%; with available liquidity of US$2.7 billion. In the reporting period, DAE made bond repurchases of US$77 million.
DAE acquired 34 aircraft in the period, adding eight aircraft to its owned portfolio and 26 to its managed book. The lessor sold 27 aircraft in the six month period, eight from its owned book and 26 managed aircraft. DAE signed lease agreements, extensions and amendments for 85 aircraft during the period.
DAE also signed a new aircraft management mandate to acquire and manage up to US$1.75 billion of aircraft assets.
Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “Our financial results are reflective of the strength of DAE’s franchise despite emerging macroeconomic headwinds. Air travel demand continues to be strong and all leading indicators continue to point to a strong summer season for our airline customers. Supply side constraints, particularly among airport ecosystems, as well as inflationary concerns have not dented demand; however, is likely going to be a key constraint as airlines globally work towards returning to 2019 levels.
DAE Capital continues to be active in the secondary trading market, where we have committed approximately US$750 million in the first half of the year to acquire assets for both our owned portfolio and our managed portfolios. We have maintained a robust pace of asset sales in the current market environment. We have further cemented our position as a leading global aircraft asset manager by securing a mandate to acquire up to US$1.75 billion of additional aircraft assets.”
DAE Engineering recorded its highest half year revenues in history. We remain on course to capture summer southern hemisphere widebody maintenance with new additions from South America joining our already exceptional customer base.”