Plea to the EU
13th March 2012
Fly Leasing has reported a net loss of $8.1 million, or $0.26 loss per share, for the third quarter of 2020. This compares to net income of $51.7 million, or $1.67 per share, for the same period in 2019. The decrease in net income is primarily due to the non-recognition of revenue for certain lessees and no aircraft sales in the current quarter.
Net income for the nine months ended September 30, 2020 was $39.6 million, or $1.30 per share, compared to net income of $150.7 million, or $4.72 per share, for the nine months ended September 30, 2019.
“Despite the challenges of the COVID-19 pandemic, we are encouraged by improved domestic air travel demand in the quarter and the recent news of successful vaccine trials, which we believe will drive a recovery in air travel demand in 2021,” said Colm Barrington, Chief Executive Officer of FLY. “Total cash collected improved from the prior quarter and we have begun to receive repayment of some deferred rents. A number of our lessees have received government support, which is helping the airlines meet their payment obligations.”
On October 15, 2020, FLY closed a new $180 million term loan to be secured by 11 narrowbody aircraft. The proceeds will be used for general corporate purposes, including the repayment of debt.
“To buttress the balance sheet, we recently raised a new $180 million term loan,” said Barrington. “FLY continues to have a historically low debt to equity ratio, no orders for aircraft or other capital commitments and no significant near-term refinancing requirements. FLY also benefits from BBAM’s decades of experience and expertise in navigating industry cycles, which is a truly invaluable resource at this time.”
FLY’s net debt to equity is 2.1x, compared to 2.3x at December 31, 2019, and it had access to $285.1 million of unrestricted cash and cash equivalents at the end of the third quarter. FLY’s total assets were $3.5bn, including investment in flight equipment totalling $3bn.
At September 30, 2020, FLY had 86 aircraft and seven engines in its portfolio. FLY's aircraft and engines are on lease to 39 airlines in 24 countries.
The average age of the portfolio, weighted by net book value of each aircraft and engine, was 8.3 years, with an average remaining lease term of 4.9 years, also weighted by net book value. FLY's portfolio had contracted annualised rental revenue of approximately $316 million at quarter end.