SMBC Aviation Capital has posted $200 million profit before tax in its H1 2019 financial results, up 19% from the $168 million experienced in the corresponding period last year.
The group also posted $597.4 million in lease revenue and other operating income, up 13% from the $530 million reported in the same period last year.
The group said it was continuing its progress in transitioning to new technology aircraft with its assets valued in excess of $12.4 billion, up 10% from last year where it posted $11.2 billion, this comprised of 237 owned aircraft and pre-delivery payments.
It was announced that 42.2% of portfolio transitioned to new technology assets, up 30.6% from September 2018 with upward trend set to continue, the company said.
During the period, the group delivered 17 aircraft, comprising two A320s, one A321, 13 A320 NEOs and one B787. A signed letter of intent to place 21 aircraft from our order book and the sale of 16 owned aircraft, with an average age of 7.3 years.
The company signed contracts or letters of intent to sell a further 15 aircraft with an average age of 10.7 years, with an average age of fleet now 4.2 years.
Commenting on the performance, Peter Barrett, CEO of SMBC Aviation Capital, said: “Successful implementation of our strategy and relentless focus on building long-term customer relationships has resulted in growth of our leasing business and continued interest from trade investors in acquiring our assets. This has allowed us to deliver a strong financial performance in the first half of the year, demonstrating our ability to deliver profitable growth.
"Our differentiation continues to be the strength of our portfolio alongside the support and collaboration with our shareholder which enables us to provide a diverse product offering to a growing number of customers in the aviation industry.
"The global aviation industry is continuing to face some challenges. Our young, fuel-efficient fleet and close collaboration with the aircraft manufacturers, combined with a strong track record over 18 years of delivering a disciplined strategy, means we are confident that we can continue to deliver further growth now and into the future and respond flexibly to changing market dynamics.”