SMBC Aviation Capital reported a profit before tax of $275 million in the second quarter of the financial year, up 16% over the same period last year.
“SMBC Aviation Capital has delivered another strong set of results, with our profit before tax rising 16% on a year-on-year basis, driven by strong underlying market fundamentals and the continued optimisation of our portfolio through our sale and leasing activities,” said SMBC Aviation Capital CFO Aisling Kenny.
The lessor took delivery of $1.7bn of aircraft during the period, bringing its owned fleet size to 516 aircraft as of September 30, 2024. New technology aircraft now represents 70% of its portfolio.
Kenny commented: "Current market dynamics continue to present attractive opportunities to lease, re-lease and trade our assets, enabling us to lock in increasingly attractive terms with some of the strongest airline counterparties."
The company also signed $3.2bn of long-term leases over the last six months, including more than $1.1bn of new lease arrangements with customers in Asia. In addition, it also signed contracts with two major North American operators for a total of 35 A321neo aircraft.
“The ongoing enhancement of our portfolio will drive the profitability of our business for years to come, supporting our ability to deliver stable, long-term, fixed-income style returns to our shareholders,” Kenny continued.
The company raised $3bn in third-party financing since April 1, which has supported its expansion, including $1.9bn of drawn funding alongside $1.1bn of additional revolving credit facility capacity.