Willis Lease Finance Corporation: record 2023 results

Willis Lease Finance Corporation (WLFC) has reported record results for the full year 2023, with total revenues of $418.6 million and a pre-tax income of $67.1 million. Aggregate, core lease rent and maintenance reserve revenues were also at an all-time record of $346.8 million, up 41% from 2022. A total of $67.1 million in pre-tax income was generated in 2023, drastically up from 2022’s $9.8 million. WFLC’s chief executive officer Austin Willis explained that “the results of WLFC’s strategic expansion into enhanced aviation services…. are evident in our earnings,” with the leasing, asset management and MRO services offered by the company having “established a virtuous cycle of growth and efficiency”. As of December 31 2023, $2,112.8 million of the company’s $2,223.4 million lease portfolio comprised of equipment held in its operating lease portfolio, with lease rent revenue increasing by 31.1% to $50.6 million. This increased lease rent revenue primarily reflects the number of engines acquired and placed on lease, including growth in utilization compared to that of the prior year. Although the sale of spare parts and equipment decreased to $20.4 million (compared to $27 million in 2022), WLFC explains that ‘the decrease in spare parts sales reflects variations in the timing of sales’. “By sourcing parts from our materials business, WLFC is able to minimise turn times in our MRO facilities and reduce the maintenance costs of our assets,” confirmed chief executive officer Austin Willis. He added that the efficiency of WLFC’s US and UK engine repair shops “ensure ELFC’s assets experience minimal downtime, keeping them on-lease and generating substantial revenues”. The added that the UK base maintenance facility will also be a crucial part of continuing to grow the company’s portfolio.