Engine specialist Willis Lease Finance Corporation reported first quarter pre-tax profit and total revenues of $8.5 million and $81.6 million, respectively – figures that were 21% lower than 2019.
The Company’s first quarter 2020 pre-tax results were impacted by both lower revenue in the core leasing business, which was influenced by a reduction in reported asset usage and reduced spare parts sales, and the one-time expense associated with our Willis Engine Structured Trust II re-financing. Aggregate lease rent and maintenance reserve revenues were $66.9 million for the first quarter of 2020.
“The Company experienced another quarter of profitability but on lighter revenues primarily driven by the decline in global flight traffic, which led to lower maintenance revenues and spare parts sales,” said Charles Willis, chief executive. “We recognise that the COVID pandemic is putting a lot of strain on our lessee customer base and we do not see that correcting quickly. We therefore remain highly focused on protecting our business while continuing to deliver for our customers."
As of March 31, 2020, the Company's $1.698 billion equipment held for operating lease portfolio consisted of 260 engines, 10 aircraft and 11 other leased assets. As of December 31, 2019, the Company's $1.651 billion equipment held for operating lease portfolio consisted of 263 engines, 10 aircraft and 11 other leased assets.