Willis Lease Finance Corporation (Willis) has reported third quarter total revenues of $105.7 million and pre-tax earnings of $20.3 million.
For the three months ended September 30, 2023, the aero engine lessor’s aggregate lease rent and maintenance reserve revenues were $91.3 million and spare parts and equipment sales were $3.4 million. Willis reported increased total revenues in the third quarter when compared to the prior year period, primarily due to an increase in its core lease rent and short-term maintenance revenues.
“I am pleased to see how the Company and its employees continue to perform this year,” said Charles F. Willis, Executive Chairman. “Having recently travelled to over twenty countries, visiting many airline, MRO and OEM heads, the conclusion reached is that our products are in demand. Further, as Executive Chairman it is also encouraging to see how well our succession plan and growth strategies are progressing. The Board and I look forward to the future, working with our employees and stakeholders.”
Lease rent revenue increased by $14.1 million, or 35.6%, to $53.6 million in the third quarter of 2023, compared to $39.5 million in the third quarter of 2022. The increase is due to an increase in the number of engines acquired and placed on lease, including an increase in utilization compared to that of the prior period. Maintenance reserve revenue was $37.7 million in the third quarter of 2023, an increase of 84.4%, compared to $20.4 million in the same quarter of 2022.
“Rent and utilization continue to trend favourably,” said Austin C. Willis, Chief Executive Officer. “High levels of travel, supply chain constraints, and OEM manufacturing issues are all working to support strong demand.”
“We are very pleased that our customers continue to turn to us to innovate and deliver so they can focus on flying,” said Brian R. Hole, President. “We are built to deliver what and when others cannot.”
Willis disclosed that spare parts and equipment sales decreased to $3.4 million in the third quarter of 2023, compared to $7.0 million in the third quarter of 2022.
The lessor booked a gain on sale of leased equipment of $0.8 million in the third quarter of 2023, reflecting the sale of one engine and one airframe. Gain on sale of leased equipment was $0.9 million in the third quarter of 2022, reflecting the sale of two engines.
Willis maintained $270.0 million of undrawn revolver capacity at September 30, 2023.