Avolon Announce Q1 2019 Profit of US$176 Million, up 16% Year on Year
Avolon, the international aircraft leasing company, announces results for the first quarter of 2019 (‘Q1’).
Lease revenue for the quarter was US$616 million;
Generated US$454 million of net cash from operating activities in the quarter;
Delivered US$176 million in profit for the quarter, an increase of 16% year on year;
At 31 March 2019, Avolon had US$16.5 billion future contracted rental cashflows; and
At quarter end, Avolon had US$5.3 billion of available liquidity in unrestricted cash, undrawn revolving credit facilities and undrawn secured and unsecured debt.
2019 First Quarter | Operating Highlights
Owned and managed fleet of 553 aircraft, with total orders and commitments for 398 new technology aircraft;
Executed a total of 8 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions;
Delivered a total of 12 new aircraft to 9 customers and transitioned 4 aircraft to follow-on lessees;
Sold 20 aircraft during the quarter including the sale of 10 regional aircraft; and
Total of 150 airline customers operating in 61 countries.
2019 First Quarter | Strategic Highlights
Closing of a private offering of US$1.1 billion, aggregate principal amount, of senior unsecured notes, upsized from an initial target size of US$750 million;
Closing of inaugural US$500 million three-year unsecured term loan facility which was upsized by over 60% based on the original launch size of US$300 million; and
Upsized unsecured revolving credit facility by US$125 million bringing the total facility size to over US$2.3 billion;
Post Quarter-End Updates
Closing of a private offering by Avolon of US$2.5 billion, aggregate principal amount, of senior unsecured notes, upsized from an initial target size of US$1.8 billion due to significant investor demand; and
Avolon’s corporate credit and senior unsecured notes ratings were upgraded to investment grade by Fitch Ratings, Moody’s Investors Service and S&P Global Ratings. Avolon now has a corporate rating of BBB-, Baa3, and BBB- respectively, all with stable outlook.
Dómhnal Slattery, Avolon CEO, commented: “The first quarter represents another strong quarter of performance for Avolon, highlighted by the delivery of US$176 million profit for the quarter. The strong financial performance is underpinned by another active quarter for aircraft trading – a testament to the continued hard work, focus and commitment of the Avolon team.
Since quarter end, we have successfully achieved an investment grade ratings profile - a key corporate objective for 2019 and well ahead of our expected timeframe. Our enhanced credit rating profile will provide us with even greater financial flexibility and access to a deeper pool of capital.”