April 28 2023  |  Airline & Terminal News

Avolon releases its 2023 first quarter results

By Reedah Hayder

Andy Cronin, CEO, Avolon

Aircraft leasing company Avolon today releases its first quarter results for 2023, revealing a strong performance driven by increased demand for aircraft and rising lease rates.

The company delivered $599 million in lease revenue and reported a net income of $56 million, a marked improvement on last year's Q1 net loss of $182 million. The company also generated $310 million in net cash from operating activities and ended the quarter with $5.5 billion in total available liquidity.

“Avolon benefitted from rising lease rates during the quarter as global passenger traffic continued to grow and the reopening of the Chinese market provided an important catalyst for increased travel in the region. Demand for aircraft remains strong, with high levels of leasing activity and a continued shortage of aircraft. This is supporting residual values and driving demand for lease extensions from airlines unable to access new deliveries,” said Andy Cronin, Avolon CEO, in an April 27 press release. “Our commitment with Boeing for 40 new 737 MAX aircraft reflects our confidence in the long-term outlook for the aviation sector. With our low leverage and high levels of liquidity, we are well positioned to take advantage of future opportunities.”

Avolon's fleet also saw growth, with a total of 578 aircraft owned and managed at the end of the quarter, along with orders and commitments for 252 fuel-efficient, new technology aircraft. The company executed 31 lease transactions during the quarter, including new leases, follow-on leases, and extensions, and delivered nine new aircraft to 13 customers. Avolon also added three new customers during Q1, bringing its total to 147 airline customers operating in 65 countries.

As well, Avolon today announced its order of 40 Boeing 737 MAX aircraft, scheduled for delivery between 2027 and 2030 and valued at over $4 billion. Once this order is finalized, Avolon's fleet will rise to 870 aircraft.

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