Avolon reports robust financial performance for 2023

Avolon, an aviation finance company, has achieved a net income of US$110 million for the fourth quarter of 2023 and for the full year, it recorded a net income of US$339 million. This marks a significant increase of US$330 million compared to FY22, representing a 34% growth when excluding the impact of Russia in FY22.

The company also reported a record operating cash flow of US$1.75 billion, showing a 45% increase compared to FY22. Lease revenue experienced a 6% growth, reaching US$2.5 billion.

Debt-wise, Avolon successfully raised US$4.9 billion across public and private markets, resulting in a total available liquidity of US$7.2 billion at year-end. This liquidity includes US$690 million of unrestricted cash and US$6.2 billion of undrawn debt facilities.

Post quarter-end, the company issued US$1.15 billion of senior unsecured notes maturing in 2029. The financial structure is reflected in a net-debt to equity ratio of 2.2-times, a secured debt to total assets ratio of 23% and over US$16 billion of unencumbered assets.

In terms of business highlights for 2023, the company ordered 200 new aircraft, including 100 A321neos, 80 737MAXs and 20 A330neos. It underwrote US$4 billion of new volume through the sale-and-leaseback market, executed 147 lease transactions and delivered 43 new aircraft while transitioning 30 aircraft to 22 customers.

Additionally, Avolon sold 31 aircraft and ended the year with 25 aircraft agreed for sale. The customer base expanded with the addition of ten new customers, bringing the total to 146 airline customers operating in 65 countries. The year concluded with an owned, managed and committed fleet of 1,035 aircraft, including orders and commitments for 458 fuel-efficient, new-technology aircraft.

Furthermore, credit ratings from Moody's, S&P, Fitch and KBRA affirmed the company's investment grade status, with Fitch upgrading Avolon's BBB- rating to a positive outlook. (£1.00 = US$1.26 at time of publication).