SMBC Aviation Capital reports record financial year results

Aircraft leasing company SMBC Aviation Capital, has posted its results for the financial year ended March 31, 2024.

The company reported a record profit before tax of US$460 million, marking a 35% increase year-on-year, before exceptional items. Including insurance settlement proceeds of US$756 million, the profit before tax rose to US$1.2 billion.

Lease revenue grew by 41% year-on-year, reaching US$1.9 billion, up from US$1.3 billion. Adjusted operating cash flow increased by 33% year-on-year, totalling US$2 billion.

Over the past 12 months, SMBC Aviation Capital agreed US$5 billion of long-term leases, including US$3.5 billion of aircraft from direct order books and US$1.5 billion from sale-and-leasebacks. The company delivered US$2.1 billion worth of aircraft to 18 different customers.

This financial year was a record for sales, with 42 aircraft traded, representing US$1.7 billion of assets. The order book was further expanded with additional Airbus A320neo-family and Boeing 737MAX-family aircraft, bringing the total to 271 narrow-body aircraft on order. New-technology aircraft now constitute 67% of the portfolio.

Peter Barrett, CEO of SMBC Aviation Capital, commented:

“SMBC Aviation Capital has recorded a strong set of results for FY23, including record profit before tax, demonstrating how we are unlocking the value of the large-scale, strategically timed asset growth we have executed.

Our performance has been achieved through a disciplined approach to capital allocation and asset acquisition allowing us to take advantage of opportunities presented by the current strong market backdrop.

Our strategic asset selection means that in the current supply constrained market there is significant demand for our assets as airlines and investors look to secure the types of aircraft that we own.

SMBC Aviation Capital's strong balance sheet, consistent shareholder support, considered, long-term strategy as well as the quality of our portfolio and order book, means we are well positioned to drive long-term growth and stable returns.”