Avolon, the global aviation finance company, has reported strong financial results for the first quarter (Q1) of 2025, with net income rising 36% year-on-year to US$145 million. Lease revenue reached US$683 million, a 10% increase compared with Q1 2024.
The company generated robust operating cash flow of US$365 million, up 8% year-on-year. During the quarter, Avolon also issued US$850 million in senior unsecured notes due in 2030 and, following the quarter's close, raised an additional US$1.1 billion through a senior unsecured term loan also maturing in 2030.
Avolon's liquidity position remains strong, with US$8.1 billion in total available liquidity, including US$1 billion in unrestricted cash and US$6.4 billion in undrawn debt facilities. Its balance sheet is bolstered by an unsecured to total debt ratio of 70%, a net debt-to-equity ratio of 2.5 times and US$20 billion in unencumbered assets.
The company's positive credit trajectory continued, with Moody's placing Avolon on review for an upgrade and both Moody's and Fitch maintaining a positive outlook on its current ratings (Baa3 and BBB- respectively).
Fleet Developments
Avolon acquired 115 aircraft in Q1, including the completed acquisition of Castlelake Aviation Limited, expanding its delivered fleet to 639 owned and managed aircraft. The company sold 34 aircraft during the quarter and had 66 aircraft agreed for sale by the end of March.
Avolon's total owned, managed, and committed fleet stood at 1,096 aircraft, which includes 457 next-generation aircraft on order or under commitment. Avolon placed 15 aircraft from its orderbook in the quarter, and now has 97% of its orderbook placed for delivery over the next 24 months.
