Published on February 24th, 2019 | by Mark Dwyer


30% Rise in Profits at Avolon

Dublin based Avolon, the international aircraft leasing company, reported record annual profits after tax of US$717 million for 2018. Other highlights from the 2018 full year results include:

  • Lease revenue for the year was US$2.6 billion; an increase of 10% year on year;
  • Generated US$2.2 billion of net cash from operating activities in 2018;
  • Delivered US$717 million in profit for the year, an increase of 30% year on year;
  • Declared and paid shareholder dividend of US$490 million;
  • At year end Avolon had US$16.6 billion future contracted rental cashflows; and
  • Ended 2018 with US$5.7 billion of available liquidity in unrestricted cash, undrawn revolving credit facilities and undrawn secured and unsecured debt.

Avolon CEO Dómhnal Slattery

Dómhnal Slattery, Avolon CEO, commented: “2018 represents another excellent year for Avolon during which we successfully executed on a number of key strategic objectives – a testament to the hard work, focus and commitment of the Avolon team. It was a record year for the business in which we generated US$2.2 billion of net cash from operating activities and delivered a 30% increase in profit.

The addition of ORIX as a shareholder, coupled with the increase in our unencumbered assets and reduction in our secured debt, represents significant progress towards securing our Investment Grade rating – a key corporate objective for 2019.”

Some of the 2018 Operating highlights at Avolon were:

  • Delivered a total of 33 new aircraft, including the world’s first A330neo;
  • Executed a total of 153 lease transactions and contracted sale agreements for 130 aircraft;
  • Sold 87 aircraft with total proceeds from disposal of property, plant and equipment of US$2.2 billion in 2018 with a further 58 aircraft held for sale at year end, representing US$1.2 billion of aircraft related assets;
  • Increased asset management activity with 49 managed aircraft at year end;
  • Fleet utilization was 99.5% for 2018;
  • Continued strong progress on placement of new order pipeline with 100% of committed fleet placed through to the end of 2019 and 80% placed through to the end of 2020;
  • Owned, managed and committed fleet increased by 7% year on year to 971 aircraft at the end of 2018; and
  • Average owned fleet age of 5.0 years with an average remaining lease term of 6.8 years.

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About the Author

Mark is an airline pilot flying the Boeing 737 for a major European airline. In addition he is also a Type Rating Instructor, Type Rating Examiner and Base Training Captain on the B737. Outside of commercial flying Mark enjoys flying light aircraft from the smallest 3 Axis microlights up to heavier singles. He is also an instructor and EASA Examiner on single engines and a UK CAA Examiner. He flies the Chipmunk for the Irish Historic Flight Foundation (IHFF). Mark became the Chairman of the National Microlight Association of Ireland (NMAI) in 2013 and has overseen a massive growth in the organisation. In this role he has worked at local and national levels. In 2015, Mark won ‘Upcoming Aviation Professional Award’ at the Aviation Industry Awards sponsored by the IAA. Mark launched this website back in 2002 while always managing the website, he has also been Editor and Deputy Editor of FlyingInIreland Magazine from 2005 to 2015.

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