Published on November 1st, 2020 | by Mark Dwyer0
Avolon Publishes Q3 2020 Results
Dublin based aircraft lessor Avolon posted a $41 million loss against third quarter lease revenue of US$504 million. During the quarter the company delivered four new aircraft, sold one and transitioned one aircraft to a follow-on lessee. A total of 55 lease transactions were executed comprising new aircraft placements, follow-on leases, lease extensions and 15 sale and leaseback transactions. At the end of Q3, Avolon owned and managed a fleet of 551 aircraft with total orders and commitments for 286 new aircraft. It had 145 airline customers in 61 countries.
Dómhnal Slattery, Avolon CEO, commented: “The third quarter represented another quarter of strong liquidity, active portfolio management and, encouragingly, a continued improvement in our revenue collection rate. Our capital position continues to be one of the strongest in the sector. Our capital strength and depth of industry relationships means we are well placed to take advantage of growth opportunities – where they align with our prudent approach to risk management and strict underwriting discipline. We will continue to be nimble and opportunistic in coming quarters but will balance our appetite for opportunistic growth with maintaining a strong financial position, which is a hallmark of the Avolon franchise.”
The financial highlights included:
- Strong liquidity position at quarter end, with total liquidity in excess of US$5.7 billion;
- Third quarter lease revenue of US$504 million;
- Net loss of US$41m for third quarter;
- Closed a private offering of US$650m senior unsecured notes with a 2026 maturity;
- Prudent capital structure – with net debt to equity of 2.3x at end of Q3;
- Lease revenue collection rate trended upwards during Q3;
- Aggregate increase in trade receivables and deferred revenue asset implies year to date lease revenue collection rate of 83%; and
- 24 customers started repayments as scheduled in Q3; four additional customers remain in arrears or are subject to an extension of their deferral period.