Published on November 1st, 2020 | by Mark Dwyer


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.

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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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