Aircraft lessor Avolon lost $41 million (€35m) in the third quarter as revenues fell.
The Irish-headquartered company said on Thursday that lease revenues dropped more than 20 per cent in the three months to September 30th, to $504 million from $651 million during the same period in 2019.
Avolon lost $41 million during the quarter, from a profit of $161 million during the same three months last year. The loss included a $42 million charge for impairment and amortisation.
The company buys aircraft from manufacturers, including Airbus and Boeing, and leases them to airlines around the world.
The group had $5.74 billion in cash available to it at the end of the quarter, against $6.3 billion 12 months earlier. Total assets grew to $32 billion from $28.4 billion.
Avolon raised $650 million in senior unsecured debt, which is repayable in 2026, during the period.
The company completed 55 new lease agreements over the three months. These included placing new aircraft with airlines, lease extensions and follow-ons, and 15 sale and lease-back deals.
Avolon deferred lease payments for many airline customers earlier this year as Covid-19 grounded much of the world’s aircraft. On Thursday the company confirmed that 24 clients had restarted lease payments as scheduled in the third quarter, while four airlines remained in arrears or had their deferrals extended.
Dómhnal Slattery, Avolon chief executive, said revenue collection had improved during the third quarter. “Our capital position continues to be one of the strongest in the sector,” he added.
