Profit at aircraft lessor Avolon fell by 26 per cent in the second quarter compared to the previous year while the value of its assets climbed marginally to $28.3 billion.
The Dublin-headquartered leasing company said profit dipped to $185 million for the three month period in which it generated $423 million of net cash from operating activities.
Avolon, the world’s third largest aircraft lessor, owned and managed a fleet of 530 aircraft by the end of the second quarter and had total orders and commitments for 393 new technology aircraft. By the end of June, it also had $16.6 billion of future contracted rental cashflows.
“Our strong cashflow generating capabilities and consistent aircraft trading performance, coupled with our capital raising activities, resulted in Avolon ending the quarter with $6.4 billion of total available liquidity,” said Dómhnal Slattery, Avolon chief executive.
The company’s net debt stood at 2.1 times equity by the end of the quarter.
At the Paris Air Show in June, Avolon signed a deal for 140 engines valued at $2 billion (€1.78 billion) at list prices to power a portion of its burgeoning Airbus A320 neo portfolio.
The lessor ordered 140 Leap-1A engines from CFM International, a US joint venture between GE Aviation and Safran Aircraft Engines.
