Dublin-based aircraft leasing company Avolon has reported higher lease revenues and net income for the third quarter of this year.
Avolon said its lease revenue of $677m for the third quarter was up 15% year on year, while its net income rose by 24% to $120m.
The company also reported EBITDA of $645m for the three month period, up 8% on the same time last year, and it said it generated $536m of cash from operating activities.
During the third quarter, Avolon sold 11 planes, ending the quarter with 59 planes for sale. It also delivered nine new aircraft and transitioned five aircraft to a total of 11 customers.
Avolon now has a customer base of 141 airlines operating in 62 countries.
It said it ended the quarter with an owned and managed fleet of 577 aircraft, with total orders and commitments for 442 aircraft. This does not include the proposed acquisition of Castlelake Aviation Limited.
Under the terms of a recently proposed deal with Castlelake Aviation, Avolon is to buy a portfolio of 105 aircraft, two engines and 13 aircraft commitments.
The average age of the aircraft is 4.7 years with 70% of the portfolio invested in new technology aircraft.
Avolon said the estimated $1.2 billion net purchase price for the deal will be funded from its existing sources of liquidity.
The deal is expected to close in the first quarter of 2025 - subject to customary closing conditions.
Andy Cronin, Avolon's CEO, said the company continued its strong financial performance from the previous quarter, delivering total revenues of $733m and 24% growth in net income to $120m.
"Our positive earnings momentum will be further strengthened by the Castlelake acquisition, adding a complementary portfolio of assets that will drive our earnings profile," he said.
"Our aircraft sales activity and operating cash generation support our strong balance sheet and liquidity position, driving further positive credit ratings momentum," he added.
