Avolon, a prominent global aviation finance company, has released a comprehensive update on its fourth-quarter (Q4) performance and outlook for the full year 2023 (FY). CEO Andy Cronin shared insights into the company’s achievements and future strategies in light of evolving market conditions.
Cronin expressed, “Strengthening market conditions allowed us to place our orderbook and used aircraft at accretive lease rates while underwriting US$4bn of new volume through the sale and leaseback market. Our balance sheet scale allowed us to order a further 200 new technology aircraft which strengthens our delivery pipeline and growth into the next decade.”
Highlights for the Full Year 2023:
- Ordered 200 new aircraft, including 100 A321neo, 80 737MAX, and 20 A330neo.
- Entered into letters of intent for the sale and leaseback of 51 new aircraft.
- Executed 147 lease transactions, comprising new aircraft leases, follow-on leases, and lease extensions.
- Delivered 43 new aircraft and transitioned 30 aircraft to 22 customers.
- Sold 31 aircraft in 2023 and ended the year with 25 aircraft agreed for sale.
- Owned, managed, and committed fleet of 1,035 aircraft at year-end, marking a 24% increase year-on-year.
- Raised US$4.9 billion of new debt across both public and private markets.
- Upsized unsecured revolving facility to US$4.8 billion, bringing total revolving debt capacity to US$6.1 billion at year-end.
- Published 2nd annual sustainability report, affirmed Sustainalytics rating at 16/’Low Risk,’ and supported a feasibility study into the production of Sustainable Aviation Fuel in Ireland in partnership with Boeing and ORIX Aviation.
Q4 Fleet Metrics & Financial Highlights:
- Placed an order for 100 A321neos and 40 737 MAX aircraft.
- Entered into letters of intent for the sale and leaseback of 14 aircraft.
- Executed 43 lease transactions, comprising new aircraft leases, follow-on leases, and lease extensions.
- Delivered 22 new aircraft and transitioned 4 aircraft to 11 customers.
- Sold 12 aircraft and entered into letters of intent for the sale of a further 14 aircraft.
- Added 2 new customers, bringing the total to 146 airline customers operating in 65 countries.
- Ended the quarter with an owned and managed fleet of 577 aircraft, with total orders and commitments for 458 fuel-efficient, new technology aircraft.
- Closed a private offering of US$400 million in senior unsecured notes due 2028.
- Repriced a US$2.3 billion Term Loan B, extending $650 million of the facility from 2027 to 2028.
Avolon’s strong performance and strategic initiatives underscore its commitment to growth and sustainability within the aviation finance sector.
About Avolon
Avolon is a leading global aviation finance company connecting capital with customers to drive the transformation of aviation and the economic and social benefits of global travel. We pride ourselves on our deep customer relationships, our collaborative team approach, and our fast execution. We invest with a long-term perspective, diversifying risk and managing capital efficiently to maintain our strong balance sheet. Working with 146 airlines in 65 countries, Avolon has an owned, managed, and committed fleet of 1,035 aircraft, as of 31 December 2023. www.avolon.aero