2021 Full Year Results Avolon Returns to Profitability Amid Strengthening Recovery

Rhea-AI Summary

Avolon, an international aircraft leasing company, reported its FY 2021 financial results, highlighting a net income of $47 million compared to a loss of $37 million in FY 2020. Lease revenue decreased by $135 million to $2.1 billion. The company raised $3.7 billion in new debt at a record low average cost of 2.5% and ended the year with $6.3 billion in liquidity. Notably, Avolon announced significant fleet growth, with 592 aircraft managed, and made a groundbreaking $2 billion order for eVTOL aircraft.

Positive

• Net income of $47 million compared to a loss of $37 million in FY 2020.
• Successfully raised $3.7 billion of new debt at an average cost of 2.5%.
• Total available liquidity at $6.3 billion, including $775 million of unrestricted cash.
• Fleet grew by 4% to 592 aircraft, with significant orders for new technology aircraft.
• Investment Grade rating with a Stable outlook affirmed by S&P, Moody’s and Fitch.

Negative

• Lease revenue decreased by $135 million from $2.3 billion in FY 2020 to $2.1 billion in FY 2021.
• Total available liquidity declined by $611 million from $6.9 billion in FY 2020.

DUBLIN, Ireland--(BUSINESS WIRE)-- Avolon, the international aircraft leasing company, announces results for the full year, 2021.

2021 | FINANCIAL HIGHLIGHTS

INCOME STATEMENT ($ MILLION)	FY 2021	FY 2020	CHANGE
Lease Revenue	2,144	2,279	(135)
Net Income / (Loss)	47	(37)	84

BALANCE SHEET ($ MILLION)	FY 2021	FY 2020	CHANGE
Total Available Liquidity	6,256	6,867	(611)
Total Assets	30,984	30,838	146
Secured Debt / Total Assets	20%	25%	(5%)
Net Debt to Equity	2.4x	2.3x	0.1x

- Net Income for the year ended 31 December of $47 million;

- Delivered $2.1 billion of lease revenue and generated $895 million of net cash from operating activities in the year;

- Total available liquidity of $6.3 billion at end of FY2021, including $775 million of unrestricted cash and $5.5 billion of undrawn debt facilities;

- Investment Grade rating with Stable outlook affirmed by S&P, Moody’s and Fitch;

- Upsized unsecured revolving facility by $1.1 billion to $4.3 billion, extended the maturity date from 2024 to 2026, bringing total revolving debt capacity to $5.8 billion at year end;

- Successfully raised $3.7 billion of new debt, at a historcally low average cost of 2.5%;

- Extended $2 billion of unsecured note maturities to 2027 and reduced the weighted average interest rate from 5.31% to 2.53%; and

- Ended the year with a secured debt to total assets ratio of 20%, a decrease of 5% in the year, and in excess of $17.5 billion of unencumbered assets.

2021 | FLEET HIGHLIGHTS

- Owned and managed fleet grew by 4% to 592 aircraft at year end, with total orders and commitments for 232 fuel-efficient, new technology aircraft;

- Delivered a total of 49 new aircraft and transitioned 23 aircraft to a total of 30 customers;

- Added 14 new customers during 2021, for a total of 150 airline customers operating in 62 countries;

- Entered into sale and leaseback Letters of Intent commitments for 45 aircraft;

- Sold 24 aircraft in 2021, 5 of which were managed;

- Executed a total of 228 lease transactions comprising new aircraft leases, follow-on leases, lease extensions, and sale agreements;

- Average owned fleet age of 5.8 years with an average remaining lease term of 6.9 years;

- Partnered with IAI to become the launch customer for the IAI A330-300 P2F cargo conversion programme, with a commitment for 30 conversion slots between 2025 and 2028; and

- Ground-breaking $2 billion order for up to 500 VX4 eVTOL zero emissions aircraft, 70% of which were placed with airlines, such as GOL and Japan Airlines, at year end.

2021 SUSTAINABILITY REPORT

- Avolon announces the release of its inaugural sustainability report. The report presents an overview of our sustainability progress to date and our future commitments.

Dómhnal Slattery, Avolon CEO, commented: “While 2021 was another challenging year for the aviation industry, we saw clear evidence of recovery in both our own business, and among our airline customers, as the year progressed. While challenges remain in the short-term, and recovery will be uneven across markets, we have passed an inflection point and we are in the re-build phase for our industry.

We delivered across a number of key performance metrics in 2021 – returning to profitability, expanding our fleet, and further reducing both our cost of capital and secured debt on our balance sheet. As a result, we enter 2022 with a stronger business and significant liquidity; positioned to take advantage of opportunities as they arise.”

ENDS

About Avolon
Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon is 70% owned by an indirect subsidiary of Bohai Leasing Co., Ltd., a public company listed on the Shenzhen Stock Exchange (SLE: 000415) and 30% owned by ORIX Aviation Systems, a subsidiary of ORIX Corporation which is listed on the Tokyo and New York Stock Exchanges (TSE: 8591; NYSE: IX). Avolon is the world’s second largest aircraft leasing business with an owned, managed and committed fleet, as of 31 December 2021 of 824 aircraft.

Website: www.avolon.aero
Twitter: @avolon_aero

View source version on businesswire.com: https://www.businesswire.com/news/home/20220208005691/en/

Ross O’Connor

Head of Capital Markets

roconnor@avolon.aero

T: +353 1 231 5818

Jonathan Neilan

FTI Consulting

avolon@fticonsulting.com

M: +353 86 231 4135

Source: Avolon

FAQ

What was Avolon's net income for FY 2021?

Avolon's net income for FY 2021 was $47 million.

How much lease revenue did Avolon generate in FY 2021?

Avolon generated $2.1 billion in lease revenue for FY 2021.

What is Avolon's available liquidity at the end of FY 2021?

Avolon's total available liquidity at the end of FY 2021 was $6.3 billion.

What percentage of secured debt to total assets did Avolon achieve in FY 2021?

Avolon ended FY 2021 with a secured debt to total assets ratio of 20%.

What was the average interest rate for Avolon's new debt raised in 2021?

The average interest rate for Avolon's new debt raised in 2021 was 2.5%.