SINGAPORE - Avation PLC (LSE: AVAP), a commercial passenger aircraft leasing company, conducted its Annual General Meeting today, announcing sustained growth in the air travel sector and strategic fleet and financial management updates.
According to the International Air Transport Association (IATA), the air passenger market has seen a 7.1% increase in revenue passenger kilometers up to October 2024, surpassing historical highs. Avation has capitalized on the market's constrained aircraft supply by selling and extending leases at profitable rates. In recent transactions, Avation sold two ATR 72-600 aircraft and extended a lease for an Airbus A320 at a higher rate than previously set.
Avation's current fleet consists of 32 commercial aircraft leased to 15 airlines across 13 countries, with an average fleet age of 7.8 years and an average remaining lease term of 3.8 years. The company has successfully placed three returning leased aircraft with new lessees for 2025 and has no further lease returns until 2026. Additionally, Avation has secured leases for two new ATR72-600 aircraft to be delivered in 2025 to airlines in Japan and Korea.
Financially, Avation has made significant progress in collecting arrears from the Covid era, reducing total arrears by approximately $6.4 million since June 30, 2024. The company has also issued new shares, raising GBP 4.8 million, and has repurchased 7.8 million shares to hold in treasury, reflecting confidence in the value of its stock.
Avation's cash and bank balances have increased by $18.6 million since June 30, 2024, to $136.5 million as of December 13, 2024. The company has $336.8 million in secured bank loans and $331.6 million in outstanding Senior PIK Toggle Notes due in October 2026.
Executive Chairman Jeff Chatfield expressed confidence in the company's positioning for growth and shareholder value enhancement through share repurchases and dividend reinstatements. He emphasized Avation's readiness to benefit from industry dynamics, including the placement of ten new ATR aircraft ordered for delivery between 2025 and 2028.
This article is based on a press release statement from Avation PLC.
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