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Avolon Reports Strong Fleet Activity and Demand in 2024

Our Bureau - : Jan 10, 2025 - : 10:07 pm

Avolon, a global aviation finance company, has provided an update on its performance for the fourth quarter (Q4) and the full year of 2024, showcasing continued strong fleet activity and sustained demand for aircraft.

In 2024, the company acquired 45 aircraft and entered into agreements for the acquisition of an additional 138, including the purchase of Castlelake Aviation Limited. The company also sold 55 aircraft during the year and ended 2024 with 64 aircraft agreed for sale. By the year’s end, Avolon’s owned and managed fleet consisted of 558 aircraft, with commitments for a total of 571 aircraft. The company secured US$14 billion in new financing, which raised its total revolving debt capacity to US$7.2 billion. Avolon’s credit standing remained strong, with both Moody’s and Fitch maintaining positive outlooks and confirming its investment-grade ratings.

Throughout 2024, Avolon placed 30 aircraft from its order book, ensuring that its orderbook was 100% placed for the next 24 months. The company transitioned 23 aircraft to 25 customers and entered into agreements for the sale and leaseback of 37 aircraft. Furthermore, Avolon agreed to acquire a portfolio of 116 aircraft as part of its acquisition of Castlelake Aviation Limited. The total fleet, which includes both owned and managed aircraft as well as commitments, reached 1,129 by the end of the year, taking into account the Castlelake acquisition.

In terms of financing, Avolon completed US$14.0 billion in new debt transactions, with 79% of the amount being unsecured. This included the issuance of US$3.7 billion in senior unsecured notes, the upsizing of its unsecured revolving credit facility to US$5.8 billion, and the extension of its maturity to 2028. Additionally, the company secured a US$750 million new unsecured credit facility from a syndicate of banks based in the Middle East and India. Moody’s upgraded Avolon’s outlook to positive, and both Moody’s and Fitch maintained a positive outlook for the company’s financial position. Avolon also announced strategic partnerships, including one with Airbus to develop hydrogen-powered commercial aircraft and another with Air New Zealand to commercialise clean-tech aircraft, including the sale and leaseback of a BETA Alia CX300 electric cargo aircraft.

In Q4, Avolon continued its active fleet management, acquiring 12 aircraft and transitioning 5 aircraft to 10 customers. The company entered into agreements for the sale and leaseback of 17 aircraft and sold 29 aircraft, with letters of intent in place for a further 30. Additionally, Avolon raised US$1.5 billion through the public offering of senior unsecured notes due 2028 and 2030. The company also upsized its unsecured revolving credit facility to US$5.8 billion, extending its maturity to 2028.

The company’s focus on long-term investment, risk diversification, and strong financial performance has enabled it to maintain a solid balance sheet while driving the transformation of the aviation sector. With a fleet of 1,129 aircraft as of December 31, 2024, Avolon continues to work with 140 airlines across 59 countries, positioning itself as a key player in the aviation finance industry.

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