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Avation remains on track in 2025 as aircraft leasing remains strong

4th Jul 2025 11:50

(Alliance News) - Avation PLC on Friday said it is on track to meet full-year expectations in 2025, against a favourable aviation market backdrop that is benefiting from constraints on supply.

The Singapore-based commercial aircraft leasing company said all 33 of its aircraft are currently leased for an average term of 3.9 years. The weighted average age of its fleet is 8.4 years, Avation said.

The company also pointed out its first B1 corporate family rating from Moody's and B2 issuer rating.

According to Avation, market conditions have supported aircraft valuations and lease rates for both new and secondhand planes over the past year. Supply chain issues have created a lag in new plane deliveries to 30% behind peak levels, and a "record" backlog of 17,000 planes.

The company has orders for 10 of ATR 72-600 planes, which are scheduled for delivery between the fourth-quarter of 2025 and second-quarter of 2028. The first two of these planes are on long-term leases to airlines in Japan and South Korea. Avation has purchase rights for 24 more planes to be delivered before June 2034.

Additionally, the firm plans to sell one of its Boeing 777-300ER planes, currently leased to Phillippine Airlines. The company estimated this will generate net cash of USD33 million, which will be used either to reduce debt or to reinvest in the firm's narrowbody aircraft fleet.

Avation said a delayed lease to Colombian carrier Clic Air is expected to start "imminently".

As of Friday, Avation's cash balance is USD125 million. The firm said it continued to recover arrears, which have reduced by about USD9.5 million since June 30. After paying back some of its loans in the last year, Avation reported a USD310.0 million outstanding balance, which it is planning to refinance.

Chair Jeff Chatfield commented: "The company has demonstrated consistent performance and a rapid recovery from the Covid-19 era. Avation has an orderbook of new aircraft deliveries and purchase rights underpinning the future for the business model over the next ten years. We are also considering further narrowbody aircraft acquisitions in the secondary market."

Avation shares were 0.8% higher at 157.71p each on Friday morning in London for a market capitalisation of GBP105.9 million.

By Holly Munks, Alliance News reporter

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.


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