Avolon Publishes Q4&FY Business Update

- Placed orders for 200 new aircraft including 100x A321neo, 80x 737MAX and 20x A330neo;

- Entered into letters of intent for the sale and leaseback of 51 new aircraft;

- Delivered, transitioned and sold a total of 104 aircraft;

- Raised US$4.9 billion of new financing and increased total revolving debt capacity to US$6.1 billion; and

- Investment Grade ratings affirmed by Moody’s, S&P, Fitch and KBRA with Fitch moving Avolon’s BBB- rating to Positive outlook.

Dublin | 9 January 2024: Avolon, a leading global aviation finance company, issues an update for the fourth quarter (‘Q4’) and 2023 full year (‘FY’).

Andy Cronin, CEO Avolon, commented:
“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.”

2023 Full Year Highlights

• 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, a 24% increase year on year;
• Raised US$4.9 billion of new debt across both the 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; and,
• 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 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, giving a total of 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; and,
• Repriced a US$2.3 billion Term Loan B, extending $650 million of the facility from 2027 to 2028.