Avation PLC (LSE:AVAP) told investors it is trading in line with market expectations.
The aircraft leasing company in a statement added that it had received a first-time B1 Corporate Family Rating and B2 issuer rating from Moody’s with a stable outlook.
Passenger air travel rose 8% in the year to 30 April, with international travel up 10.8% year-on-year. In the Asia-Pacific region, where most of Avation’s fleet operates, revenue passenger kilometres grew 10.6%.
“The company has demonstrated consistent performance and a rapid recovery from the COVID-19 era,” executive chair Jeff Chatfield said.
“Avation has an order book 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.
The company reported increased aircraft values and lease rates.
Supply chain delays have contributed to a record order backlog of around 17,000 aircraft.
Avation’s fleet includes 33 aircraft leased to 16 airlines in 14 countries. This includes 14 narrowbody jets, 17 ATR turboprops and 2 widebody aircraft.
Since June 2024, two ATR 72-600 aircraft have been sold and two were delivered, generating around USD 20.30 million in net proceeds. An 11-year-old A320-200 was acquired and is leased to Etihad.
The company expects to receive around $33 million from the sale of a Boeing 777-300ER to Philippine Airlines. A new lease of an ATR 72-600 to Clic Air is expected to begin soon. One more ATR is scheduled for transition to PNG Air in Q4 2025.
Avation has 10 ATR 72-600 aircraft on order for delivery through Q2 2028. The first two are placed with airlines in Japan and South Korea. It also holds rights to acquire 24 more ATR 72-600s by June 2034.
Avation has reduced secured debt by $25 million and repurchased $21.6 million of its 2026 Notes. The outstanding balance on the Notes is now $310 million. The company had $125 million in cash as of 4 July 2025.
Rent arrears and customer receivables were reduced by $9.5 million, with a collection rate of 103%.