-- adds CFO comments, share price --
Aircraft leasing firm Avation (LON:AVAP) is predicting a “significant” increase in second-half revenues as additional planes are delivered.
The company, which specialises in single aisle jets and turbo-props such as the Boeing 737 and the ATR 72, gave the update alongside interim results.
These revealed that lease revenues increased by 14.4% to US$31.5mln in the six months ended December 31.
Operating profits rose by 14.7% to US$17.9mln, but pre-tax profit fell by US$1.4mln to US$5.6mln as Avation made US$4.1mln in interest rate payments on its global medium term note (GMTN).
“The five aircraft delivered and the additional aircraft being delivered in the short term will result in increased revenues and offset the incremental GMTN costs and deliver scale to the business for the long term," said chairman Jeff Chatfield.
Avation’s fleet numbers 34 aircraft, up from 29 a year earlier, providing a lease yield of 13.4%.
The firm was sitting on net cash of almost US$70mln as at the end of December.
"We plan to deploy the remainder of our cash bonds in this half" added Richard Wolanki, chief financial officer.
"Australia is now effectively a duopoly with two rational competitors, it's a fairly benign environment that should be good for airlines.
By order we are the second biggest lessor operating in these markets,"
Share price dipped 5.5% to 132p.