Leasing firm Avation (LON:AVAP) now has a fleet of 35 owned aircraft, it said, as it delivered a new Airbus A321-200 to holiday giant Thomas Cook.
Avation chairman Jeff Chatfield said: "Avation is pleased to deliver this new Airbus A321 to Thomas Cook Airlines Limited on a 12 year lease.
"This brings Avation's current fleet of owned aircraft to 35. The company has been a lessor to Thomas Cook for nine years and we are grateful for their continued confidence and custom."
To support the purchase of the Airbus, the firm secured an asset backed senior debt facility with a new banker and prior to delivery, it made finance payments.
The plane is an Airbus A321-200 equipped with CFM International CFM56-5B3/3 engines, seating 220 passengers.
House broker WH IRELAND repeated a 'buy' and 260p a share price target after the news. It left its forecasts unchanged. For full year 2016, it estimates revenue of $71mln, representing growth of 24.8% and resulting in pre-tax profit of $13.4mln - a transitionary year for Avation. The shares remain undervalued on a range of valuation metrics, added the broker.