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Avation expects revenue pick-up as fleet value tops US$1bn

Four new airlines have become customers, while the fleet now comprises 37 aircraft
Airbuses are a staple of Avation's fleet

Civil airline lessor Avation PLC’s (LON:AVAP) fleet is now worth over US$1bn following a spate of purchases in December.

Avation started to re-jig its portfolio last June when it sold six ATR turbo-prop planes, which it replaced with its first twin-aisled jet (a Boeing 777-300ER) and three others in December.

READ: Avation confirms delivery of Airbus A320-200 to easyJet

Jeff Chatfield, executive chairman, added that he expects a material increase in lease revenue over the remainder of the year as a result of the re-shaped fleet.

Four new airlines have become customers, while the fleet now comprises 37 aircraft.

The bulk of the jets are Airbuses (12) alongside 19 ATR turbo-props.

WATCH: Avation PLC's 'never looked stronger' - CFO Richard Wolanski

Avation posted lower lease income of US$41.7mln (US$45.1mln) due to the reduction of the fleet at the start of this latest half-year though total revenues rose by 16% to US$52.4mln.

Interim profits to December dropped 13% to US$7.72mln, though cash inflow more than doubled to US$64.3mln.

Chatfield said the lower lease revenue reflected Avation starting the period with a smaller fleet following the ATR sale.

“The sale of these aircraft de-risked the portfolio by lowering airline concentration and released equity which facilitated the acquisition of four new aircraft in December 2017.”

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September 20 2018
Avation said its 2018 performance showed growth consistent with an increase in fleet assets and record high monthly lease rental collections

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