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Avation confident on outlook even through coronavirus pandemic

Snapshot

  • Leases commercial passenger aircraft to global airlines
  • Portfolio of 49 aircraft with 18 airline customers
  • Air travel is returning to normal after COVID-19 disruption
airbus a220-300

Quick facts: Avation PLC

Price: 95.5 GBX

LSE:AVAP
Market: LSE
Market Cap: £59.85 m
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What Avation does

Avation PLC (LON:AVAP) specialises in leasing commercial passenger aircraft to various airlines across the world.

Listed on the main board of the London Stock Exchange, the company’s customers include Flybe, Virgin Australia, Air France, easyJet, Eva Air, Philippine Airlines, Air India, Vietjet Air, Fiji Airways, Mandarin Airlines, Cebu Pacific, Garuda Indonesia, Galistair, airBaltic and Danish Air Transport.

The company’s current fleet is comprised of 49 aircraft including Boeing and Airbus models.

How it's doing

In June, Avation, said it had a strong cash balance and that some of its main airline customers were returning to service as coronavirus travel restrictions are loosened.

Results for the nine months to March 31, which Avation said were being released as a one-off to provide updated information about the business’s financial position amid the uncertain times in financial markets, showed pre-tax profit up 173% to US$46.6mln on revenue up 14% to US$99.6mln.

Net asset value per share increased by 10% to 324p and at the end of March, the aircraft leasing group had a cash balance of US$131.6mln 

What the boss says: Jeff Chatfield, Executive Chairman

"Immediately at the outset of the COVID-19 pandemic, Avation instituted a programme of support for some of its airline customers to defer for later payment certain portions of their rent in the short term. 

"The cashflow impact of this support programme has been mitigated by adjusting the amortisation profiles of the relevant financings with the agreement of lenders.”

Inflexion points

  • Air travel returns to normality
  • Avation still signing deals with customers
  • Balance sheet is strong

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Avation PLC: Proactive Investor Presentation

Avation PLC's (LON:AVAP) Richard Wolanski pitches the company to investors at the Proactive One2One Virtual Event. Avation's a specialist commercial passenger aircraft leasing company managing a fleet of aircraft which it leases to airlines across the world including Flybe, Air France and...

on 9/6/20

2 min read