At the end of March, the aircraft leasing group had a cash balance of US$131.6mln, said executive chairman Jeff Chatfield in the group's third quarter report.
Chatfield added: "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.”
The executive chairman said the company has also looked to maximise cashflow by cutting admin costs and pausing capital expenditure.
“The company is fortunate that some of its largest customers are in countries where there has been comparatively lower impact from the pandemic,” he added.
Certain customers returning to service includes VietJet of Vietnam, Latvia-based airBaltic and Taiwan’s EVA Air and Mandarin Airlines, which together represent more than 60% of Avation's future unearned contracted leasing revenue.
Results for the nine months to March 31, which Chatfied said were being released as 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.