Avation PLC (LSE:AVAP) shares gained altitude on Monday after the company said it has signed new five-year leases for three ATR 72-500 aircraft with Australian airline Hevilift.
The company said two of the new leases are follow-ons for aircraft already operating with Hevilift, while the third is a new lease. The firm added that the first of the three new contracts commenced on August 10.
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Avation said the three aircraft are all former Virgin Australia (ASX:VAH) planes that is has been remarketing since the airline went into administration and the aircraft were returned.
"We are pleased to sign these long-term leases with Hevilift, an existing and valued customer. We are starting to observe a recovery in the air travel industry, notably in the regional sector where the ATR 72 is the optimal aircraft," Avation executive chairman Jeff Chatfield said in a statement.
Shares in Avation rose 0.6% to 87.5p in mid-afternoon trading.