Avation PLC (LSE:AVAP) said it had cut debt, improved liquidity and confirmed it has no direct exposure to Russia or any Russian airline in its half-year update.
The civil aircraft lessor, which has been battling the crisis afflicting the air travel industry caused by Covid, said that revenues also were better than expected in the six months to end December 2021.
“The fleet is returning to higher levels of utilisation, as unutilised aircraft continue to be repositioned or sold. The significant impacts of the airline insolvencies or restructuring of some of Avation's customers have been reflected in previous periods,” said executive chairman Jeff Chatfield.
“We are seeing increased interest from airlines to buy or lease aircraft at sustainable lease rates, more senior lenders willing to lend against aircraft assets, aircraft orders from airlines and improved utilisation of aircraft.
“These factors all support the emergence of the industry from the pandemic,” he added.
Avation posted revenues of US$60.1mln in the half-year, down 5% on a year earlier, while sharply reduced impairment charges meant losses reduced to US$15.9mln from US$60.4mln.
"The significant impairments and provisions for credit losses on receivables experienced in the previous financial year have not recurred,” said Chatfield.
“Some of these provisions may potentially be written back as a result of further collections of debts. Impairments recorded during the period relate to off-lease aircraft including six ex-Virgin Australia ATR72 aircraft, three of which are now subject to a sale agreement with Aegean Airlines.”
Net debt over the period fell by 8% to US$851mln, unrestricted cash rose by 25% to US$31.3mln while the company's net asset value was unchanged at 164p.