Avation PLC (LSE:AVAP) has said it expects its results for the year to June 30, 2022, to show a return to net profit as the company and the aircraft leasing sector continue to recover from the slump in air travel during the COVID-19 pandemic.
Income for the year was US$115mln, the commercial aircraft leasing company said.
"Avation will be pleased to announce a net profit once again. Overall, we believe that air travel is gradually recovering as evidenced by global passenger numbers,” the company's executive chairman Jeff Chatfield said in a statement.
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The company said as part of its future business strategy it plans to gradually trade out of older aircraft types and focus on modern low CO2 emissions aircraft types such as the Airbus NEO and Airbus A220 series and the ATR72 aircraft with new generation engines.
Chatfield noted that Avation is one of the world's largest holders of long-term ATR purchase rights for 28 ATR 72-600 aircraft.
“ATR has demonstrated that these aircraft can operate using 100% sustainable aviation fuel and produce extremely low CO2 emissions on a net basis. Low CO2 emissions will advantage airlines in terms of taxes and government imposts. Our current inventory of unplaced aircraft is low with two ATR 72-600s and one Boeing 737-800 available for sale or lease,” he added.
Avation also said it has been advised that it will receive an initial distribution from the Virgin Australia restructuring of 5.4 cents in the dollar on its adjudicated claim of A$101.4mln on September 15, 2022.
Further distributions based on funds withheld by the trustees and additional funds are being made available to creditors should Virgin Australia meet performance targets in future financial years, it added.
Avation will announce its annual results on September 29, 2022, earlier than had previously been disclosed.