The Hong Kong-listed aircraft lessor BOC Aviation reported a 22 per cent jump to record full-year net profit on Monday, supported by growth in global air travel, and signalled an upbeat industry outlook.
As airlines increasingly opt to lease planes, Asian lessors are investing billions of dollars to expand, having won backing from cash-rich banks and financial investors. Last year, BOC Aviation raised US$1.1 billion in the biggest IPO by an aircraft lessor.
Last week, the company said it had ordered 13 new Boeing 737 MAX 8 aircraft.
“Airlines are attracted by the 737 MAX 8’s lower operating costs and fuel efficiency, and we are delighted to announce the inclusion of these additional aircraft as we build our future delivery pipeline,” said Robert Martin, BOC Aviation’s chief executive.
BOC Aviation’s net profit rose to $418 million in the year ended December 31 on a 9 per cent increase in total revenue and other income to $1.19bn.
“The economies that are commodity-based are beginning to pick up. Growth in domestic markets - Brazil, Russia, India and China – particularly towards the end of the year was good,” said Mr Martin.
The Singapore-headquartered firm, which has a portfolio of 284 aircraft, expects to take record deliveries of over 75 aircraft this year.
BOC Aviation said the market for aircraft funding remains strong, with the company having over $4bn in committed facilities.
Global demand for air travel in January rose 9.6 per cent, the sharpest increase in more than five years, boosted by surging demand in domestic passenger markets in India and China.
* Reuters
business@thenational.ae
Follow The National's Business section on Twitter
