REG - Avation PLC - TRADING UPDATE

Airbus SEAnnouncement

19/01/2022 08:05

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RNS Number : 9311Y  Avation PLC  19 January 2022

Via RNS and SGXNET

AVATION PLC

("Avation" or "the Company")

 

SALE OF AIRCRAFT, TRADING UPDATE, AND RESPONSE TO ANALYST QUESTION

Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company,
advises that it has completed the sale of the first of a series of three
ex-Virgin Australia Airlines ATR72-600s to Aegean Airlines.

Trading update

The company finished the period ended 31 December 2021 with 42 aircraft in the
fleet of which 50% where modern narrowbody commercial aircraft. The average
age was 5.3 years with remaining lease duration of 6.0 years. The fleet has
unearned contracted revenue from operating leases of $575 million (unaudited)
and an additional $64 million (unaudited) of minimum lease payments receivable
under finance leases.

The collection rate of cash compared with contracted revenues as at the month
of December 2021 was 171% (unaudited) with year-to-date 31 December 2021 cash
collection rate of 91%.  The cash and bank balances as at 31 December 2021
were $121 million (unaudited).

Response to Analyst Question

In respect of Philippine Airlines 777-300 aircraft power by the hour rent
collections for the period September 2021 to November 2021 the average monthly
rental was around 95% of the notional level of the applicable contracted fixed
rent.

The sale of three ATR aircraft to Aegean Airlines, in addition to the sale of
an Airbus A321 and an Airbus A220 previously announced since 1 July 2021, will
increase liquidity and release approximately $42 million in aggregate net
proceeds.

Results Announcement

The company is expected to release its unaudited results for the first half of
the financial year ended 31 December 2021 on 3 March 2022.

Avation's Executive Chairman, Jeff Chatfield said: "We see the air travel
industry experiencing a gradual recovery from COVID-19 with most of our
airline clients having navigated to stabilization of activity levels. We
expect that the results for the first half will demonstrate certain
improvements, albeit remain a loss. The Company sees improvements in
liquidity, revenue collections and a gradual stabilisation of the business.
The Company expects material receipts in the coming months from the sale of
aircraft, the creditor pay out from the Virgin Australia administration and
the PAL restructuring as well as continued collection of debtors and cashflow
from operations."

 

-ENDS-

Enquiries:

Avation PLC - Jeff Chatfield, Executive
Chairman
+65 6252 2077

Avation welcomes shareholder questions and comments and advises the email
address is: investor@avation.net

Notes to Editors: Avation PLC is an aircraft leasing company, headquartered in
Singapore, owning and managing a fleet of commercial passenger aircraft which
it leases to airlines around the world. More information on Avation is
available at www.avation.net.

 

 

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