REG - Avation PLC - TRADING UPDATE

AvationAnnouncement

10/05/2023 07:00

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RNS Number : 7896Y  Avation PLC  10 May 2023

 Via RNS and SGXNET

AVATION PLC

("Avation" or "the Company")

 

TRADING UPDATE AND FULL UTILISATION

Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, is
pleased to announce that it has entered into a new lease agreement for its
final remaining aircraft from inventory. The ATR72-600 aircraft has been
leased to an airline in the Pacific at a market rate for six years and is
scheduled for delivery in July 2023.

Trading Update

In placing on-lease the last remaining inventory aircraft, all of Avation's
aircraft, which were repossessed during the COVID-19 pandemic and became
"off-lease" aircraft are now placed or have been sold. Since inception in 2006
Avation has purchased a total of 73 aircraft, has sold a total of 37 and
traded two aircraft purchase options. Avation has also successfully
transitioned a total of 13 aircraft between airlines.

Avation expects the global passenger market capacity to recover to 2019 levels
by the end of calendar 2023 as stated by Cirium an aviation industry
consultancy.

Cost of Borrowing

Avation's weighted average cost of borrowing as at 31 March 2023 is 6.08%
(unaudited) and 99% (unaudited) is hedged. Avation's net asset value per
ordinary share as at 31 December 2022 is USD $3.42 (unaudited).

ATR and SAF

The Company is encouraged by ATR's target to certify ATR aircraft to be
capable of using 100% sustainable aviation fuel ("SAF") by 2025. This enables
ATR aircraft to remain compliant with any EU regulations which may require
aircraft fuel to include a certain proportion of SAF, such as the regulations
currently being considered by the EU Commission. Avation PLC is one of the
leading aircraft lessors for ATR aircraft and we look forward to delivering
our two orders and 28 purchase rights for ATR aircraft over the coming years
which should help to reduce aviation CO(2) emissions.

Finance Costs

Avation's Executive Chairman, Jeff Chatfield said: "Avation now has no
remaining aircraft unleased in inventory as the Company has entered into a
lease agreement with a new airline customer, with the aircraft scheduled to be
delivered in July 2023 on completion of technical checks. We expect Avation's
cost base to improve in the next financial year as the holding cost of
inventory is now eliminated and reconfiguration and transition costs have all
been reduced."

-ENDS-

Enquiries:

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

Avation welcomes shareholder questions and comments and advises the email
address for questions is: investor@avation.net (mailto:investor@avation.net)
and the Company provides an investor Q & A during the conference call
associated with release of results. The head office telephone number is +65
62522077.

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 (http://www.avation.net) .

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