REG - Avation PLC - AGM Statement

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RNS Number : 0664J  Avation PLC  26 November 2025

Via RNS and SGXNET

AVATION PLC

("Avation" or "the Company")

 

CHAIRMAN'S AGM STATEMENT

 

Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company,
will hold its Annual General Meeting today in Singapore which will include the
following Chairman's Statement. The purpose of this statement is to provide
investors with an update on the Companies current operations and positive
outlook.

 

Market Overview

In its most recent air passenger market analysis report IATA noted global
passenger traffic, measured in Revenue Passenger Kilometres (RPK), increased
by 3.6% year-on-year with passenger load factors at 83.4%. International
traffic rose by 5.1% year-on-year with Asia Pacific carriers - where Avation
generates much of its revenue - reporting an impressive 7.4% increase.

 

Market values for new commercial aircraft remain stable with positive
inflationary increases while lease rates have seen meaningful uplifts. Market
values for previous generation commercial aircraft remain stable, supported by
continuing constrained supply of new aircraft and operators seeking to extend
the economic lives of older aircraft in response to high maintenance costs for
new aircraft.

 

Fleet Update

Avation currently owns a fleet of 32 commercial aircraft leased to 15 airlines
in 14 countries.  The average age of the fleet is 8.9 years, and the average
remaining lease term is 4.1 years, providing stability and ongoing revenue
visibility. Four ATR aircraft leases are scheduled to expire by 30 June
2026.  The first aircraft commenced a new six-year lease to our existing
customer PNG Air on 21 November 2025. Two more of these aircraft have been
placed with new operators and are currently undergoing scheduled maintenance
prior to transitioning to their new lessees.

 

In September 2025 Avation sold a Boeing 777-300ER widebody aircraft, realising
a gain of US$ 4.1 million and releasing around US$ 33 million in cash after
repayment of associated bank loans.

 

In October 2025 Avation agreed a four-year lease extension for its Airbus
A330-300 aircraft with EVA Air of Taiwan.

 

Avation has 10 new ATR72-600 aircraft on order, the first of which is now
scheduled for delivery in December.  This aircraft will enter a 12-year lease
to an airline in South Korea.  A second ATR 72-600 is scheduled for delivery
in April 2026, is already committed to a 12-year lease with an airline in
Cambodia.

 

Finance Update

On 6 November 2025 Avation's subsidiary Avation Group (S) Pte. Ltd.
successfully issued US$ 300 million principal amount of 8.5% unsecured notes
due May 2031. The proceeds of this debt issue were deployed to fully redeem
the group's outstanding US$ 298 million of 8.25% senior unsecured notes due
2026. The refinancing of the outstanding notes which were due to mature in
October 2026 provides the group with a stable long-term capital structure and
a platform for future growth.

Avation also has US$ 305.7 million secured bank loans outstanding at 31
October 2025 which bear interest at an average interest rate of 5.11%.
Secured loans have been paid down by US$ 53.2 million since 30 June 2025.

Total cash and bank balances are US$ 120.2 million at the current date.

The Company has continued to repurchase shares, reducing the outstanding
shares net of treasury shares by 6.4% from 66,588,757 at 30 June 2025 to
62,297,739 today.

Considering the Company's improved financial position the Directors were
pleased to increase the dividend to 1.0 US cent per share in respect of the
year ended 30 June 2025.

 

Executive Chairman, Jeff Chatfield, said:

"Demand for passenger air travel remains strong and industry dynamics continue
to favour leading aircraft lessors such as Avation. This encouraging backdrop
supports our ability to place the remaining aircraft from our orderbook on
lease at attractive terms and successfully transition aircraft between
airlines as and when leases conclude. Our recent refinancing of unsecured debt
eliminates a near-term maturity of nearly US$300 million and extends financial
flexibility out to 2031, providing a solid platform for stable, long-term
growth. The Company is optimistic as we look to the future and remains
committed to prudent, growth-oriented fleet management leveraging our
orderbook, purchase rights, and opportunities in the secondary market."

 

-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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