Avation PLC on Thursday said it had completed its latest aircraft sale and said the modern commercial aircraft market is ‘extremely robust’.
In response, shares in Avation were trading 5.6% higher at 155.72 pence on Thursday in London. Earlier, they had jumped to 161.00p.
The Singapore-based aircraft leasing company announced the sale and delivery of ‘a new ATR 72-600 aircraft’, describing the customer as ‘an airline in the Caribbean region’.
Avation previously announced on Wednesday that it had agreed to sell a Boeing 777-300ER widebody aircraft, currently on lease to Philippine Airlines, in a deal the company expects to ‘release around $33 million in net cash proceeds’.
As for Thursday’s ATR 72-600 sale, Avation expects the ‘profitable’ transaction to release net cash proceeds of approximately $5 million.
Avation said it now has ten aircraft on order from ATR, for delivery between the fourth quarter of 2025 and second quarter of 2028. It also has purchase rights to acquire up to 24 additional new ATR 72-600 aircraft.
Executive Chair Jeff Chatfield commented: ‘The company is pleased to have closed another profitable sale transaction, illustrating the continued strength in the market for ATR turboprop aircraft and the value in Avation’s orderbook and purchase rights.
‘Avation is primarily an aircraft lessor but agreed to sell this aircraft due to opportunistic timing and attractive transaction economics. The net proceeds may be used by the company to continue to deleverage.’
Later on Thursday, concerning both aircraft sales, the company said it ‘believes that the market for modern commercial aircraft is extremely robust with demand not matching supply’. It added: ‘IATA estimates that it will take some years before this mismatch will be corrected.’
Furthermore, Avation said in ‘response to an analyst question’ that as of this month, ‘the difference between 3rd party external desktop market appraisals and the company book value of the fleet, excluding the Boeing 777-300ER, is favourable by approximately $82 million’.
However, it noted that this unaudited number was indicative only and subject to market fluctuations.
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