Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, announces unaudited results for the six months ended 31 December 2022.

Financial Highlights

Revenue and other income reduced to US$55.3 million (2021: US$60.1 million); Operating profit increased to US$ 35.0 million (2021: US$18.8 million); Profit before tax of US$6.7 million (2021: Loss before tax US$15.9 million); Net indebtedness reduced by US$46.0 million to US$746.9 million (30 June 2022: US$792.9 million) and Net asset value per share increased 5.2% to GBP2.82 (30 June 2022: GBP2.68); Operational Highlights

Two ATR 72-600 turboprop aircraft were sold during the period; One ATR 72-600 aircraft was repossessed from an airline in Myanmar; One off-lease ATR 72-500 started a lease with a new airline customer in Nepal; Avation received a creditors' distribution of US$3.4 million from Virgin Australia; Two Airbus A220-300 aircraft were re-financed with fixed rate long-term loans, reducing Avation's exposure to interest rate changes;

Outlook

Avation is focussed on the execution of lease deliveries and sale agreements for the remaining off-lease aircraft in the fleet in the second half-year period and managing the overall cost of debt. The airline industry is continuing its recovery from the lows seen during the COVID-19 pandemic. Global domestic air travel in December 2022 as reported by IATA, has recovered to around 79.9% of December 2019 passenger numbers while international travel, while lagging, has recovered to around 75.1% of December 2019 levels.

The Company believes that airlines will require significant numbers of leased aircraft in the short to medium term due to the large number of older aircraft that have been retired as a result of the COVID-19 pandemic, and the impact of the pandemic on airline balance sheets, reducing their ability to purchase aircraft directly. The Company's future strategy will focus on leasing modern, low CO2 emissions, fuel-efficient aircraft. Avation is supportive of the aviation industry's goal of becoming more sustainable through a transition to new technology more fuel-efficient aircraft engines and the use of sustainable aviation fuel to reduce CO2 emissions.

The Company will cautiously position itself for a return to organic self-funded growth through deliveries from its orderbook, opportunistic aircraft trading and may convert ATR purchase rights to firm orders should attractive lease opportunities arise.'

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