Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, announces unaudited results for the six months ended 31 December 2023.

Financial Highlights

Revenue and other income US$46.3 million (2022 restated: US$55.7 million); Operating profit US$17.5 million (2022 restated: US$35.4 million); Net indebtedness reduced by US$31.8 million to US$699.4 million (30 June 2023: US$731.2 million); Group total cash increased to US$150.1 million (30 June 2023: US$116.9 million); Loss before tax US$9.6 million (2022 restated: Profit before tax US$7.1 million); Loss before tax includes US$2.9 million loss on sale resulting from aircraft repossession in India and US$4.7 million non-cash amortisation expense resulting from the 2021 modification of terms of Avation Capital S.A. Senior PIK Toggle Notes due 2026 under IFRS 9 and Net asset value per share decreased 5.5% to GBP2.56 (30 June 2023 restated: GBP2.71).

Operational Highlights

One Airbus A320-200 started a new four-year lease with Cebu Pacific; A lease for an ATR 72-500 was terminated and the aircraft was repossessed from an airline in India and sold; Avation refinanced four leased aircraft with a new loan facility and Avation repurchased US$8.0 million face value Avation Capital S.A. Senior PIK Toggle Notes due 2026.

Outlook

According to IATA, 2023 was marked by strong industry-wide recovery with revenue passenger kilometres increasing 25% year-on-year in December 2023 to 94% of 2019 levels. Avation's fleet will be 100% utilised once the delayed sale of an 11-year-old ATR 72-600 and a delayed lease of the remaining off-lease ATR 72-600 aircraft are concluded. Both transactions are expected to close shortly. There are no leases expiring before September 2024 at the earliest, with the next earliest lease expiry not until January 2026.

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 latest technology more fuel-efficient aircraft engines and the use of sustainable aviation fuel to reduce CO2 emissions. A portion of Avation's fleet comprises latest technology ATR72-600 aircraft which have impeccable and world leading environmental characteristics.

The Company is focussed on optimising its capital structure, refinancing and continuing to lower debt levels and is positioned to cautiously return to organic growth through deliveries from its environmentally friendly ATR72-600 orderbook, opportunistic aircraft trading and the potential exercise of ATR purchase rights should attractive lease opportunities arise. Avation intends to repurchase Avation Capital S.A. Senior PIK Toggle Notes on the open market as and when attractive valuation opportunities arise and liquidity is available

Contact:

Jeff Chatfield

Tel: +65 6252 2077

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