Avation shares fly as expects higher profit than market expectations

(Alliance News) - Avation PLC on Friday said it expects profit to top current market ...

Alliance News 24 May, 2024 | 9:30AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Avation PLC on Friday said it expects profit to top current market expectations.

The Singapore-based aircraft leasing company said that the market backdrop has been supportive for aircraft valuations for the financial year ending June 30.

It predicts profit for the year which is "significantly ahead of current market expectations".

Avation shares rose 11% to 146.28 pence each on Friday morning in London.

Avation noted International Air Transport Association figures reporting that passenger air travel climbed 14% in the 12 months to March 31, with international travel growing by 19% in revenue passenger kilometres.

The company said it placed orders for 12 units of ATR 72-600 aircraft, a key component of its 10-year low carbon technology strategy.

Further, it added that rent arrears and other customer receivables have been reduced by around USD18.7 million since the start of the current financial year.

Avation Executive Chair Jeff Chatfield said: "The company is at a transition point in terms of improving shareholder returns alongside cash flow generation and growth. We are confident of improving returns to shareholders by carefully optimising the mix of sources of finance available to the company and are finding asset backed financiers to be extremely constructive."

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Avation PLC 135.00 GBX -5.59 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures