Operating lessor AWAS improved its third-quarter net profit to $61.8 million for the three months ended 31 August, compared with $54.9 million in the year-earlier period.
Results from operating activities were flat at $132.3 million for the three months, compared with $132.4 million for the three months ended 31 August 2012, says AWAS in an earnings release to investors today.
Total revenues increased 7.5% to $258 million for the period, driven primarily by an increase in lease revenue, says the lessor.
Lease revenue increased to $255.4 million from $235 million, "due to additional revenue from purchased aircraft, a decrease in lease incentive amortisation costs, offset primarily by a fall in maintenance reserve release and a higher charges for bad and doubtful debts."
Expenses for the period increased 16.8% to $125.7 million, as depreciation costs climbed higher, says AWAS.
The lessor says depreciation costs increased to $96.6 million from $84.4 million for the three months on higher charges related to additional aircraft acquisitions.
During the period, AWAS sold five aircraft, compared with the sale of six units, of which two aircraft were previously categorised as “held-for-sale”, during the three months ended 31 August, 2012.
Aircraft maintenance expenses decreased to $4.9 million from $6.4 million for the three months ended 31 August 2012. This was due to lower costs associated with early terminations and the re-lease of aircraft, says AWAS.
AWAS ended the quarter with total cash and cash resources of $472.8 million, a decrease of $204.4 million compared with $677.2 million at 30 November 2012.
The lessor had 265 aircraft at quarter end, including one aircraft on finance lease, compared with 241 units at 30 November 2012.
AWAS has 56 aircraft on forward order due to deliver through 2017; of which, eight aircraft are due to deliver over the remainder of this financial year, according to the lessor. It also has a commitment to purchase one aircraft from an airline.