China Aircraft Leasing’s operating profit increased by more than a quarter in the first six months of this year, rising from HK$369 million ($47 million) to HK$469 million.
Profit attributable to shareholders fell, however, from HK$332 million to HK303 million, an 8.7% decline, according to a 24 August filing to the Hong Kong stock exchange.
Revenue also fell 3.1% to HK$1.59 billion, from HK$1.64 billion in the first six months of 2020. Meanwhile, total operating expenses fell 11.9% from HK$1.27 billion to HK$1.12 billion.
The lessor’s owned fleet increased by one aircraft compared with 30 June 2020, ending with a total fleet of 104 owned aircraft, comprising 71 Airbus A320ceo-family and seven A320neo-family jets, 11 A330ceos, 14 Boeing 737NGs, and one 787.
In addition, it had 25 managed aircraft. During the first six months of this year, CALC delivered six aircraft, sold four and disassembled one.
As at 30 June 2021, CALC’s owned fleet had an average age of 6.5 years and an average remaining lease tenor of seven years.
“With no lease agreements expiring in the next 12 months, CALC has been alleviated the pressure for remarketing of aircraft assets in the current volatile market in the near term,” it says.
“All aircraft to be delivered in the next 18 months have been mandated for lease.”
The lessor is cautiously optimistic about the recovery of the commercial aviation market amid the pandemic.
“Looking ahead, the ongoing administration of vaccines on the world population and advancements in testing will lead to the growing list of countries contemplating border reopening. Coupled with the burgeoning eagerness to travel, recovery of the global aviation market is gathering pace,” it says.
“However, the recent rapid spread of [the] highly contagious delta variant has led to the resurgence in many regions. The long-term growth of the industry is nothing but certain, though the recovery will be gradual and uneven, with timing uncertain.”
It adds that in the second half of the year, it will designate purchase-and-leaseback transactions as one of its “key business deployment” areas.
The lessor goes on to say: “Riding on the market trends, CALC will expand high-quality clientele in regions where growth is accelerating. The group will also allocate more resources in mainstream markets, mostly in the Chinese market, and build long-term partnerships.”