BOC Aviation's 2017 operating profit rose 16.3% to $551 million, on the back of a record 74 aircraft deliveries.
Total revenue was up 17% to $1.4 billion, with lease revenue rising 22% to $1.3 billion, says the lessor. Net profit rose 40.3% to $587 million.
During 2017, BOC Aviation leased aircraft to 80 airlines in 33 countries and regions. Of the 74 aircraft delivered, 28 were delivered in the third quarter alone. Overall, it signed 103 leases in 2017, and sold 30 owned and two managed aircraft.
The lessor's order book stood at 173 aircraft at the end of the year. It has secured lease commitments on 50 of the 53 aircraft scheduled for delivery in 2018.
"Our industry continues to exhibit good health, with stable borrowing costs, robust demand for new aircraft and strong underlying airline customer profits all contributing to the aircraft operating leasing sector’s growth," says chief executive Robert Martin.
"Passenger traffic rose 7.6% in 2017, marking another year of expansion at above trend rates, with growth especially evident in Asia’s emerging markets. Global airline load factors continue to set new records, hitting 81.4% for 2017, and suggest that the pace of growth of the global airline fleet in our target segment, being passenger jets with more than 100 seats, is being managed in line with demand."
At the end of 2017, BOC Aviation's owned and managed aircraft stood at 318, with an average age of three years, and an average remaining lease of term of 8.2 years. The lessor's net lease yield remained stable at 8.4%.
Source: Cirium Dashboard