A fall in the value of aircraft and debt repayment charges left profits at aviation financier Fly Leasing sliding by 90 per cent at €6 million last year, the company’s figures show.
The Dublin- and US-based aviation financier, led by former Aer Lingus chairman Colm Barrington, restructured the business in 2015, paying off debt and selling older aircraft.
It reported net income for the year of $6.6 million (€6 million), almost 90 per cent less than the $56 million it earned in 2014.
However, Fly said that a number of once-off charges, including an $84.3 million cut in the value of aircraft and a $17.5 million charge for the early repayment of debt hit its results in 2015.
The previous year’s figures also included $40 million in end-of-lease income and a $19 million gain on aircraft sales.
Commenting on the results, Mr Barrington, the firm’s chief executive, said that it was entering 2016 with a “leaner, younger and more profitable fleet” and was poised for growth.
Other initiatives
He added that its aircraft sales and other initiatives have cut costs and debt, lowered risk and generated substantial cash.
Fly re-priced a $500 million term loan during the year, cutting its interest bill by $4 million. It also bought back $100 million worth of shares.
Mr Barrington noted that 2015 had been a good year for airlines with record profits and an increase in revenues.
“Traffic and financial forecasts for 2016 are even more buoyant, with airlines’ business being strongly supported by lower fuel prices,” he said.
He pointed out that this had resulted in strong demand for leased aircraft, with all but one of Fly’s deliveries for 2016 committed to airlines.
The lessor’s revenues grew 17 per cent in 2015 to $470.5 million from $427 million in the previous 12 months.
At the end of the year it had $3.4 billion in assets, including $2.9 billion in aircraft and $450 million in cash.
