Fly Leasing reports fourth quarter net loss of US$107.0 million

Fly Leasing (FLY) is reporting a net loss of US$107.0 million for the fourth quarter of 2020. This compares to net income of US$75.2 million for the same period in 2019. The decrease in net income is primarily due to flight equipment impairment of US$115.0 million. Net loss for the year ended December 31, 2020 was US$67.4 million compared to net income of US$225.9 million for the year ended December 31, 2019.

Adjusted net loss was US$115.2 million for the fourth quarter of 2020, compared to adjusted net income of US$77.0 million for the same period in the previous year. For the year ended December 31, 2020, adjusted net loss was US$69.4 million compared to adjusted net income of US$245.9 million for the same period last year.

On December 31, 2020, FLY’s total assets were US$3.2 billion, including investment in flight equipment totaling US$2.8 billion. Total cash on December 31, 2020 was US$161.5 million, of which US$132.1 million was unrestricted. The book value per share on December 31, 2020 was US$25.88. Compared to the prior year, FLY’s net debt to equity ratio on December 31, 2020 remained at 2.3x.

FLY recognized a flight equipment impairment of US$115.0 million in the fourth quarter of 2020, of which US$106.0 million is related to two Airbus A330-300 aircraft expected to be returned by the lessee in 2021. These wide-body aircraft are the only aircraft of their type in FLY’s portfolio. The balance of the impairment charge is related to seven narrow-body aircraft that FLY expects to sell in 2021.

On December 31, 2020, FLY had 84 aircraft and seven engines in its portfolio. FLY’s aircraft and engines are on lease to 37 airlines in 23 countries.

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