Category: Financial

Air France-KLM considering €500 million private equity loan to pay off state aid

©Air France-KLM

Air France-KLM has announced that it is in negotiations with private equity Firm Apollo Global Management over a potential €500 million capital injection which will be used to partially repay French state aid connected to one of its engineering and maintenance units which owns a pool of engines. The deal will not involve any equity and is being viewed as an alternative to a more traditional sale-and-leaseback deal involving the spare engines. The Dutch finance ministry, a shareholder in the airline group, said it supported the proposal. “Attracting private investors is good for the financial position of the company. We Read more

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SIA Group posts second-half operating profit as travel demand returns

©Singapore Airlines

The Singapore Airlines (SIA) Group carried 3.9 million passengers in FY2021/22, up six-fold from a year before, with international air travel recovering in the last six months as global border restrictions eased. The Group ramped up passenger capacity (measured in available seat-kilometres) in a calibrated manner, growing from 24% of pre-Covid levels in April 2021 to 51% by the end of FY2021/22 in March 2022. As a result, passenger flown revenue grew by SG$2,121 million (+309.6%) year-on-year to SG$2,806 million. This was on the back of a 614.9% growth in traffic (revenue-passenger kilometres), which outpaced the capacity expansion of 215.7% Read more

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AerCap reports financial results for the first-quarter 2022

AerCap Holdings has reported financial results for the first quarter ended March 31, 2022. The company posted a net loss for the first quarter, including net charges related to the Ukraine conflict, of US$2.0 billion. Net income for the first quarter was US$540 million after adjustments for net charges related to the Ukraine conflict and other items. AerCap executed 157 transactions in the first quarter of 2022, including 102 lease agreements, 25 purchases and 30 sales. First quarter cash flow from operating activities was US$1.3 billion, more than three-times higher than the first quarter of 2021. The company continued to Read more

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StandardAero acquires EB Airfoils to continue expansion of component repair capabilities

StandardAero has signed an agreement to acquire EB Airfoils, a leading fan blade, compressor blade and vane MRO provider for the aero-engine and aero-engine derivative markets.  EB Airfoils is a privately held company operating from two facilities located in Palm City, Florida.  With nearly 20,000 square feet of operations and approximately 50 employees, EB Airfoils’ unique capabilities and unequalled expertise, have enabled the company to become one of very few organisations in the world to be granted OEM source approval or source demonstration for the repair and overhaul of fan blades, compressor blades and vanes on leading aero-engine and aero-engine Read more

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SMBC Aviation Capital to acquire Goshawk Aviation for US$6.7bn – will create second-largest global lessor

Japanese-owned, Dublin-based lessor SMBC Aviation Capital has agreed to purchase similarly Dublin-based global aircraft lessor Goshawk Aviation for an enterprise value of US$6.7bn. The deal, once completed will create the largest Japanese-owned aircraft lessor and the world’s second-largest lessor by dint of total assets exceeding US$37 billion, including those aircraft that will be on its order book currently valued at US$13 billion comprising exclusively new-technology, narrow-body Airbus A320neo and Boeing 737MAX aircraft. SMBC Aviation Capital is jointly owned by Sumitomo Mitsui Financial Group and Sumitomo Corporation, while Goshawk Aviation is owned by NWS Holdings Limited and Chow Tai Fook Enterprises Read more

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Ryanair posts full-year loss of €355 million

©Ryanair

Ryanair Holdings has posted a full-year loss of €355 million (pre-exceptionals), compared to a prior-year loss of €1,015 million. FY22 scheduled revenues increased 156% to €2.65 billion.  While traffic recovered strongly from 27.5 million to 97.1 million guests, the delayed relaxation of EU Covid-19 travel-restrictions until July 2021 (Oct. in the case of the UK Govt.), combined with the damaging impact of the Omicron variant and Russia’s invasion of Ukraine in H2, meant that fares required significant price stimulation.  Average fares in FY22 were down 27% to just €27. Ancillary revenue delivered a solid performance, generating more than €22 per passenger Read more

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JetBlue urges Spirit shareholders to ‘vote no’ on Frontier transaction

©JetBlue

JetBlue has filed a “Vote No” proxy statement urging Spirit shareholders to vote against the inferior, high-risk and low-value Spirit/Frontier transaction at Spirit’s upcoming special meeting. In addition, JetBlue commenced an all-cash, fully financed tender offer to acquire all of the outstanding shares of Spirit for US$30 per share, without interest and less any required withholding taxes. Given the Spirit Board of Directors’ complete unwillingness to share the same necessary diligence information that was shared with Frontier, JetBlue is now offering to acquire Spirit for US$30 per share in cash through a fully financed tender offer. This represents a 60% Read more

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Norwegian struggles with fuel prices to limit losses, but protects cash position

©Norwegian Air

Low-cost carrier Norwegian has released its first-quarter results of 2022 in what is a seasonally weakened quarter. Combined with the impact of the Omicron variant of the COVID-19 virus and the effects of the war in Ukraine on the aviation industry the result was an operating loss (EBIT) of NOK849 million, though the company was able to keep its cash level robustly high at NOK7.5 billion. The carrier booked a net loss of NOK1 billion, compared to a net loss of NOK1.2 billion for the same period in 2021. Norwegian carried 2.2 million passengers during the quarter, a significant increase Read more

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Modern Aviation to acquire three Sacramento, CA FBOs

Modern Aviation has executed a definitive agreement to acquire Superior Aviation Company’s (SACjet) three Sacramento, CA FBO operations from Sacramento International Jet Center Incorporated (operating as Capitol Jet Center) at Sacramento International Airport, Mather Jet Center, Inc. (operating as Mather Jet Center) at Mather Airport, and Patterson Aviation Company (operating as Executive Jet Center) at Sacramento Executive Airport. Modern Aviation’s CEO, Mark Carmen, said, “We founded Modern Aviation to develop a national network of FBOs. The opportunity to acquire SACjet’s three Sacramento FBOs and build upon their well-deserved reputation for client service is another important milestone in executing our strategy. Read more

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Willis Lease Finance Corporation reports first-quarter pre-tax loss of US$27.7 million

Willis Lease Finance Corporation has reported first-quarter total revenues of US$68.8 million. For the three months ended March 31, 2022, aggregate lease rent and maintenance reserve revenues were US$53.0 million and spare parts and equipment sales were US$6.6 million. The company reported increased total revenues in the first quarter when compared to the prior-year period, primarily due to an increase in lease rent revenue and short-term maintenance revenue. Quarterly performance was negatively impacted by the effects of the Russian military action in Ukraine and related sanctions. In the first quarter, the company recorded a US$20.4 million impairment on two engines Read more

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