Capital Lease Regulatory News (CLA)

3 March 2010

Capital Lease Aviation PLC

("CLA")

HALF YEAR RESULTS - 31 DECEMBER 2009

The Board of CLA is pleased to announce the unaudited consolidated interim results for the period from 1 July 2009 to 31 December 2009.

HIGHLIGHTS:

·    Net Assets :                                             US $37.56m;

·    Revenue for the period:                       US $7.84m;

·    Profit after tax:                                        US $1.82m;

·    Earnings per share (after tax):           1.86 US cents

Jeff Chatfield, Executive Chairman said:  'Results for the first half of the year are entirely satisfactory given the economic circumstances and current state of the airline industry.  The result is in line with the Board's expectations given the present operating environment. The aircraft that the Company owns and leases have all performed well and the lessees are all performing well. We anticipate that further growth will be available as aircraft valuations may become more attractive to operating lessors such as ourselves, as competitors such as financial institutions and banks leave the sector and release their aircraft into the market. The Board of the CLA group continues to plan to build on the portfolio of aircraft already established.

The Board's strategic plan involves the acquisition of 737 series and Airbus A320 series new generation planes, we will ensure that these aircraft are leased to reliable operators.'

The directors take responsibility for the contents of this announcement.

---ENDS---

Enquiries:

CAPITAL LEASE AVIATION PLC

Jeff Chatfield, Executive Chairman                                                               07783 942 553

STOCKBROKERS

WH Ireland Limited                                                                                          020 7220 1690

NOMINATED ADVISER

James Joyce, David Porter

WH Ireland Limited                                                                                          020 7220 1666

Website http://www.capitalleaseaviation.com/

Directors' Review of Operations and Strategy

The Group results were in line with expectations given the difficulties facing the industry during the period.  Despite this, the business remained profitable and cash flow positive. 

We now report in United States Dollars to reduce the effect of exchange related gains or losses in the income statement and align the reporting currency with our functional currency.  Most group transactions are denominated in US Dollars. 

Revenues were lower by 5% compared to the comparative period due to lower maintenance rent revenues, mainly a result of reduced aircraft usage. After-Tax Profits were down 18% due mainly to foreign exchange losses in the Australian subsidiary whilst the comparative period included foreign exchange gains.  Maintenance Claim expenses were also higher.

The Group repaid $4.82m of debt during the period and the Financial Position has been strengthened with Net Assets at $37.56m, up by $2.98m compared to the comparative period.

Our fleet currently comprises three Fokker F100 jets, two Airbus A321-200's and one Airbus A320. All are currently leased to quality airlines with lease expiries ranging from September 2012 to March 2015. The company's preferred asset targets are the Airbus A320 series and Boeing 737 family of new generation aircraft as we believe these pose the lowest risk given their liquidity, appeal to operators, and ability to remarket.

Given recent signs of recovery in the global economy, particularly in the Asia Pacific region, we remain ready to take advantage of opportunities that may be available when demand in the aviation sector rebounds.

The risks to the business include typical aviation related risks, including but not limited to, any downturn in the global aviation industry, fuel costs, finance costs, war and terrorism and the like which may affect our airline customers' ability to fulfil their lease obligations.

The business also relies on its ability to source finance on favourable terms. Should this supply of finance contract, it will limit our fleet expansion and therefore growth.

Richard Sinclair

Chief Executive Officer

On behalf of the Board of Directors of Capital Lease Aviation PLC

2 March 2010

Approved by the board of Capital Lease Aviation PLC on the 2nd of March 2010.

The above financial information has been extracted from the management accounts and has not been audited. 

These interim statements have been prepared on a basis consistent with International Financial Reporting Standards (IFRS) except that IAS34 "Interim Financial Reporting", which is not mandatory for AIM companies, has not been adopted in the preparation of this statement.