Avation narrows interim loss as passenger air travel demand grows

(Alliance News) - Avation PLC on Thursday reported a narrowed interim loss amid increased revenue, as management said the company is well positioned to "navigate prevailing market conditions".

The Singapore-based commercial aircraft leasing company reported a pretax loss of USD5.7 million for the six months ended December 31, narrowed from USD9.8 million a year earlier.

Revenue grew 4.8% to USD55.5 million from USD53.0 million, with the bottom line further supported by a reduction in the unrealised loss on aircraft purchase rights and pre-delivery aircraft deposits paid to USD4.2 million, from USD15.4 million.

However, hampering the bottom line were increased finance expenses, rising 31% to USD33.2 million from USD25.3 million.

Avation noted that global passenger traffic grew 5.3% on-year in 2025, according to IATA, with both domestic and international passenger traffic growth moderating.

"Domestic traffic increased by 2.4% year-on-year, while international traffic expanded by 7.1%. Passenger load factors increased to 83.6%, the highest on record for any year. Continued growth in the overall air travel market is supportive for commercial aircraft leasing," the company said.

Shares in Avation were down 2.4% at 141.00 pence on Thursday afternoon in London.

"We are pleased to present these results for the six-month period ended 31 December 2025 which show continued stable cash flow generation from a fully utilised fleet with ten unencumbered aircraft," said Executive Chair Jeff Chatfield.

"Demand for passenger air travel continues to grow steadily and long OEM order backlogs, supply chain issues and delays to new aircraft deliveries are all supportive for aircraft lessors such as Avation....Avation enters the second half of the financial year with a contracted lease portfolio providing visibility of cash flows, extended debt maturities following the successful refinancing of our unsecured debt obligations and continued demand for leased aircraft amid constrained new aircraft supply.

"The board believes that the company is well positioned to navigate prevailing market conditions while continuing to generate long-term shareholder value."

By Christopher Ward, Alliance News reporter

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