(Alliance News) - Avation PLC on Friday said it expects profit to top current market expectations.
The Singapore-based aircraft leasing company said that the market backdrop has been supportive for aircraft valuations for the financial year ending June 30.
It predicts profit for the year which is "significantly ahead of current market expectations".
Avation shares rose 11% to 146.28 pence each on Friday morning in London.
Avation noted International Air Transport Association figures reporting that passenger air travel climbed 14% in the 12 months to March 31, with international travel growing by 19% in revenue passenger kilometres.
The company said it placed orders for 12 units of ATR 72-600 aircraft, a key component of its 10-year low carbon technology strategy.
Further, it added that rent arrears and other customer receivables have been reduced by around USD18.7 million since the start of the current financial year.
Avation Executive Chair Jeff Chatfield said: "The company is at a transition point in terms of improving shareholder returns alongside cash flow generation and growth. We are confident of improving returns to shareholders by carefully optimising the mix of sources of finance available to the company and are finding asset backed financiers to be extremely constructive."
By Tom Budszus, Alliance News slot editor
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Avation (AVAP)