AIR.L Regulatory News (AIR)

LEI: 213800JLR6YIRMSCUS98

8 July 2021

AIR PARTNER PLC 

("Air Partner", "Company" or "Group")

AGM STATEMENT AND POSITIVE TRADING UPDATE

Air Partner, the global aviation services group, is pleased to report that it has enjoyed strong trading over the first five months of its financial year and now expects to surpass management expectations for the year ending 31 January 2022.

The Company, which holds its Annual General Meeting at 12.30pm today, is now trading well ahead of pre-COVID levels. This performance has been driven in part by the ongoing high levels of activity in US Private Jets, where the large domestic market has enabled HNWIs to continue flying. Trading is also strong in Group Charter, driven by government, sports and cruise sector work. Momentum is starting to build in UK Private Jets, with business now back at pre-COVID levels, and this is expected to continue as the vaccine roll-out drives the return of business and leisure travel. Meanwhile, Freight was busy at the start of the financial year, delivering COVID-19 test kits and vaccine raw materials, but this activity has now reduced. As a region, Europe remains challenging, and the Group does not currently expect to see a material recovery until 2022.

The Private Jets performance continues to benefit from Air Partner's first-rate JetCard programme, which allows clients to buy private jet flying 'hours' in advance, while offering fixed rates and the ability to change booking details at short notice, without penalty. It is proving extremely popular as it gives travellers the ability to fly in safety the moment travel restrictions are lifted. New JetCard sales in the current financial year, as at the end of June 2021, are up 36.8% versus the prior period and JetCard deposits now stand at £18.9m, up 6.2% on the year-end balance.

The Safety & Security division continues to see improvement as airports scale up operations in anticipation of increased passenger numbers. Following the successful conversion of many of its safety training courses from classrooms to virtual delivery, Baines Simmons is seeing a strong recovery with the military sector, with customers including the UK Military Aviation Authority, Leonardo and the Royal New Zealand Defence Force. Work with commercial aviation organisations remains subdued as a result of government restrictions; however, the Group sees strong potential going forward, particularly in design organisation, such as its work supporting Heart Aerospace on the design of an all-electric regional aircraft, and helping organisations to manage their risk as they prepare to scale up activity.

Government restrictions have also led to a slower recovery at Redline on account of low airport movements. Despite this, in the financial year to date, the company has renewed nine contracts, totalling nearly £1 million, and secured five new business wins with Gatwick Airport, Doncaster Sheffield Airport, Teesside International Airport, DHL and the Welsh Parliament, worth a combined £191,000.

Outlook

Although the timing of easing of restrictions on travel remains uncertain across Air Partner's various geographies, the Board is pleased with the Group's performance so far in the current financial year and is optimistic about the prospects for both the Charter and Safety & Security divisions. In particular, it expects to see the ongoing recovery of the aviation industry drive strong demand for Air Partner's Safety & Security services, as previously mothballed operations are brought back into action.

As at the end of June, the Group is debt free and has cash in the bank of £11.1m, excluding JetCard cash.

ENDS

About Air Partner:

Founded in 1961, Air Partner is a global aviation services group providing aircraft charter and aviation safety & security solutions to industry, commerce, governments and private individuals, across civil and military organisations. The Group has two divisions: Air Partner Charter, comprising Group Charter, Private Jets, Freight and Specialist Services; and Air Partner Safety & Security (formerly Consulting & Training), which comprises Baines Simmons, Redline Assured Security and Managed Services. 

Group Charter charters large airliners to move groups of any size. Private Jets offers the Company's unique pre-paid JetCard scheme and on-demand charter for up to 19 people. Freight charters aircraft of every size to fly almost any cargo anywhere, at any time. Specialist Services comprises Air Partner's other aviation services that complement its Charter business: Remarketing, ACMI, scheduled group travel, tour operations, air evacuation and flight operations.

Baines Simmons offers aviation safety management and fatigue risk management. Redline Assured Security delivers government-standard security training, consultancy and solutions to regulated, high value and high threat environments. Managed Services offers wildlife hazard management, aircraft registry services, consultancy services for airports and logistics operations, remote condition monitoring and baggage system testing.

Air Partner has 16 locations across three continents, with its headquarters located alongside Gatwick airport in the UK. The group employs around 420 aviation professionals globally and operates 24/7. Air Partner is listed on the London Stock Exchange (AIR) and is the only publicly listed air charter broker and aviation safety & security consultancy. It is ISO 9001:2015 compliant for commercial airline and private jet solutions worldwide. More information is available on the Company's website (www.airpartnergroup.com).