Latest news with #AndyCronin
Irish Times
24-07-2025
- Business
- Irish Times
Avolon orders 90 Airbus jets
Irish aircraft lessor Avolon has ordered 90 new passenger jets estimated to be worth at least €12 billion from European giant Airbus as it bets that global demand for flying will keep gaining altitude. Dublin-based Avolon, which buys aircraft from manufacturers and leases them to airlines, said profits grew 36 per cent to $143 million (€122 million) in the three months to June 30th. The company confirmed that it had ordered 90 new aircraft from leading commercial jet manufacturer Airbus that will be delivered over the next eight years. The order, for 75 A321 aircraft used for short-haul flying and 15 A330s, designed for long distances, is worth more than €12 billion based on prices published by Airbus. READ MORE However, Avolon can negotiate significant discounts on those figures and does not comment on prices. Shareholders in its parent, China's Bohai Leasing, must approve the deal. Avolon continues to see strong growth in demand for flying around the world as more people in developing countries begin earning enough money to travel, according to its chief executive, Andy Cronin. [ Avolon raises $1bn bank facility Opens in new window ] 'We believe that that will continue for the foreseeable future,' he said. 'Aviation has shown its resilience against multiple challenges in the last few years.' Recent figures from the International Air Transport Association show travel demand is up almost 6 per cent this year. Delays in getting critical parts for aircraft and other problems are hindering manufacturers such as Airbus' and Boeing's ability to keep up with demand. How will the updated National Development Plan shape Ireland in years to come? Listen | 35:59 Mr Cronin acknowledged that this could affect the order's schedule. 'I would be surprised at the end of eight years if everything runs perfectly on time. The world doesn't work like that,' he said. However, he explained that placing the order gave Avolon an advantage over rivals as it secured its place in the queue as aircraft become available. Mr Cronin noted that both types of plane were in demand. 'This demonstrates our confidence in the long-term demand for new aircraft,' he said in a statement. [ Avolon profits soar, helped by $150m net insurance payout relating to aircraft in Russia Opens in new window ] Benoît de Saint-Exupéry, Airbus executive vice president, predicted that Avolon's order would open new markets and add customers for both models. Avolon expects airlines in Asia, India, Europe and North America to lease the new aircraft. The company had agreed lease deals for 98 per cent of its current order book, including the 140 jets pledged from Airbus and Boeing in 2023, by the end of June. Many of those jets went to Asian carriers, said its chief executive. In Europe airlines are replacing older planes with newer, more fuel efficient and quieter models. The order brings to more than 500 the total number of A320neo that Avolon owns, manages or has pledged to buy from Airbus. At the end of June it owned, managed or had on order 1,116 aircraft, while it had 142 airline customers in 60 countries. Meanwhile, Avolon is continuing with legal action against insurers who did not pay out after it lost aircraft leased to Russian airlines following the country's invasion of Ukraine in 2022. Mr Cronin said that the amount involved was not material. Insurers paid it $150 million last year, settling most of its claims. Avolon said in 2022 that political risk deterred it from doing much business in Russia. The Irish company buys aircraft from manufacturers with a combination of its own cash and borrowings. It leases the planes to airlines, earning revenue from the rent they pay. It had $8.8 billion in available debt and cash at the end of June.
Yahoo
24-07-2025
- Business
- Yahoo
Lessor Avolon orders 90 Airbus aircraft to bring total on order above 400
By Padraic Halpin DUBLIN (Reuters) -Global leasing giant Avolon said on Thursday it was ordering 75 A321neo and 15 A330neo aircraft from Airbus, bringing the number of aircraft it is due to receive from the European planemaker over the next eight years to 413. Dublin-based Avolon, the world's second-largest aircraft lessor, said the order included further purchase rights for 25 A321neos and options to buy 15 A330neos. It follows large orders it placed with both Airbus and Boeing in 2023. "We continue to see very strong demand for aircraft. We expect that trend to continue and we expect that demand to outstrip supply of aircraft over the coming years," Avolon Chief Executive Andy Cronin told Reuters. Cronin added that Avolon was also close to placing all of the 40 existing A330neo it has on order with airlines. Avolon was a launch customer for the wide-body jet in 2014. The aircraft leasing sector is responsible for around half of the planes on order with Airbus and Boeing. "Lessors are excellent barometers of the aircraft market. This endorsement illustrates the strong attractiveness to a wide variety of customers of these two aircraft," Benoit de Saint-Exupery, senior vice president of sales at Airbus' commercial aircraft business, said in a statement. Avolon, a subsidiary of China's Bohai Leasing Co Ltd, is due to start taking delivery of around 70 aircraft a year from the two main manufacturers over the next year or so. Cronin said he was confident most of those planes would be delivered on time in 2026 and 2027, but that he would be "fairly surprised" if they all arrived on schedule. Avolon also reported a 36% year-on-year increase in net income in the second quarter on Thursday, the first full quarter to include last year's $5 billion acquisition of smaller rival Castlelake Aviation Limited. Cronin said Avolon was seeing "very, very robust growth" for air travel across the world.
North Wales Live
24-07-2025
- Business
- North Wales Live
Airbus secures 90 plane order worth billions of pounds
Airbus has secured a new major plane order. Avolon, a leading global aviation finance company, has placed an order for 90 Airbus aircraft. This is made up of 15 A330neo and 75 A321neo in a deal with more than £10bn at list prices. This brings Avolon's total Airbus orders to 79 A330neos and 264 A321neos. Wings for the planes will be assembled at Airbus Broughton in North Wales. Andy Cronin, Avolon CEO, said: 'This order demonstrates our strong confidence in the long-term demand for new aircraft. Our scale and balance sheet position us to support our airline customers' expansion and replacement needs into the next decade. "Both the A321neo and A330neo are in high demand, and we expect this to continue given the long-term growth trajectory for the aviation sector. We are delighted to be expanding and extending our long-term partnership with Airbus with this order.' Sign up for the North Wales Live newsletter sent twice daily to your inbox Benoît de Saint-Exupéry, Airbus EVP Sales of the Commercial Aircraft business, said: 'Lessors are excellent barometers of the aircraft market, and we are grateful to Avolon for expanding its commitment for the A320 Family and A330neo, so soon after an earlier order two years ago. "This endorsement illustrates the strong attractiveness to a wide variety of customers of these two aircraft, the most efficient in their category with the latest technologies embedded, covering the market space from domestic to regional to long haul routes. We value this partnership which has helped open new markets and broaden the customer base for both aircraft types." Powered by the latest generation Rolls-Royce Trent 7000 engines, the A330-900 has a range of 7,200nm / 13,300 km non-stop and reduces fuel burn, CO2 emissions and operating cost by 25% compared to the previous generation aircraft. The A321neo is the largest member of Airbus' best-selling A320neo Family and brings a 50% noise reduction and more than 20% fuel savings and CO₂ reduction compared to previous generation single-aisle aircraft. As with all in-production aircraft, the A330neo and A321neo are able to operate with up to 50% Sustainable Aviation Fuel (SAF), with a target to increase to up to 100% SAF capability by 2030.
Reuters
24-07-2025
- Business
- Reuters
Lessor Avolon orders 90 Airbus aircraft to bring total on order above 400
DUBLIN, July 24 (Reuters) - Global leasing giant Avolon said on Thursday it was ordering 75 A321neo and 15 A330neo aircraft from Airbus ( opens new tab, bringing the number of aircraft it is due to receive from the European planemaker over the next eight years to 413. Dublin-based Avolon, the world's second-largest aircraft lessor, said the order included further purchase rights for 25 A321neos and options to buy 15 A330neos. It follows large orders it placed with both Airbus and Boeing (BA.N), opens new tab in 2023. "We continue to see very strong demand for aircraft. We expect that trend to continue and we expect that demand to outstrip supply of aircraft over the coming years," Avolon Chief Executive Andy Cronin told Reuters. Cronin added that Avolon was also close to placing all of the 40 existing A330neo it has on order with airlines. Avolon was a launch customer for the wide-body jet in 2014. The aircraft leasing sector is responsible for around half of the planes on order with Airbus and Boeing. "Lessors are excellent barometers of the aircraft market. This endorsement illustrates the strong attractiveness to a wide variety of customers of these two aircraft," Benoit de Saint-Exupery, senior vice president of sales at Airbus' commercial aircraft business, said in a statement. Avolon, a subsidiary of China's Bohai Leasing Co Ltd ( opens new tab, is due to start taking delivery of around 70 aircraft a year from the two main manufacturers over the next year or so. Cronin said he was confident most of those planes would be delivered on time in 2026 and 2027, but that he would be "fairly surprised" if they all arrived on schedule. Avolon also reported a 36% year-on-year increase in net income in the second quarter on Thursday, the first full quarter to include last year's $5 billion acquisition of smaller rival Castlelake Aviation Limited. Cronin said Avolon was seeing "very, very robust growth" for air travel across the world.
Business Wire
24-07-2025
- Business
- Business Wire
Avolon Net Income up 36% to US$143 Million in Q2
DUBLIN--(BUSINESS WIRE)--Avolon, a leading global aviation finance company, announces results for the second quarter ('Q2') of 2025. 2025 SECOND QUARTER | FINANCIAL HIGHLIGHTS Balance Sheet (US$M) Q2 2025 FY 2024 US$ Change % Change Total Available Liquidity 8,764 11,634 (2,870) (25%) Total Assets 34,224 33,637 +587 +2% Unsecured Debt / Total Debt 71% 67% +4ppts N/A Net Debt to Equity 2.5x 2.1x 0.4x N/A Expand Net Income of US$143 million for Q2, up 36% year on year; Ratings upgraded by Moody's and Fitch to Baa2 and BBB respectively; and placed on positive outlook by S&P (BBB-); Strong operating cashflow of US$464 million in Q2, reaching US$2.1 billion for last 12 months; Raised US$2.2 billion in new unsecured bank facilities during the quarter and completed a tender offer for US$1.2 billion of senior unsecured notes due in 2026; Post quarter end, raised US$650 million in senior unsecured notes due 2030; Total available liquidity of US$8.8 billion at Q2, including US$384 million of unrestricted cash and US$7.2 billion in undrawn debt facilities; Balance sheet comprises unsecured to total debt ratio of 71%, with net debt to equity of 2.5 times and US$21 billion of unencumbered assets; and Proposed dividend of US$146 million in respect of 1H 2025. 2025 SECOND QUARTER | FLEET HIGHLIGHTS Post quarter end, agreed an incremental order with Airbus for 75 A321neo and 15 A330neo aircraft; scheduled to be delivered out to 2033; the order is subject to final approval by shareholders of Bohai Leasing Co., Ltd; Acquired 15 aircraft, sold 20 aircraft and ended the quarter with 54 aircraft agreed for sale; Placed 26 aircraft from our orderbook, ending the quarter with 98% of our orderbook placed for the next 24 months; and Ended the quarter with an owned, managed and committed fleet of 1,166 aircraft, including orders and commitments for 532 fuel-efficient, new technology aircraft, pro forma for the incremental Airbus order announced today. Andy Cronin, Avolon CEO, commented: 'We continued our strong financial performance in Q2, delivering US$143 million of net income. The momentum in our performance has been reflected in ratings upgrades, with the agencies recognising our growing profitability, balance sheet strength, and high levels of liquidity as fundamental strengths underpinning our business. With our near term orderbook almost fully placed, and a high level of contracted aircraft sales, today's order for 90 aircraft extends our committed fleet out to 2033.' About Avolon Avolon is a leading global aviation finance company connecting capital with customers to drive the transformation of aviation and the economic and social benefits of global travel. We pride ourselves on our deep customer relationships, our collaborative team approach, and our fast execution. We invest with a long-term perspective, diversifying risk and managing capital efficiently to maintain our strong balance sheet. Working with 142 airlines in 60 countries, Avolon has an owned, managed, and committed fleet of 1,166 aircraft, as of 30 June 2025, pro forma for the new Airbus order.
