11-Mar-2011 4:15 PM
Aircastle profit slips by a third in 2010
Analysis
Aircastle reported a drop in revenue of 7.5% year-on-year and a 35.8% decrease in net profit in 2010. It was a "watershed" year, with demand for passenger and freight aircraft rising above pre-recession levels and growth rates returning to their long-term trajectory.
The company is encouraged by a favourable supply-and-demand trend for 2011, with continued delays in new platforms such as B787, B747-8 and A350 XWB are expected to amplify the scarcity effects, particularly for widebodies. Aircastle shares traded down 4.6% yesterday, on a mixed day for leasing company stocks.
Aircastle financial highlights for the 12 months ended 31-Dec-2010:
- Revenue: USD527.7 million, -7.5% year-on-year;
- Lease rental: USD531.1 million, +3.8%;
- Maintenance revenue: USD15.7 million, -73.3%;
- Total costs: USD461.5 million, -0.3%;
- Profit from continuing operations before tax: USD72.4 million, -34.9%;
- Net profit: USD65.8 million, -35.8%;
- Total assets: USD4859 million, +9.1%;
- Total liabilities: USD3516 million, +11.2%;
- Fleet:
- Passenger aircraft: 111;
- Freighter: 25;
- Number of lessees: 64.
Selected Lessors daily share price movements (% change): 10-Mar-2011
