Aircastle sees huge market potential as financial sector continues to recover

Shares in leasing companies made minimal movement in trading on Wednesday. Avation PLC shares were up 1.4%, while Aircastle stock rose 0.6%. ALAFCO shares fell 1.4%, as Middle East markets remain fragile in the face of continuing social and political unrest in the region.

Aircastle provided the following business updates at the JP Morgan Aviation, Transportation and Defence Conference

  • Fleet utilisation:
    • Expected 1Q2011 revenue utilisation of at least 98% and rental yield of around 14%;
    • Lease placement and aircraft sales.
  • 2011 leasing:
    • 9 of 11 scheduled lease expirations placed/contracted for sale;
    • Five aircraft leases early terminated in1Q2011, one A319 in Jordan and four A320s in Egypt.
  • 2012 leasing:
    • Signed lease with Virgin Blue for one new A330-200 delivering in spring 2012 leasing;
    • 24 aircraft with scheduled lease expiries;
    • Making progress on 2012 lease roll-off.
  • Aircraft sales:
    • Four B737-400SF sales sold in 1Q2011, expected to result in pre-tax income of USD9.5million;
    • Two additional contracted sales in 2011;
      • One 737-500 in 2Q2011;
      • One 757-200 in 4Q2011.
  • Aircraft deliveries:
    • Eight A330s to be delivered during 2011 and H1 2012. Signed long-term leases for all aircraft;
    • Bank commitments in place to finance all 2011 deliveries based on Export Credit Agency support.

See story: Aircastle bullish on aircraft values; sees 'life yet in current narrowbodies'

Selected Lessors' daily share price movements (% change): 24-Mar-2011