Regional aircraft lessor Aerocentury yesterday reported a net profit of USD1.9 million in 1Q2010, sending its share price soaring 12%. The company, which leases aircraft to regional airlines and general commercial users, reported net revenue of USD8 million for the quarter, an increase of 10% year-on-year.
Much of the revenue increase was due to a one-off USD600,000 gain from insurance proceeds, after one of its DHC-8-100 aircraft sustained significant damage in Jan-2010. EBIT was USD2.9 million, an increase of USD1 million over 1Q2009.
Mainline lease revenue was up just 3.9%, due to new operating lease revenue from aircraft engines purchased during 2009. The new revenue was partially offset by aircraft that were off lease in the quarter, as well as a slight drop in maintenance income.
Costs were down 3.3%, mostly due to lower depreciation and interest expenses.
Selected Aviation suppliers’ daily share price movements (% change): 13-May-2010