Singapore headquartered Aircraft lessor, BOC Aviation recently announced its financial results for the first half of 2020 (1H 2020). The lessor reported an increase in profit of $323 million for the period compared to the profit made in 1H 2019 of $321 million. The business had also increased its assets by 14% to $22.6 billion during the first half of 2020 with a portfolio of 334 owned, 40 managed and 197 committed aircraft at the end of June 2020.

BOC Aviation Aircraft Portfolio (at the end of June 2020)

BOC Aviation Aircraft Portfolio (at the end of June 2020)

The lessor during the period also changed its order book by purchasing 86 additional aircraft while it changed its Boeing 737 Max order which leaves the lessor with 197 aircraft on order that will be delivered through till the end of December 2024. They’ve also managed to sign up airlines for 76 lease commitments during the COVID-19 Pandemic (1H 2020) with the aircraft set to be delivered from BOC Aviation’s’ order book before 2023 while delivering 23 aircraft during 1H 2020. 5 aircraft were sold from the lessor’s owned fleet with the average age of the 334 aircraft owned at an average age of 3.5 years with leased out aircraft holding an average remaining lease term of 8.5 years.

BOC Aviation Lease Portfolio (at the end of June 2020)

BOC Aviation Lease Portfolio

BOC Aviation’s customer base consists of 91 airlines from 4 countries for their owned and managed fleet, with their owned aircraft utilisation at a strong 99.8% and they’ve collected cash from 88.8% of their airline customers during 1H 2020.

The lessor ended June with a strong liquidity position of $4 billion and $19 billion of committed future lease revenues which should help the business sustain its operations at least for the short to medium term till the industry picks up again and more airlines look for additional capacity.