Avolon Q1 2025: Fleet Expansion, Financing Highlights, and Credit Rating Review

Avolon, a global aviation finance company, reported Q1 2025 highlights including the acquisition of 115 aircraft, sale of 34 aircraft, and a fleet of 1,096 aircraft. The company raised $850 million in senior unsecured notes and placed 15 aircraft from its orderbook, ending with 97% placed for the next 24 months. Avolon's owned, managed, and committed fleet increased to 1,096 aircraft, including orders and commitments for 457 fuel-efficient, new technology aircraft. The company was placed on review for upgrade by Moody's (Baa3) and Fitch (BBB-).

DUBLIN, Apr 7, 2025 — Avolon, a leading global aviation finance company, released its Q1 2025 financial update, highlighting significant achievements in fleet expansion and capital management. The company reported acquiring 115 aircraft, including the completion of the acquisition of Castlelake Aviation Limited, which expanded its owned and managed fleet to 639 aircraft. Additionally, Avolon sold 34 aircraft and ended the quarter with 66 aircraft agreed for sale, maintaining a robust pipeline.

Avolon's owned, managed, and committed fleet grew to 1,096 aircraft, with 457 fuel-efficient, new technology aircraft orders and commitments. The company successfully placed 15 aircraft from its orderbook, achieving a 97% placement rate for the next 24 months. This strategic move underscores Avolon's commitment to modernizing its fleet and enhancing operational efficiency.

A key financial highlight was Avolon's issuance of US$850 million in senior unsecured notes due 2030. The proceeds were used to repay secured debt, demonstrating the company's disciplined approach to capital management. Avolon's balance sheet strength and liquidity also facilitated the acquisition of the Castlelake portfolio, further bolstering its financial position.

Avolon's positive financial trajectory was reflected in its credit ratings review. Moody's placed the company on review for an upgrade to Baa3, while Fitch also indicated a positive outlook, recognizing Avolon's robust financial performance and strategic growth initiatives.

With a diversified fleet and strong balance sheet, Avolon continues to drive the transformation of aviation and the economic and social benefits of global travel. The company's focus on long-term investment, risk diversification, and efficient capital management positions it well for future growth and market opportunities.