- Annual pre-tax loss of $70m on 13 per cent lower revenue of $135m
- $87.4m impairment charge on fleet and $25.4m charge for expected credit losses on receivables
- Sale of three former Virgin Australia aircraft by year-end to increase liquidity
Aircraft leasing company Avation (AVAP:102p) has endured its most challenging year since listing its shares on London’s junior market. As has been widely reported, the Covid-19 pandemic put the airline industry into a tailspin as operators’ cash flow dried up overnight, one of the many challenges faced by aircraft leasing companies.
The financial cost to Avation has been an $87.4m (£63.7m) impairment charge on its fleet of 44 aircraft which are leased to 19 airlines across 15 countries. The group also booked a $25.4m charge for expected credit losses on receivables in the 12 months to 30 June 2021. The $162m decline in fleet assets to $1.08bn reflects the sale of aircraft during the financial year, too.