SINGAPORE (Reuters) - Hong Kong-listed aircraft lessor BOC Aviation Ltd (2588.HK) reported a 22 percent jump to record full-year net profit on Monday, supported by growth in global air travel, and signalled an upbeat industry outlook.
As airlines increasingly opt to lease planes, Asian lessors are investing billions of dollars to expand, having won backing from cash-rich banks and financial investors. Last year, BOC Aviation raised $1.1 billion in the biggest IPO by an aircraft lessor.
BOC Aviation’s net profit rose to $418 million in the year ended Dec. 31 on a 9 percent increase in total revenue and other income to $1.19 billion.
“The economies that are commodity-based are beginning to pick up. Growth in domestic markets - Brazil, Russia, India and China - particularly towards the end of the year was good,” the company’s CEO Robert Martin told Reuters.
The Singapore-headquartered firm, which has a portfolio of 284 aircraft, expects to take record deliveries of over 75 aircraft this year.
BOC Aviation said the market for aircraft funding remains strong, with the company having over $4 billion in committed facilities.
Global demand for air travel in January rose 9.6 percent, the sharpest increase in more than five years, boosted by surging demand in domestic passenger markets in India and China.
Reporting by Anshuman Daga; Editing by Edwina Gibbs