Avation Targets 14% Annual Fleet Growth Through 2030 Amid Aircraft Supply Constraints
Avation PLC (LON:AVAP) plans to grow its aircraft leasing fleet at a compound annual rate of around 14% through 2030, supported by existing firm orders for 13 aircraft and purchase rights on an additional 19. The company also expects to acquire approximately two secondary-market aircraft per year. Avation aims to return to its pre-COVID peak fleet size of about 48 aircraft by June 2029 if it continues with these acquisitions. The firm is capitalizing on ongoing supply constraints at major manufacturers like Boeing (BA), Airbus (AIR.PA), Embraer, and ATR. These delays are supporting higher lease rates and aircraft values in the market. Avation has focused its strategy on acquiring more ATR turboprops due to shorter delivery times compared to narrow-body jets and their ability to diversify risk. Avation's financial position is improving with extended debt maturities, stronger credit metrics, and a share price that management estimates trades at about 50% below book value. The company has repurchased nearly 22% of its shares over the past two years and is considering listing in the U.S.
Topics: Airbus aircraft leasing ATR Boeing Embraer fleet growth supply constraints