Avation PLC (LSE:AVAP) has marked its twentieth anniversary by reporting a fully leased aircraft fleet, an expanded orderbook for ATR turboprops and continued progress in strengthening its balance sheet.
The Singapore-based aircraft leasing company said strong passenger demand across the Asia-Pacific region and limited availability of new aircraft have continued to support lease rates and aircraft values.
Fleet Fully Deployed as Lease Revenue Builds
Avation’s portfolio currently comprises 33 aircraft leased to 17 airlines operating across 17 countries, including a mix of narrowbody jets, ATR turboprops and a widebody aircraft.
With every aircraft on lease, the company has accumulated approximately US$321 million of contracted lease revenue yet to be recognised, providing strong visibility over future earnings.
The remaining average lease term across the portfolio stands at approximately 4.1 years, supporting predictable long-term cash flows.
ATR Orderbook Expanded
The company has increased its commitment to the regional aviation market by converting existing purchase rights into firm orders for 13 ATR 72-600 aircraft scheduled for delivery through 2029.
Avation also retains purchase rights over a further 19 ATR aircraft extending to 2034, giving the company flexibility to expand its fleet while benefiting from previously agreed pricing.
Management believes the enlarged orderbook positions the business to capitalise on continued demand for regional turboprop aircraft and said it is also evaluating selective acquisitions of narrowbody aircraft in the secondary market.
Continued Fleet Growth and Balance Sheet Improvement
Since June 2025, Avation has delivered and placed two new ATR 72-600 aircraft with airlines in South Korea and Cambodia.
The company has also successfully transitioned seven ATR 72-600 aircraft to five airline customers, including Finnair, and expects to deliver a further three aircraft before the end of 2026.
Financially, Avation continued to reduce leverage by repaying US$130 million of secured debt and increasing the number of unencumbered aircraft in its portfolio to 10.
The company also refinanced its unsecured debt through the issuance of US$300 million of Senior 8.5% Notes due in 2031.
As of mid-July 2026, Avation held approximately US$105 million in unaudited cash balances and has repurchased more than eight million ordinary shares since June 2025 under its ongoing share buyback programme.
Financial Risks Remain
Although the company has made progress in strengthening its balance sheet, Avation continues to operate with relatively high leverage and remains affected by negative profitability.
Technical indicators also remain weak, suggesting cautious near-term market sentiment despite positive operational developments and continued capital management initiatives.
About Avation PLC
Avation PLC is a Singapore-based commercial aircraft leasing company that owns and manages a fleet of passenger aircraft leased to airlines around the world.
Its portfolio includes narrowbody jets, ATR turboprops and a widebody aircraft, with a particular strategic focus on regional aviation in the Asia-Pacific market.
Over the past two decades, the company has built long-term relationships with airlines across multiple regions while expanding its fleet through disciplined acquisitions, active asset management and a combination of secured and unsecured financing.
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