SMBC Aviation Capital results for the full year ended 31 March 2021

Editor -

Dublin, 25 May 2021: SMBC Aviation Capital, one of the world’s leading aircraft leasing companies, today announces its results [1] for the full year ended 31 March 2021.

FY2020 Highlights – Resilience while positioning for the future

  • Shareholder support increased by $1.2bn to $11.8bn comprising $3.1bn equity and $8.7bn debt.
  • Available liquidity of $4.9bn at year end
  • A- ratings confirmed by S&P and Fitch
  • Business generated profits of $15.2m continuing its 20 years record of operating profitability, despite the worst year the industry has ever experienced
  • Closed $3bn of new transactions with leading airline credits in the 12 months ending 31 March 2021 – equating to 29% of pre-COVID portfolio. Includes $1.1bn of transactions in North America and airline counterparties include EasyJet, Wizz, Southwest, Delta, United, Peach
  • Signed agreement with Boeing to purchase an additional 14 Boeing 737MAX aircraft with deliveries scheduled to commence in late 2021 and continuing into 2022
  • 83% of portfolio comprised of narrowbody aircraft. Fuel efficient, lower-emission new technology assets now represent 57% of portfolio and expected to grow to 80% within 3 years

Commenting on the company’s performance, Peter Barrett, CEO, SMBC Aviation Capital said:

“Despite the challenges and ongoing uncertainty from Covid-19, SMBC Aviation Capital’s balance sheet strength, focused high-quality asset portfolio and rapid realignment of capex to close $3bn of transactions with leading airline credits, has anchored highly resilient performance over the year, strongly positioning us to be a leading beneficiary of the recovery now taking place.

We believe that 2021 will be an inflection point for the industry and that our focus on the newest technology, lower carbon emitting, narrowbody aircraft types places us on the right side of customer demand for the short-haul and low-cost carrier led recovery that is underway. We are pleased to have concluded an agreement with Boeing for the purchase of 14 low-cost carrier configured 737MAX aircraft which is an aircraft we are seeing increased customer demand for following its successful return to service.

As airlines focus on repairing their balance sheets, we expect to see increasing demand for our leasing product and we are strongly positioned to emerge from the crisis with renewed momentum and seize further opportunities that are aligned with our long-term strategy.”