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Avolon announced a commitment to order 40 Boeing 737 MAX aircraft, valued at over $4 billion at current list prices. The deliveries are scheduled between 2027 and 2030, and this will expand Avolon's fleet to a total of 870 aircraft. This decision underlines Avolon's confidence in the aviation market's recovery and aligns with their strategy to incorporate more fuel-efficient aircraft, as the 737 MAX reduces fuel use and emissions by 20%. The transaction awaits approval from Bohai Leasing Co., Ltd., Avolon’s 70% shareholder, expected by the end of May.

Avolon's Q1 2023 results highlighted strong demand in the aircraft leasing market, reporting $599 million in lease revenue and a net income of $56 million, up from a loss of $182 million in Q1 2022. Despite an 8.97% decrease in lease revenue compared to Q1 2022, operating cash flow remained robust at $310 million. The company secured an $810 million financing facility and ended the quarter with total liquidity of $5.5 billion. Avolon maintained a stable net debt to equity ratio of 2.3x and reported a secured debt to total assets ratio of 21%. The fleet included 578 aircraft, with significant commitments for new technology aircraft. Avolon also announced a commitment for 40 Boeing 737 MAX aircraft, set for delivery from 2027 to 2030, valued at over $4 billion.

Avolon reported significant financial results for FY 2022, showcasing a five-fold increase in adjusted net income to $253 million, excluding the impact of Russia. Lease revenue rose by 9% to $2.3 billion, while operating cash flow surged 35% to $1.2 billion, exceeding pre-pandemic levels. Total liquidity reached $5.6 billion. The company maintained a solid fleet of 576 aircraft and executed 237 lease transactions, strengthening its market position. Despite a reported net income decline to $9 million, Avolon anticipates positive growth in 2023, driven by rising demand and the reopening of China.

The aviation sector is poised for recovery in 2023, with global passenger traffic expected to return to pre-pandemic levels by June, driven significantly by China's reopening. Avolon forecasts a profit of approximately $4.7 billion for the sector this year following a partial recovery in 2022. Key findings indicate airlines are improving revenues despite lower traffic, while manufacturers face delivery delays leading to aircraft shortages, enhancing the long-term value of existing planes. Lease rates are expected to rise, benefiting lessors that now manage over 53% of the global passenger fleet. Sustainable Aviation Fuel (SAF) production needs substantial investment to meet future demands.

Avolon reported strong performance for 2022, executing 237 lease transactions and delivering 107 aircraft. A notable agreement with Malaysia Airlines includes financing for 20 A330-900neo aircraft valued over $2 billion. The company raised $2.2 billion in new financing, increasing its total revolving debt capacity to over $6 billion. Avolon received a Low Risk ESG rating of 16.0 from Sustainalytics and partnered for a Sustainable Aviation Fuel study. The outlook for 2023 remains positive as global travel demand recovers.