Avation PLC Provides Trading Update, Sees Positive Industry Trends
Why we think this is good
The trading update from Avation PLC paints a cautiously optimistic picture for the company. While the RNS does not provide specific financial metrics, it highlights positive industry trends such as strong growth in passenger air travel, particularly in the Asia-Pacific region where Avation's fleet is concentrated. The company has also made progress in reducing debt and maintaining a strong cash position, which is a positive sign. However, the RNS also mentions some potential headwinds, such as supply chain constraints impacting new aircraft deliveries. Overall, the tone of the update is relatively upbeat, indicating the company is performing well in the current market environment.
Key Points
- Passenger air travel grew 8.0% in the year to 30 April 2025
- Avation's fleet of 33 aircraft is currently fully leased and utilized
- Avation has orders for 10 ATR 72-600 aircraft and holds purchase rights for 24 additional ATR 72-600s
- Avation has continued to de-lever its balance sheet, paying down secured loans and repurchasing senior notes
- Avation has current total cash balances of US$125 million
Summary
Avation PLC's trading update highlights several key points: Market: According to IATA, passenger air travel grew 8.0% in the year to 30 April 2025, with strong growth in international and Asia-Pacific travel. Fleet: Avation's fleet of 33 aircraft is currently fully leased and utilized. The company has sold some older aircraft and acquired a newer Airbus A320-200. Orderbook and Purchase Rights: Avation has orders for 10 ATR 72-600 aircraft and holds purchase rights for 24 additional ATR 72-600s. Debt and Liquidity: Avation has continued to de-lever its balance sheet, paying down secured loans and repurchasing senior notes. The company has current total cash balances of US$125 million.