Avolon, the international aircraft leasing company, issued its 2020 outlook paper titled ?Navigating Through Turbulence'. The paper, written by Avolon's Jim Morrison and Steve Mason, reviews key aviation industry trends in 2019 and offers fearless forecasts for 2020.
The full paper is available at: https://www.avolon.aero/newsroom-and-thoughts
2020 ?Fearless Forecasts'
Jim Morrison, Vice President - Aircraft Evaluation commented: "The end of the decade marks a period of remarkable achievement for the aviation industry with a full decade of airline profitability. However, 2019 will be remembered as much for the lows as the highs."
"The year was headlined by aircraft manufacturers. The aviation industry grappled with the repercussions of the tragic B737 MAX accidents while Airbus struggled with aircraft delivery delays. During 2019, we saw more than 20 carriers fail but, despite this, global airlines' net profit remained robust at an estimated US$26 billion. These failures underpinned our previous years' assertion that, despite high load factors, there were too many cheap seats available. These airline failures resulted in a record number of aircraft being released to the market. Lessors were able to successfully re-market and re-deploy many of their aircraft, reflecting strong market appetite for aircraft transitions and air travel demand."
Steve Mason, Senior Vice President - Commercial added: "Looking ahead to 2020, geopolitical uncertainty and international trade tensions will define the year. Through this turbulence will emerge opportunity. While improved airline profitability is forecasted, many sizeable carriers remain on life support. The still-buoyant global economy and the expanding middle class will continue to drive long-term passenger demand, supporting airline capacity growth. For lessors, investment grade rated players with global platforms are best positioned to seize any opportunities that may be presented. While efficiency improvements have long been a hallmark of aviation, 2020 is set to be the baseline year for the sector's carbon emission offsetting and reduction scheme which will transition air travel to carbon neutral growth."
Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon is 70% owned by an indirect subsidiary of Bohai Leasing Co., Ltd., a public company listed on the Shenzhen Stock Exchange (SLE: 000415) and 30% owned by ORIX Aviation Systems, a subsidiary of ORIX Corporation which is listed on the Tokyo and New York Stock Exchanges (TSE: 8591; NYSE: IX). Avolon is the world's third largest aircraft leasing business with an owned, managed and committed fleet, as of 31 December 2019 of 925 aircraft.
Note Regarding Forward-Looking Statements
This document includes forward-looking statements, beliefs or opinions, including statements with respect to Avolon's business, financial condition, results of operations and plans. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond our control and all of which are based on our management's current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as "believe," "expects," "may," "will," "could," "should," "shall," "risk," "intends," "estimates," "aims," "plans," "predicts," "continues," "assumes," "positioned" or "anticipates" or the negative thereof, other variations thereon or comparable terminology or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. Forward-looking statements may and often do differ materially from actual results. No assurance can be given that such future results will be achieved.
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