BOC Aviation's profit for 2024 totalled a record $924 million, up 20.9% compared to 2023.
“Growth in core earnings was a large contributor to that improvement, as were ongoing recoveries related to aircraft in Russia,” said company chairman Zhang Ziaolu.
The company's core business generated a profit after tax of $633 million, increasing 16% on 2023. Aircraft recoveries and insurance proceeds accounted for $176 million and $115 million, respectively. The company said it has now complete recovery of its 2022 write-downs.
On the back of its strong results, the company declared a final dividend for 2024 of $0.267 per share.
Total revenues and other income increased 4% to $2.6bn. The company's costs and expenses were $1.5bn, down from $1.6bn in 2023. Profit before tax was $1bn, up from $861 million in 2023.
“Despite manufacturer production shortfalls, we delivered 38 new aircraft to airline customers in 2024,” said company CEO and managing director Steven Townend. “However, 27 aircraft scheduled for delivery were delayed into 2025.”
The company said it has 47 aircraft scheduled for delivery to customers this year. Townend added: “[All 47 aircraft] are placed with airline customers at favourable rates, with all scheduled lease expiries either extended or committed to another customer. We aim to build on this strong base of aircraft deliveries throughout the year while also pipelining future deliveries to support long-term sustainable growth."
Townend said during the company's earnings call that it the company is “confident” of receiving more aircraft this year as OEMs ramp up production this year. However, he said the company's expects the supply and demand imbalance to remain through to the end of the decade.
The company ended 2024 with a fleet of 467 owned and managed aircraft, along with an orderbook of 232 aircraft. The company also ended the year 10 engines, all on lease or contracted for sale to airline customers, as it continues to invest in aircraft engines.
During the year, the company sold 29 aircraft to airlines, investors, and other leasing companies. The strong demand led to a 51% increase in pre-tax profit from aircraft sales, reaching $118 million. The average age of the aircraft sold, which included five mid-life widebodies, was 9.3 years.
The company's weighted average age of five years and a weighted average remaining lease term of 7.9 years.
The company ended the year with total assets of $25.1bn, funded by total debt of $16.6bn. Total equity reached $6.4bn.
For 2025, the company has $2.6bn of debt obligations. This, along with its anticipated capex for the year, can be funded through its cashflow and committed liquidity of $6.5bn.