Irish based aircraft lessor Avolon has reported a net quarterly loss of $162 million for the three months to the end of June.
That was down from profit of €185 million in the same period last year.
The company, like most in the aviation sector, has been impacted by the fallout from global travel restrictions imposed as a result of the coronavirus pandemic.
When the numbers are adjusted to exclude non-cash impairment charges and the writing off of costs related to airline restructurings, the company reported an adjusted profit of $152 million.
Lease revenue for the three month period was $619 million.
The company reported that it was in a strong liquidity position at the end of June with total liquid assets amounting to $5.1 billion.
It said many of its customers had entered into short-term rental deferral arrangements by the end of June or were in arrears.
The lease revenue collection rate for the first half stood at 68%.
“The second quarter was undoubtedly a challenging period for the aviation sector, and our results clearly show the impact of this crisis,” Dómhnal Slattery, Avolon CEO said.
“While at an early stage, we have seen traffic trends in certain markets that suggest that the structure and quality of our portfolio leaves us well positioned to take advantage of the recovery when it does take hold,” he added.
Avolon owned and managed a fleet of 547 aircraft by the end of the quarter.
It cancelled or removed commitments to acquire 28 aircraft between this year and 2022 as well as deferring an order for three A320 neo aircraft until 2022.
That’s on top of the cancellation of orders for 75 B737MAX aircraft in the first quarter of this year.