Robust demand drives revenue at Avolon and underpins $297m dividend payment

DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Irish Times, click this post to read the original article.

Robust demand for aircraft drove revenue at lessor Avolon 7 per cent higher in 2025, the company said, with net income rising almost 30 per cent.

The Dublin-based aircraft lessor said it generated lease revenue of $2.8 billion (€2.35 billion) last year, with total revenue of $3 billion and operating cash flow reaching a record of $2.1 billion.

Net income was $591 million, up 29 per cent year on year. That did not include the positive impact of insurance settlements in 2024.

Avolon declared a dividend of $151 million for the second half of the year, bringing the total dividend for the year to $297 million.

The year saw Avolon acquire 168 aircraft, including more than 100 as part of the Castlelake Aviation deal, while it sold 95 aircraft during the 12-month period and a further 72 aircraft were agreed for sale at year end.

[ Avolon orders 90 Airbus jetsOpens in new window ]

Avolon ordered 90 new aircraft during the year, including 75 Airbus A321s and 15 A330s. The manufacturer is due to deliver these jets out to 2033, the company confirmed.

It ended the year with an owned, managed and committed fleet of 1,132 aircraft.

Chief executive Andy Cronin said 2025 had been a very successful year for the company.

“Our strong performance was supported by higher lease rates, robust demand for aircraft, and constructive funding markets,” he said.

“Given the ongoing shortage of aircraft, we are in a favourable position to support our customers’ growth prospects with our industry-leading order book through to the next decade.”

Backlogs of up to 11 years at leading manufacturers Airbus and Boeing have left aircraft supplies trailing demand, according to Avolon’s chief risk officer Jim Morrison, and its senior vice-president, portfolio strategy, Ross McKeand.

This supports demand for the aircraft owned by Avolon and other lessors, underpinning their value, they say in the company’s 2026 industry outlook, Upnext, published last month.

Boeing increased deliveries by 73 per cent last year, but Airbus only upped its deliveries by 3.5 per cent, the report says.

Morrison and McKeand predict that the undersupply of wide-body aircraft, used for long-haul flights could last longer than the industry expects.