Jet lessor Dubai Aerospace Enterprise recorded a first-half loss after a $576.5 million write-off related to “loss of control” over planes it had previously leased to airlines based in Russia.
DAE incurred a loss of $397.8m in the first six months of 2022, compared with a profit of $49m in the previous 12-month period, it said in a statement on Thursday.
However, before net exceptional items, the Dubai-based plane lessor said it had earned a profit of $140.1m during the six-month period, ending June 30.
DAE had leased 22 aircraft to Russia-based airlines but ended the contracts in compliance with western sanctions following Ukraine war. The company said that it had “no control” over 19 jets currently in Russia.
“The group has no way to determine whether these aircraft will be returned at any point in the future,” DAE said.
The company is now focused on filing insurance claims to recover the amounts due after the write-off. It fully expects to recover these funds but it will “take time to get resolved”, Firoz Tarapore, chief executive of DAE, said in an earnings call on Thursday.
DAE's total revenue of $582.8m for the six months of 2022 was down by 5 per cent to $613.4m for the same period last year.
This is due to lower net lease revenue, primarily because of lease terminations of aircraft in Russia, cash accounting on customers who entered administration and lease restructurings due to the Covid-19 pandemic, the company said.
DAE Capital, which continues to be active in the secondary trading market, has committed about $750m in the first half of the year to acquire assets for both its owned and managed portfolios, the company said.
In terms of asset sales, DAE said it had secured a mandate to acquire up to $1.75bn of additional aircraft assets.
During the first half of the year, the lessor acquired 34 aircraft and sold 27 jets, it said.
It also signed 85 lease agreements, extensions and amendments during the period.
The total number of aircraft in DAE's fleet as of June 30 had reached 390, comprising 297 owned jets, 85 managed and eight committed aircraft.
Cash flows from operating activities for the January to June period increased by 36.1 per cent to $678.5m.
“Air travel demand continues to be strong and all leading indicators continue to point to a strong summer season for our airline customers,” Mr Tarapore said in a statement.
Supply side constraints, particularly among airports, as well as inflationary concerns, have not dented demand, but are likely to be a key constraint as airlines work towards returning to 2019 levels, he said.
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ENGLAND TEAM
Alastair Cook, Mark Stoneman, James Vince, Joe Root (captain), Dawid Malan, Jonny Bairstow, Moeen Ali, Chris Woakes, Craig Overton, Stuart Broad, James Anderson
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The specs
Engine: 2.3-litre, turbo four-cylinder
Transmission: 10-speed auto
Power: 300hp
Torque: 420Nm
Price: Dh189,900
On sale: now
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Day 4, Abu Dhabi Test: At a glance
Moment of the day Not much was expected – on Sunday or ever – of Hasan Ali as a batsman. And yet he lit up the late overs of the Pakistan innings with a happy cameo of 29 from 25 balls. The highlight was when he launched a six right on top of the netting above the Pakistan players’ viewing area. He was out next ball.
Stat of the day – 1,358 There were 1,358 days between Haris Sohail’s previous first-class match and his Test debut for Pakistan. The lack of practice in the multi-day format did not show, though, as the left-hander made an assured half-century to guide his side through a potentially damaging collapse.
The verdict As is the fashion of Test matches in this country, the draw feels like a dead-cert, before a clatter of wickets on the fourth afternoon puts either side on red alert. With Yasir Shah finding prodigious turn now, Pakistan will be confident of bowling Sri Lanka out. Whether they have enough time to do so and chase the runs required remains to be seen.
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
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