Dubai Aerospace Enterprise, one of the world's biggest plane leasing companies, said first-quarter profit rose by more than 48 per cent as it benefitted from an acquisition that increased the size of its fleet.
Profit before exceptional items in the three months to the end of March rose to $69.2 million, from $46.6 million a year earlier, the company said on Wednesday.
“Our first quarter 2023 financial results reflect a strong operating environment for airlines, an improving collections and credit profile, and profitable divestment activity,” said DAE chief executive Firoz Tarapore.
“We have successfully integrated the acquisition of Sky Fund I into our platform following the acquisition in the fourth quarter of 2022.”
Following the deal, DAE Capital’s fleet of owned, managed and committed aircraft, as well as those it has a mandate to manage, grew to about 500, DAE said in November.
DAE’s revenue in the first quarter rose to $315.2 million, from $298 million in the same period last year.
“Our profitability improved substantially during the quarter, and our credit quality and liquidity remained strong,” said Mr Tarapore.
“Interest rate volatility allowed us to repurchase $205 million of principal amount of our bonds during the quarter. We have increased our bond repurchase authorisation following additional repurchases in the second quarter.”
DAE's performance was boosted by air travel recovery, which, in turn, is driving up airlines' demand for aircraft. On the other hand, supply chain strains facing the aerospace industry are delaying aircraft deliveries.
Global passenger traffic rebounded to 15 per cent below its pre-pandemic levels in February, led by airlines in Asia-Pacific, which recorded the fastest growth, the International Air Transport Association said in its latest report.
Total passenger traffic worldwide increased 55.5 per cent on an annual basis in February, despite the uncertainties hanging over the global economy, Iata said.
Meanwhile, international passenger traffic rose 89.7 per cent from February 2022 and reached 77.5 per cent of February 2019 levels.
DAE reported a full-year 2022 loss after it wrote off $538 million on aircraft operating in the fleet of Russian airlines.
In November, DAE said it “has no way” to determine whether the aircraft it had leased to Russian aviation operators would be returned.
The group has insurance cover for 19 aircraft under a number of policies and it has filed “insurance claims and a litigation claim to recover amounts due under the policies”, DAE said at the time, without providing further details.
In December, DAE said it signed new deals for unsecured term financing worth $800 million to maintain its strong liquidity levels.
As of March 31, the company's available liquidity stood at $2.64 billion compared with $2.66 billion on December 31, 2022.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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In-demand jobs and monthly salaries
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Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
The specs: 2018 Mercedes-AMG C63 S Cabriolet
Price, base: Dh429,090
Engine 4.0-litre twin-turbo V8
Transmission Seven-speed automatic
Power 510hp @ 5,500rpm
Torque 700Nm @ 1,750rpm
Fuel economy, combined 9.2L / 100km
