Aviation Kuwait aircraft lessor Alafco slashes losses By Gavin Gibbon January 4, 2024, 4:58 AM Creative Commons/Md Shaifuzzaman Ayon Alafco leases Airbus and Boeing aircraft to airlines including Air India, Malaysia Airlines and Kuwait Airways Lease revenue down 63% Other income up 121% Net losses KD1.2m Kuwait’s state-funded aircraft leasing firm, Alafco, has cut its annual net losses by 98 percent, the company said at its latest earnings presentation. Alafco, whose shareholders include the Kuwaiti government, said operating lease revenue dropped by 63 percent to KD35.9 million ($116.74 million) for the financial year ending on September 30. However, this was made up for by a 121 percent increase in other income and the agreed sale of 53 aircraft to the Australian outfit Macquarie Airfinance, as part of an extensive restructuring process. Kuwait aircraft firm Alafco explores sale over losses EgyptAir needs 34 more aircraft to meet demand Kuwait Airways cuts losses by 50% as revenue soars Net losses for the financial year 2022-23 were down to KD1.2 million, from KD58.9 million the previous year. The company said that no impairment provision had been charged by Alafco during the period, while savings were made on not having to record depreciation for the 53 aircraft to be sold. Other expenses, including aircraft maintenance, storage fees and collection expenses were also reduced, investors and analysts were told. The lessor sold 27 of the 53 aircraft to Macquarie over the course of the year and transferred the ownership of 20 Boeing 737-8 Max aircraft, which are currently on order. Delivery was also taken of two A320 Neo aircraft leased to the Mexican low-cost carrier Volaris. Alafco, which counts Kuwait Airways, Air India, Hong Kong Airlines and Oman’s SalamAir as customers, had 51 aircraft in its portfolio as of September 30, with an average age of 4.9 years. Its average remaining lease term is eight years. The global aircraft leasing market is projected to grow more than 80 percent, from $172.9 billion in 2023 to $317.5 billion by 2030, Fortune Business Insights says.
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