Dubai Aerospace turns profit after Aeroflot settlement

Dubai Aerospace

The aircraft leasing company Dubai Aerospace Enterprise (DAE) turned profitable in 2023, as it received a settlement of $118.3 million for seven aircraft leased to Russia’s Aeroflot airline.

The company reported a net profit of $350.6 million for 2023, a turnaround from a loss of $279.3 million a year ago.

Revenue rose 16 percent to $1.32 billion last year, up from $1.14 billion in 2022. 

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The company acquired 20 aircraft (10 owned and 10 managed) and sold 30 (22 owned, eight managed) last year.

The gain on disposal of aircraft stood at $59.6 million for the year, down 39 percent from $97.5 million for the year ended December 31, 2022.

“Our engineering division posted record results with sizeable increases in output and revenue,” said Firoz Tarapore, CEO of DAE.

“We are continuing to invest in the facility, having broken ground during the year on additional hangar capacity and announcing a partnership with Boeing to become the first facility in the Middle East to be authorised to complete Boeing 737-800BCF conversions.”

Total assets reached $12.26 billion last year, falling 3.5 percent from $12.71 billion in 2022.

The aircraft lessor’s order book stands at 64, after 150 lease agreements, extensions and amendments were signed last year.