Avation to pay down debt, optimise fleet after Boeing aircraft sale.

Aircraft leasing company Avation is to sell a Boeing 777-300ER widebody aircraft for a “material profit above book value”.

Avation
11 June 2025 15:31:47

Source: Sharecast

The company said that the sale of the plane, currently on lease to Philippine Airlines, is expected to release $33m in net cash proceeds once the associated debt finance has been paid off.

Avation will use the cash to lower debt and may reinvest proceeds into narrowbody aircraft in the secondary market to “optimise” its fleet’s risk profile.

Avation’s chair Jeff Chatfield said he was “delighted” by the agreement.

“We believe that the market values for modern commercial aircraft are materially higher than our book values and we are experiencing favourable market conditions. This Boeing 777-300ER has been a valuable investment, however, by policy we try to focus on aircraft types currently in production and we formed a view that it was time to divest this asset.”

Shares were up 3.1% at 150p by 1513 BST.

N/A

ISIN: N/A

Exchange: N/A

Sell:

N/A

Buy:

N/A

Change:

Date:

Prices delayed by at least 15 minutes

Chart not available

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

View our accounts

Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.