DAE takes off with robust business growth in Q1 2021
Having acquired 13 new fuel-efficient commercial aircraft – including Boeing 737 MAX 8 assets – this year and eyeing a marked recovery in its large domestic markets Dubai Aerospace Enterprise (DAE) on May 5, 2021, reported its financial results for Q1 2021.
The Dubai-headquartered global aviation services company reported strong business momentum with sequential lease revenue growth of 7.1% in Q1 2021, together with owned and managed aircraft asset acquisitions and sales of US$573 million and US$152 million, respectively.
The company’s operating cash flows was pegged at US$218 million in Q1 2021, with adjusted profit before tax of US$25.0 million impacted by higher loss allowance.
Firoz Tarapore, Chief Executive Officer, DAE, said: “We saw a robust level of business activity in Q1 2021 in both our aircraft leasing and engineering divisions.
“Revenue at DAE’s engineering division [Joramco] hit a record high, and DAE’s aircraft leasing division recorded sequential growth in lease revenue driven by net additions to our owned portfolio.
“We continued to underwrite new technology aircraft and grew our aircraft portfolio by taking delivery of 13 fuel-efficient aircraft in Q1 2021,” Tarapore added.
Tarapore, who holds an MBA in finance, continued: “Since the onset of the [Covid-19] pandemic, we have added US$69.8 million to our loss allowance, which now stands at US$84.3 million.
“In addition, we augmented our liquidity position by issuing US$1.55 billion of new, unsecured debt in Q1 2021 with an average maturity of 5.25 years.”
Tarapore, who joined DAE in 2007 as CFO and became CEO in 2013, also noted that “air traffic demand in large domestic markets is recovering at an encouraging pace”.
He also stated that “cross-border travel is recovering at a slower and more uneven pace despite considerable pent-up demand globally.
“We remain confident that deployment of vaccines in the next six months will be faster and more broad-based than it has been heretofore, and this will form the foundation for the next leg up in international, regional and domestic air travel growth,” Tarapore concluded.
DAE’s aircraft leasing division currently manages a fleet of 425 Airbus, ATR and Boeing aircraft.
The company’s leasing and engineering division serves over 170 customers around the world from offices in Dubai, Dublin, Amman, Singapore, New York, Miami and Seattle.