Castlelake Aviation records solid profit growth | News | Airfinance Global

Castlelake Aviation records solid profit growth


Castlelake Aviation’s net income in the first quarter ended 31 March 2024 grew to $23.36 million from $7.78 million a year earlier.

Total revenues and other income increased to $126.79 million in the quarter, up from $92.61 million, while expenses increased to $100 million from $83.95 million.

Total comprehensive first-quarter income, however, was $54.97 million. This accounts for net unrealised gains on derivatives.

As of 31 March 2024, there were 120 assets in the Castlelake portfolio.

These consisted of 88 aircraft on operating lease, down from 92 at the beginning of 2024, two aircraft on operating lease held for sale, 11 aircraft and aircraft engines on finance lease, up from nine, and 19 secured loan assets.

These assets have been financed by a number of term loans, a revolving credit facility and a bond.

Castlelake Aviation had assets of $4.99 billion as at 31 March, down slightly from the beginning of the year.

This included $3.2 billion of aircraft and engine assets held for operating lease, $411 million in finance leases, and $791 million in loan assets.

The loan assets consisted of $267.6 million lent to Asia-Pacific based airlines, $61 million to two EMEA-based lessors, and $462.5 million to an EMEA-based airline.

The Asia-Pacific based loans accrue by far the highest interest. One accrues interest at a fixed rate of 11.75% per annum and is secured by charges over intellectual property of the airlines and aircraft inventory. As of 31 March 2024, the principal of $116.7 million was drawn down.

The other three loans accrue interest at fixed rates ranging from 10.60% to 11.60% per annum and are secured against aircraft owned by the lessor. As of 31 March 2024, principal of $147.5 million was drawn down.

To compare, loans of $61 million provided to the two EMEA based lessors accrue interest at a fixed rate of 8% per annum and are secured against aircraft owned by the lessors, while the EMEA airline loans cost between 7.7% to 8.58% a year.

Last year AFJ exclusively revealed that Castlelake Aviation had signed a sale and leaseback agreement with Vietjet for three A321neos under a finance lease classified as a loan.

The current Castlelake Aviation portfolio has a weighted average age of 4.8 years and weighted average remaining lease term of 8.8 years.

Castlelake Aviation entered the year with 22 separate airline customers, including Delta Air Lines, Indigo Airlines, Condor, Scoot, Qatar Airways, and Air Asia.


Regional Snapshot