Fly Leasing (NYSE:FLY), a global leader in aircraft leasing, today posted record results for Q2, which sent FLY stock climbing nearly 10%.
The Dublin-based aircraft leasing firm reported net income of $54.1 million, for the second quarter of 2019, compared to$24.3 million for the same period in 2018, which is a massive increase of over 120%. Reported revenue of $147 million USD beat analyst expectations of $140 million USD. Fly’s portfolio is primarily comprised of Boeing and Airbus aircraft, which it leases to commercial airlines.
These healthy results can mostly be attributed to the sale of seven aircraft and a contract to sell a further 14 in Q3, a deal that will lower the age of the company’s overall fleet while providing about $125 million in proceeds after debt repayments.“We sold seven aircraft in the quarter at a 10% premium to book value, and in the third quarter, we have contracted to sell 14 more aircraft, also at gains, again demonstrating the value embedded in FLY’s fleet,” said Fly’s Cheif Executive Officer Colm Barrington in this morning’s statement.
Strong Performance of FLY Stock
The strong performance of FLY stock comes during a welcome time to be an aircraft lessor. Ongoing issues with Boeing’s 737 MAX, and delays to Airbus’s A320neo program, have many airlines frantically scrambling for alternative options, and Fly provides just that.
Last year, Fly Leasing acquired a substantial portfolio of 84 aircraft as well as further orders from AirAsia in a $1.18 billion deal last year. The company is both paying down the debt it took on to make that deal and continuing to expand and return capital to shareholders. “As a result of our deleveraging strategy following last year’s major fleet acquisition, we have met our leverage target a year ahead of schedule,” said Barrington.
FLY stock has soared a massive 90% during 2019, and today’s results provide another boost for its share value, which has today broken the $20 mark for the first time since the company went public in 2007.
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