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Dublin-based aircraft operator Avia sees earnings jump to €316m

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Dublin-based Avia Solutions Group, the world’s largest aircraft leasing, crew, maintenance and insurance (ACMI) firm, said it generated earnings of €316m in the third quarter of the year, as revenue rose to €1.64bn.

The figures were up 31pc and 22pc respectively.

Avia, which moved its headquarters to Dublin from its home country of Lithuania earlier this year, has customers including Lufthansa, Turkish Airlines, Wizzair, Ryanair and SAS. Avia is the parent company of SmartLynx Airlines, Avion Express, BBN Airlines, Klasjet and Magma Aviation.

The company is ultimately controlled by businessman Gediminas Ziemelis, the group’s chairman.

Avia Solutions Group chief executive Jonas Janukenas said that the third-quarter performance was a reflection of the “substantial demand” for ACMI services across the world.

“The year 2023, especially the extremely active summer season, demonstrated the tremendous need for ACMI services in the aviation industry worldwide,” he said.

Europe accounted for 69pc of revenue in the third quarter, while Asia accounted for 19pc. Its revenue in Asia rose just over 9pc in the period. The group now has a fleet of 197 passenger and cargo aircraft and plans to expand in the Asia-Pacific region. It has set up new companies in Thailand and Indonesia to underpin its development and aims to have a total of five operators in Asia by the end of next year. It is also expanding in South America.

“Expanding in south-east Asia and South America is a key strategic direction for the group, allowing us to balance the reduced seasonal demand in Europe during the winter by shifting aircraft to these regions,” said Mr Janukenas. “During the past few years, we have become a major aviation player in this part of the world and plan further expansion.

“Additionally, significant investments are being made in MRO [maintenance, repair and overhaul] infrastructure for the group’s aviation companies providing ACMI services. The total investment in the initial development phase in the region amounts to €25m.”

Avia Solutions has begun the construction of a 20,000 sqm aircraft maintenance hangar in the Dominican Republic and a 17,000 sqm aircraft maintenance hangar in Bali. The group’s subsidiary, Avion Express, has established an ACMI airline in Brazil to serve clients in Colombia, Chile, Brazil, and the Dominican Republic.

This year, Avia freed up almost €1.5bn in capital that could potentially be made available to distribute to shareholders.

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