Dubai Aerospace (DAE), a Dubai, United Arab Emirates-based aircraft lessor announced a marginal drop in profit, despite the fact that a multitude of its customers requested payment deferrals.
Overall, Dubai Aerospace finished H1 2020 with a profit of $121.7 million, compared to last year’s result of $197.1 million. Its revenues dipped from $735.2 million in H1 2019 to $672.6 million in the first six months of 2020. Despite the drop in yields, the lessor managed to increase its liquidity reserves from $2.4 billion at the end of 2019 to $2.8 billion as of June 30, 2020.
According to the chief executive officer (CEO) of DAE Firoz Tarapore, the lower profit in H1 2020 was attributed to the fact that the lessor had 23 fewer aircraft under its belt.
“To date, we have provided meaningful rent deferral solutions that created value for both our clients and DAE. As of July 31, 2020, we have granted rent deferral requests from 34 airlines totaling aggregate rent of approximately 16% of annual reported revenue,” added Tarapore.
A further 24 airlines have contacted the company regarding rent deferrals, added the chief executive, accounting for a further 13% of Dubai Aerospace’s revenue.
The Dubai-based aircraft lessor owns 124 Airbus and 102 Boeing aircraft, and 53 ATR 72-600 turboprops. Including 71 managed aircraft, the company’s portfolio comprises of 351 aircraft.