Avation Leasing Expands Fleet with Etihad A320 Deal

Avation, a leading commercial passenger aircraft leasing company, has announced a new agreement to acquire an Airbus A320 on lease to Etihad Airways. This deal not only adds a high credit quality airline to Avation’s esteemed customer list but also further strengthens its already robust narrow-body fleet.

In a statement released on February 25, 2025, Avation’s Executive Chairman, Jeff Chatfield, expressed his enthusiasm about the latest acquisition. “We are delighted to announce this Airbus A320 CEO aircraft acquisition, which adds a top-quality operator to Avation’s fleet, further improving revenue diversification and the overall credit quality of our portfolio,” Chatfield said. The new lease arrangement is set to be finalized in March 2025.

Avation’s strategic focus on narrowbody aircraft is well reflected in its current fleet composition—over half of its fleet consists of these in-demand models. The Airbus A320 is one of the most popular aircraft in commercial aviation, known for its fuel efficiency and versatility on short- to medium-haul routes. By adding this particular A320 to its portfolio, Avation is not only bolstering its fleet capabilities but also reinforcing its reputation as a reliable partner for high-quality airlines like Etihad Airways.

Another notable achievement highlighted by Avation in its recent update is the increase in the average remaining lease term across its fleet. As of December 31, 2024, the average lease term has risen to 4.2 years—the first significant increase in this metric since the COVID-19 pandemic ended. This longer lease term provides Avation with a more stable revenue outlook and enhances the overall attractiveness of its portfolio to investors.

Financial results for the six-month period ending December 31, 2024, have also been promising. Avation reported a revenue of $55.4 million and an EBITDA of $55.6 million, while its operating profit climbed to $125.6 million. These figures underscore the company’s operational efficiency and strong market position, particularly at a time when its fleet is reportedly 100% utilized.

Looking ahead, Avation is planning further fleet expansion. The company expects to receive a new ATR 72-600 in the second quarter of 2025. This aircraft has already been pre-sold to an airline in the Caribbean in a transaction that is forecast to generate a profit and release net cash proceeds of around $4.9 million. Additionally, two more ATR 72-600 aircraft are slated for delivery in the fourth quarter of 2025. The first of these, scheduled for October 2025, will be leased on a long-term basis to a Japanese airline, while the second is earmarked for a South Korean airline—both representing new customers for Avation.

By continuing to expand its fleet with modern, fuel-efficient aircraft, Avation is well-positioned to meet growing global demand while maintaining high standards of revenue diversification and portfolio stability. The acquisition of the Airbus A320 for Etihad Airways reinforces the company’s strategy to offer its customers a comprehensive and competitive fleet, ensuring they have access to the latest and most reliable aircraft.

This latest deal not only solidifies Avation’s commitment to its current operations but also sets the stage for further growth and expansion in the coming years. With a fully utilized fleet and exciting new orders on the horizon, Avation continues to lead the industry by delivering value to airlines and investors alike.

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