Avolon reported a 43% rise in net income to 214 million dollars (190 million euros) for the quarter ended 30 September, up from 149 million dollars a year earlier, as reported by the Irish Independent. The Dublin-based lessor also announced orders for 250 aircraft after quarter-end, with commitments for 749 aircraft at the end of September.

Avolon is headquartered in Dublin, was founded in 2010, and is owned 70% by Bohai Leasing and 30% by ORIX Corporation. According to its third-quarter update, it works with 138 airlines in 62 countries.

Leasing revenue rose 5% to 722 million dollars (641 million euros) from 691 million dollars a year earlier, as stated in the results. Net income over the 12 months to September reached 767 million dollars (681 million euros), up 36%, while operating cash flow in the quarter was 512 million dollars (455 million euros), down 5%, and totalled 2.3 billion dollars (2.04 billion euros) over 12 months.

The order pipeline is the driver. Avolon announced orders for 140 Boeing 737 MAX 10 aircraft, 75 Airbus A320neo family aircraft and 35 Airbus A330neo aircraft, with options on a further 100 Airbus aircraft.

During the quarter Avolon purchased 10 aircraft and sold 29, with a further 112 agreed for sale. Those include 22 aircraft that will form a new 1.4 billion dollar (1.24 billion euro) joint venture called Constellation Aviation, announced after the quarter ended and set up with investment firm I Squared Capital and a subsidiary of the Abu Dhabi Investment Authority.

Avolon will retain a minority stake in Constellation Aviation and manage and service its aircraft, and the transaction remains subject to certain competition approvals.

Total assets stood at 34.2 billion dollars (30.4 billion euros) at the end of September, down 1% from 34.4 billion dollars at the end of last year. Avolon had 14 billion dollars (12.4 billion euros) of available funding, including 515 million dollars (457 million euros) in cash and 7 billion dollars (6.2 billion euros) in undrawn debt facilities.

“Our third quarter results reflect the sustained earnings capability and continued momentum in our business. Our aircraft orders secure access to a scarce market-leading pipeline of new-technology aircraft, providing Avolon with an important strategic advantage,” said Andy Cronin, chief executive of Avolon.

For the sector, the results show a leading Dublin lessor pairing higher earnings with portfolio sales and a large order pipeline.