DAE posts 9% fall in first-half revenue, says COVID-19 variants are a threat to recovery
DAE’s adjusted profit for the period nearly halved to $65.1 million
Dubai: Aircraft leasing firm Dubai Aerospace Enterprise (DAE) reported a 9 per cent drop in revenue for the first half of 2021.
Total revenue in the six months ended June 30 stood at $613.4 million, compared to $675.9 million, a year earlier. Operating profit was $240.5 million compared to $308 million a year-ago.
“Our financial results for the first-half of 2021 reflect strong origination of new technology, fuel-efficient narrow body aircraft and a robust environment for sales of aircraft assets,” said Firoz Tarapore, CEO of DAE.
The company’s adjusted profit for the period, excluding one-time charges, stood at $65.1 million compared to $121.7 million in 2020.
“Recovery in passenger air traffic demand is progressing well but not evenly in all jurisdictions and for all aircraft types,” said Tarapore. “The uneven nature of vaccine deployment geographically and the emergence of virus variants remains a barrier to a predictable return to full normalcy.”
DAE, which utilized 99.1 per cent of its fleet in the first six months of 2021, said it had committed to purchase 26 aircraft, while selling 27 airplanes.
The company’s operating cash flow - a measure of the amount of cash generated by normal business operations – rose more than 15 per cent year-over-year to $498.5 million.
“We remain optimistic and vigilant - our balance sheet stays strong with high levels of capital adequacy and exceptional levels of available liquidity,” said Tarapore.