Dubai plane lessor DAE's 2023 revenue rises 16% to $1.3 billion; profit at $351 million
Company’s engineering division posted sizeable increases in output and revenue as well
Dubai: Dubai-based aircraft lessor DAE saw its revenue rise by 16 per cent to $1.3 billion in 2023, with profits hitting $351 million, amid robust demand from airlines and aircraft to meet the boom in air travel. The company also announced Wednesday it acquired 20 (10 owned and ten managed) aircraft and sold 30 (22 owned, eight managed) during the financial year.
The company signed 150 lease agreements, extensions, and amendments, of which 114 are owned, and 36 are managed.
Firoz Tarapore, Chief Executive Officer of DAE, said, “Our full year 2023 financial results demonstrate the continued strength of our expanding franchise as we acquired 20 aircraft and a 64 aircraft order book with near-term delivery positions.”
He added, “Our engineering division posted record results with sizeable increases in output and revenue.”
During the year, DAE was appointed the Middle East’s first Boeing 737-800BCF conversion line in partnership with Boeing. It announced the expansion of Joramco’s facilities in Amman, Jordan, which is expected to reach 22 maintenance lines in the second half of 2024.
The 2022 results are adjusted to exclude a net exceptional write-off of $576.5 million related to the loss of control of 19 aircraft previously leased to airlines based in Russia. Meanwhile, 2023 results are adjusted to exclude cash settlement proceeds of $118.3 million, the company said.
Expansion plans
Commenting on expansion plans, Tarapore said, “We are continuing to invest in the facility, having broken ground during the year on additional hangar capacity and announcing a partnership with Boeing to become the first facility in the Middle East to be authorized to complete Boeing 737-800BCF conversions.”
Last year, DAE received a cash insurance settlement totalling approximately $118 million for its aircraft previously on lease to Aeroflot Russian Airlines. The amount represented a settlement of DAE’s insurance claims under Aeroflot’s insurance and reinsurance policies relating to seven aircraft and associated engines.
The 2022 results are adjusted to exclude a net exceptional write-off of $576.5 million related to the loss of control of 19 aircraft previously leased to airlines based in Russia. The company explained that the 2023 results are adjusted to exclude cash settlement proceeds of $118.3 million.
DAE signed a MoU with Australian pilot simulator training firm Ansett Aviation Training earlier this week. The cooperation with AAT will provide DAE’s airline customers with pilot training infrastructure for ATR 72-600 and Airbus A320 aircraft types at AAT’s new training centre in Dubai (located in Dubai South).
“This collaboration provides an important strategic opportunity to support DAE clients across the Middle East, Africa, India, and beyond while fostering stronger Australia-UAE ties and promoting Dubai as a key player in global aviation services,” said Mark Delany, CEO of Ansett Aviation Training.