Avolon Chief Financial Officer, Ross O’Connor, has expressed concerns that tariffs proposed by US President Donald Trump could negatively affect the global aviation sector and its customers, which include major Irish lessors as well as Ryanair.
As Avolon reported strong financial results for 2024, with lease revenue up 4pc to $2.58bn and net income up 79pc to $608m, the lessor said it is keenly aware of geopolitical trade implications and their impact on the aviation supply chain, especially if tariffs affect GDP growth and cost structures within the industry.
Avolon recorded an impairment charge of $304m in the first quarter of 2022 after Russia invaded Ukraine in relation to jets it had leased to Russian carriers. Lessors, including Avolon, have been suing insurance firms in Dublin and London in relation to about 10 jets seized by Russia after sanctions were imposed on it.
Avolon holds the largest aircraft order book among global leasing companies, with 571 aircraft on order, including 131 Boeing 737 Max and 10 Boeing 787 aircraft, valued at approximately $16bn.
In an earnings call, Ross O’Connor shared “We have discontinued our proceedings in the Irish High Court. There are other proceedings continuing in other court systems, but we don’t expect any material incremental proceeds coming out of any trailing proceedings.”
“When we talk about tariffs, that obviously relates to the import and export of assets. There’s a small number of leasing companies that have an order book. But I think what’s also relevant is you have to consider that Boeing is one of the biggest exporters in the US. When we saw tariffs implemented last time, they were also suspended for aviation until June 2026. We’ve got to watch this space and see how that might play out. “There are other implications in terms of how it might impact the supply chain, for example, and what it might do to incremental costs within the aviation supply chain. We’re a global business, so to the extent that there are restrictions or limitations on trade that impact GDP, that could impact our customers and we’re very cognisant of that,”
