Aircraft lessor BOC Aviation's CEO sees oversupply risks to industry

Asia’s second-biggest aircraft lessor, BOC Aviation, posted a 13% rise in half-year net profit but its CEO warned of a potential fall in industry yields from next year as lessors globally absorb more aircraft deliveries. “There is going to be some downward pressure,“ CE Robert Martin said. ”We are pretty much placed for next year already. For us, that will affect us in 2019.” The company, which is based in Singapore but majority owned by Bank of China, reported a net profit of $240m for the six months ended June 30, up from $212m a year ago. Its net lease yield remained steady at 8.5% as its fleet of owned and managed aircraft grew to 297 as of June 30 from 265 in the prior year. Asian lessors are investing billions of dollars to expand in a sector that offers long-term and dollar-based revenue, underscoring the region’s importance to an industry that makes up about 40% of the world’s airline fleet. The majority of BOC Aviation’s aircraft are deployed with Asian airlines, with Cathay Pacific Airways and Indonesia’s Lion Air Group among its main customers.<br/>