CALC’s 2020 operating profit steady as fundamentals ‘unscathed’

China Aircraft Leasing reported steady operating profit and revenues in 2020, as the key fundamentals supporting its operations for the long term “remain unscathed”, despite a massive hit to its bottom line. The lessor’s operating profit declined by 2% year-on-year to HK$949m ($122m), while revenues dipped by just 1.1% to HK$3.49b. However, net profit fell 62.7% to HK$334m in an “extremely challenging” 2020, in line with its profit warning for a 60-65% decline, issued at the start of March. In 2020, CALC delivered 10 aircraft – one fewer than in 2019 – through orderbook placement and purchase and leasebacks. It also disposed of 18 aircraft which resulted in a net gain of HK$514m, versus a HK$585m net gain from the disposal of 15 aircraft in 2019. As of 31 December 2020, CALC had 128 aircraft in its fleet, comprising of 103 owned and 25 managed aircraft, down from 134 at the end of 2019. Its A320ceo family fleet saw the greatest reduction, shrinking from 83 aircraft in 2019 to 74.<br/>