Avia Solutions Group, a Dublin-based company and global leader in Aircraft, Crew, Maintenance, and Insurance (ACMI) services, recently released its financial results for the third quarter of 2024, presenting itself as one of the most notable players in the international aviation industry. The Group, which currently operates 221 aircraft - including 183 passenger and 38 cargo aircraft - recorded a significant increase in its revenue and net profit compared to the previous year, underlining the Group's successful focus on expansion and market diversification.
The Avia Solutions Group increased its revenues by a remarkable 2024% to a total of EUR 25 billion in the third quarter of 2,06. This increase is mainly due to increased demand for air transport services as well as strategic investments in new markets and partnerships. The group's net profit also grew from EUR 70,8 million in the previous year to EUR 83,3 million, an increase of 17,6%. EBITDA, a key indicator of operational performance, amounted to EUR 406 million - an increase of 18% compared to the same period last year.
Regional sales distribution and market strategy
Europe remains the most important market for Avia Solutions Group with a share of 55,1%, followed by Asia with 27,9%. These regions contribute significantly to the Group's revenue, while North and South America and other areas such as Africa and Australia together account for only a small share of around 15,7%. CEO Jonas Janukenas highlights that expansion into Southeast Asia and other countercyclical markets is a strategic priority. These markets offer significant growth opportunities and enable the Group to smooth out seasonal fluctuations and optimize fleet utilization year-round. Investments in these regions are intended to help maximize operational capability while meeting customer requirements worldwide.
Strategic expansion and acquisitions
A prominent example of Avia Solutions Group's growth strategy is the acquisition of Australia's Skytrans in the first half of 2024. This acquisition increased the number of Air Operator Certificates (AOCs) held by the Group to a total of 11. In the third quarter of 2024, the Group also established its first AOC in Thailand under the name Thai SmartLynx. The expansion in Asia is part of a long-term strategy to establish additional AOCs in Malaysia, the Philippines and Brazil by the end of 2025.
freight market and challenges
Despite the growth trajectory, the freight market has proven challenging in 2024, mainly due to overcapacity and changing demand. Jonas Janukenas commented that the group is, however, optimistic about the future and expects the freight market to revive in 2025. Adapting to market conditions and leveraging technology to improve operations will be crucial to prevail in a competitive market.
Financial support and investor confidence
To support its business strategy, Avia Solutions Group has issued a five-year unsecured bond of US$2024 million with a coupon of 300% in the first half of 9,75. This financing measure not only strengthens the Group's liquidity but also demonstrates investors' confidence in the Company's long-term strategy. Another indication of confidence in the Group is the increase in equity of €300 million in 2024, which came about through the conversion of preferred shares into common shares by Certares Management LLC, a US-based private equity firm.
Future Outlook: Investments and Expansions
The recent order for 80 Boeing 737 MAX aircraft, divided into 40 firm orders and 40 purchase options, underlines Avia Solutions Group's growth ambitions. Deliveries of these aircraft are scheduled for 2030, enabling the Group to modernize its fleet in the long term and meet the growing demands of the aviation industry.
Comprehensive services and global network
The Avia Solutions Group offers a wide range of services, from aircraft maintenance and repair (MRO) to pilot and crew training and ground handling. With more than 250 subsidiaries in 68 countries and a team of over 14.000 aviation professionals, the Group is able to offer tailor-made solutions to a wide range of customers worldwide. This versatility and the Group's robust market position help it to establish itself as an indispensable player in the global aviation industry.
and 