Engine lessor Willis Lease Finance Corporation (WLFC) recorded revenue of $311.9 million and pre-tax income of $9.8 million in 2022.
By year-end, aggregate lease rent and maintenance reserve revenues were $246 million and spare parts and equipment sales were $27 million, the company reported, with chief executive Austin C Willis saying the year was “the beginnings of a solid recovery”, post-Covid.
WLFC said its lease rent revenue increased by $27.7 million, or 20.6%, to $162.6 million in 2022, a jump that reflected “an increase in the number of engines acquired and placed on lease”.
The company’s maintenance reserve revenue was $83.4 million in 2022, an increase of 12.8%, with short-term maintenance revenue at $47.4 million in 2022, up from $17.7 million in 2021.
Spare parts and equipment sales increased to $27 million in 2022 from $17.4 million in 2021, driven by “an industry-wide increase in engine and aircraft utilisation, and the demand for parts associated with such increase compared to the prior year period”.
The reported gain on leased equipment was $3.1 million in 2022, reflecting the sale of 25 engines and down on the $6 million for 2021.
“Our programmes are becoming the bellwether for airlines looking for efficiency and to de-couple from counter-parties that are struggling
to produce consistently,” said Brian R Hole, WLFC’s president.
The gain on sale of financial assets was $3.1 million in 2022, reflecting the sale of four notes receivable, after a gain on sale of financial
assets of $10.9 million in 2021, which reflected the sale of two notes receivable.
As of December 31, 2022, the company said it managed 324 engines, aircraft and related equipment on behalf of other parties and said it had lease assets it owns directly or through joint ventures, inclusive of our notes receivable, maintenance rights, and investment in sales-type leases, with a book value of was $2,5bn.
It had $273.0 million in undrawn revolver capacity at the of 2022, when the diluted weighted average income per common share was $0.33, compared to $0.00 in 2021.
