Aircraft leasing firm Genesis hails profit growth of more than a third

GENESIS LEASE, the Shannon-based aircraft leasing firm, said net profits rose by more than a third in 2007.

The company, which is listed on New York’s Nasdaq stock market, said profits rose to $39.2 million (€26.6m) from $28.8m in 2006.

The increase in profits came as revenues from renting out its fleet of aircraft rose to $181.3m from $153.2m.

The company added 12 aircraft to bring its total fleet to 53.

Genesis said profits would have been higher were it not for a $3.3m pre-tax charge “relating to a proposed transaction that is unlikely to proceed”.

It provided no further details of the transaction.

Genesis chief executive John McMahon said despite fears over the health of the aviation industry in the past few months the company continued to grow.

“As reflected in our most recent quarterly results, the aircraft leasing industry remains strong as we continue to experience robust global demand for commercial aircraft.

“During the fourth quarter we took delivery of one Boeing 737-700 aircraft and also recently secured two long-term lease extensions for aircraft that had current leases expiring in late 2008 and late 2009, at rentals in aggregate that are higher than current rentals for those aircraft,” Mr McMahon said.

In the fourth quarter of 2007, Genesis Lease saw revenues rise to $54.9m from $41.6m, although net income fell to $6.4m from $7m as a result of the $3.3m charge.

The company said the Boeing 737 delivered in December had been leased on to Aloha Airlines and this was one of seven leases agreed during 2007 with airlines.

Genesis said all its leases that expire this year have been rented out. Just one jet lease that expires in 2009 has not been contracted out.

Mr McMahon added: “Despite the recent turmoil in the financial markets, we continue to actively consider a range of acquisition opportunities and believe favourable financing options are available to us. As always, we will adhere to our strict acquisition standards with a focus on creating long-term value for our shareholders.”

Shares in Genesis Lease were down 1.5% at $20 in midday trading in New York, valuing the company at $721m.