BOC Aviation Ltd. reported a 4.4% year-over-year increase in net profit after tax to $357 million for the first half of 2026, driven by higher lease income and aircraft sales gains. Revenue and other income rose 4.4% to $1.3 billion, with operating lease rental income up 6% to $988 million and financial lease revenue increasing 8% to $141 million.
The company recorded a 14% rise in gains on aircraft sales to $69 million, generated from the disposal of eight owned and five managed aircraft, with a gain-on-sale margin of 32% compared to a long-run average of 9%. Core lease rental contribution reached a record $388 million, up 13% from the prior-year period. Other income fell 57% to $21 million due to the absence of insurance proceeds, while other interest and fee income climbed 20% to $78 million, including a 28% increase in pre-delivery payment financing to $64 million.
Total costs and expenses rose 4% to $866 million, with depreciation up 4% to $405 million and finance expenses increasing 3% to $377 million. The blended average cost of funds remained stable at 4.4%, while the effective tax rate edged higher to 17.3% from 15.8%. BOC Aviation declared an interim dividend of $0.1799 per share, payable on October 14 to shareholders of record as of September 25, representing 35% of reported H1 net profit.
The company’s balance sheet showed total assets of $27.8 billion as of June 30, 2026, with total equity rising to $7.0 billion despite $212 million in dividend payments. Gross debt increased about 8% to $18.5 billion, while total available liquidity stood at $6.3 billion, including $319 million in cash and equivalents and $6 billion in undrawn committed credit facilities. Operating cash flow, net of interest, exceeded $800 million, and the cash collection rate remained robust at 99.2%. Credit ratings were affirmed at A- by Fitch and S&P.
BOC Aviation’s fleet totaled 811 aircraft and engines at the end of June, with 479 owned and 11 managed, alongside 321 on order. The weighted average fleet age was five years, with 86% classified as latest-technology aircraft. All owned aircraft were on lease, marking the third consecutive reporting period at 100% utilization. The weighted average remaining lease term was 7.7 years, and the net book value of the fleet stood at $19.4 billion, with an appraised current market value 17% higher at $22.7 billion.
Capital expenditure guidance for 2026 was maintained at $4.4 billion to $4.5 billion, with $2.3 billion spent in H1 and $1.8 billion committed for the second half. The order book includes 320 aircraft scheduled for delivery through 2032, representing $17.6 billion in future committed capital expenditure.
Shares of BOC Aviation fell 6.3% to close at $73.05 on the Hong Kong Stock Exchange, extending declines from the prior session’s close of $77.95. The stock is trading 8.6% above its 52-week low of $67.30 and 20.5% below its 52-week high of $91.95.
