BOC Aviation Ltd. reported record first-half earnings for 2026, posting a net profit after tax of $357 million, up 4% from the prior-year period, as total revenues and other income rose 4% to $1.297 billion.
Profit before tax increased 6% to $431 million, driven by a 13% rise in core lease rental contributions to $388 million, the highest interim figure in the company’s history. Operating lease rental income, which accounts for 76% of total revenues, climbed 6% to $988 million, while finance lease interest income rose 8% to $141 million.
Total assets expanded 6% to $27.8 billion, with net assets per share up 3% to $10.13. The company’s gross debt-to-equity ratio edged higher to 2.6 times from 2.5 times, while total liquidity declined 9% to $6.3 billion, comprising $319 million in cash and cash equivalents and $5.965 billion in undrawn committed credit facilities.
Capital expenditure deployed in the first half reached $2.267 billion for aircraft acquisitions, with $2.1 billion raised through bank loans and $793 million via bond issuance. BOC Aviation repaid $1.307 billion in maturing bonds and $398 million in loans, while net cash flow from operating activities totaled $1.221 billion.
The interim dividend was increased 22% to $0.1799 per share, lifting the payout ratio to 35% of net profit after tax. The company has declared dividends for 11 consecutive years, with the current payout representing a 195% increase from 2016 levels.
BOC Aviation’s fleet expanded to 811 aircraft and engines, with more than 86% consisting of latest-technology models, including 364 Airbus A320NEO family units and 210 Boeing 737-8/9 aircraft. The weighted average age of the owned fleet stood at 5.0 years, with fleet utilization at 100% for the third consecutive reporting period.
Credit ratings remained stable at A- from both Fitch and S&P. Shares fell 6.29% to $73.05 following the announcement, trading approximately 20.5% below the 52-week high of $91.95.
The company maintained its full-year 2026 capital expenditure guidance at $4.4 billion to $4.5 billion, with total committed CapEx and order book commitments totaling $17.6 billion to $18 billion.
