BOC Aviation reported a 4% year-over-year increase in net profit after tax to $357 million for the first half of 2026, supported by a 13% rise in core lease rental income to $388 million. Total revenues and other income reached $1.30 billion, while total assets expanded 6% to $27.8 billion, the company said in a presentation dated August 20, 2026.
The Singapore-based operating lessor, 70% owned by Bank of China, declared an interim dividend of $0.1799 per share, a 22% increase from the prior year and the second-highest on record, representing a 35% payout ratio of net profit. Core lease rental contributions hit a record $388 million, up 13% year-over-year and 8% annually over the past five years, while the operating lease rate factor rose 40 basis points to 10.4% on an annualized basis.
Aircraft portfolio metrics underscored the company’s positioning in a challenging sector. Total committed operating lease revenue climbed to $18.2 billion, with a net operating lease yield improving 40 basis points to 7.6%. The weighted average remaining lease term stood at 7.7 years, exceeding peers such as AerCap and Avolon, while fleet utilization remained at 100% for a third consecutive reporting period. The owned portfolio of 811 aircraft, with a weighted average age of 5.0 years, includes 86% latest-technology, fuel-efficient models, with a total orderbook of 320 aircraft valued at $17.6 billion.
Financial discipline was evident in the cost structure, as the company’s cost of debt declined 10 basis points to 4.4%, and gross debt-to-equity edged up to 2.6 times from 2.5 times. Liquidity fell 9% to $6.3 billion, though cash flow from operating activities totaled $1.22 billion, with net operating cash flow after interest at $844 million. Capital expenditures reached $2.3 billion in the first half, with full-year 2026 guidance at $4.4 billion to $4.5 billion.
Despite headwinds in the airline industry, where jet fuel costs accounted for 31% of operating expenses and global passenger traffic growth slowed to less than 1% in the first half, BOC Aviation maintained strong portfolio metrics. The International Air Transport Association reduced its 2026 industry profit forecast by 44% to $23 billion, citing elevated fuel prices and weaker traffic growth. The lessor’s aircraft value premium stood at 17% as of June 2026, up from 15% a year earlier, translating to a $3.3 billion premium over net book value.
Credit ratings remained stable at A- from Fitch and S&P, with the company’s debt mix shifting to 59% loans and 41% bonds. Total equity grew 3% to $7.0 billion, while net assets per share increased to $10.13. Shares of BOC Aviation fell 6.29% to close at $73.05 in Hong Kong trading on Thursday.
