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Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft lessors, posted a modest rise in net profit in the first half of 2024 and warned that uncertainty over Boeing deliveries is delaying near-term deliveries.
The lessor, which is fully owned by the Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai, said the H1 net profit rose 5.5% year-on-year (YoY) to $148.8 million.
Revenue was $679.2 million for the period versus $670.1 million in the year-ago period.
Firoz Tarapore, Chief Executive Officer, said: "DAE's order book positions are placed until the second quarter of 2026, although continued delivery uncertainty from Boeing is delaying near-term deliveries."
He said the trading market remains a robust channel for buying and selling aircraft. "We are actively evaluating acquisitions and divestments of aircraft portfolios. We expect the second half of 2024 to be an active period."
DAE which has access to several wholesale funding sources, including the sukuk market, has committed to maintaining its ratio of unsecured debt/total debt to 70%, said as of June 30, 2024 the ratio was at 77.6% versus 73.3% at year-end 2023.
The lessor has a current total fleet of 489 aircraft compared with 493 as of December 31, 2023.
(Reporting by Brinda Darasha; editing by Seban Scaria)