Willis Lease Finance Corporation reported record revenue of US$246.3 million for the third quarter, up 34.3% year on year, driven partly by sales of aircraft and other equipment. The Coconut Creek, Florida-based lessor’s expenses rose faster, however, increasing 61.6% to US$234.8 million. Operating income fell 69.8% to US$11.5 million, while net income attributable to common shareholders declined 55.3% to US$10.2 million.
Lease-rent revenue rose 10.2% to US$84.4 million. Spare-parts and equipment sales reached US$98.1 million, compared with US$5.4 million a year earlier; the total included five aircraft, two engines and one airframe. Of that amount, US$89.1 million came from five aircraft acquired in the WNG acquisition and sold to the Willis Mitsui & Company Engine Support joint venture.
Maintenance-services revenue increased 208.5% to US$11.2 million, while management and advisory fees rose 140% to US$4.5 million. Investment income reached a record US$7.3 million, up 40.8%. Long-term maintenance revenue fell to US$2.6 million from US$29.5 million, following higher maintenance reserves and end-of-lease payments in the prior-year quarter. Adjusted EBITDA was US$100.9 million, down from US$135.0 million.
At quarter-end, Willis Lease Finance reported US$4.9 billion in assets under management. Its on-balance-sheet operating-lease portfolio included 341 engines and 31 aircraft, among other assets. Chief executive Austin Willis said the company was focused on launching Willis Aviation Capital and growing assets under management. He expects profits from the core leasing business to accelerate as the company pursues scale.