March 13 (Reuters) - BOC Aviation Ltd booked record annual net profit on Wednesday as Asia’s largest listed aircraft lessor earned more lease rental income.
Net profit rose to $620.4 million in the year ended Dec. 31, 2018 from $586.6 million a year earlier, while total revenue jumped over 23 percent to $1.73 billion.
“The aircraft operating leasing industry continues to produce sound earnings and retains a solid growth outlook,” Chief Executive Officer Robert Martin said.
BOC Aviation said supply in the company’s addressable market remained stable.
“In the single-aisle market, Boeing and Airbus are in the early part of the production cycle for new technology aircraft and are increasing production rates,” BOC Aviation said.
“It remains to be seen whether the supply chain will be able to support all of the planned increases, given corporate guidance from Boeing and Airbus, in particular, point to a combined increase in total commercial production in 2019 of approximately 10 percent.”
However, the company warned that the rippling effects of a long-drawn Sino-U.S. trade war and Brexit could dampen demand for aircraft, leading to a possible oversupply.
The lessor’s results come at a time when countries around the globe are grounding Boeing Co’s 737 MAX 8 aircraft due to safety concerns following a fatal crash in Ethiopia.
BOC Aviation owns 5 aircraft of the Boeing 737 MAX family and has 90 on order. (Reporting by Aditya Soni in Bengaluru; Editing by Subhranshu Sahu)