SMBC profit hits €130m ahead of Goshawk deal

Aircraft lessor SMBC Aviation Capital’s profit grew 43 per cent in the six months ended September 30th to $134 million (€130.2m), the company said on Tuesday.

Dublin-based SMBC is close to completing its takeover of rival Goshawk in a deal valued at $6.7 billion (€6.51bn) that will make it the world’s second largest player in aircraft leasing.

Commenting on the results, which cover the first half of its financial year, Aisling Kenny, chief financial officer, noted that the reopening of air travel in much of Asia-Pacific boosted recovery and demand.

“Airlines are increasingly confident that the post-Covid recovery is being sustained and we expect to be able to capitalise on a similarly strong demand for aircraft trading,” she said.

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Ms Kenny added that closing the Goshawk deal would further strengthen SMBC’s competitive position.

Its owners, Japan’s Sumitomo Mitsui Financial Group and Sumitomo Corporation, will support the deal by providing $1.36 billion (€1.31bn) at the time of the acquisition.

SMBC buys aircraft using its own cash combined with debt and leases them to airlines around the world.

At the end of September, the company had 700 aircraft that it either owned, managed for other investors or had ordered and was committed to delivering to airline customers.

The Irish company deals mostly in latest models of Boeing and Airbus jets favoured by airlines for short-haul travel.