ALAFCO defers Airbus backlog as profit slumps
Kuwaiti aircraft lessor ALAFCO has reached an agreement with Airbus to defer its outstanding Airbus A320neo-family orders, comprising 43 additional A320neos and 10 A321neos.
Under the revised agreement, advance payments initially due over the next three years will now instead be due from 2024 only.
Earlier this month, ALAFCO halved its order for 40 Boeing 737 Max aircraft after ending a legal claim it had launched against Boeing.
ALAFCO’s net profit has slumped amid the Covid-19 crisis. For its fiscal third quarter, ended 30 June, net profit fell 89% year on year, to KWD1.4 million from KWD13.1 million previously.
Current assets declined 48% during the period, to KWD52.6 million, although total assets increased 6% to KWD1.45 billion. This stacks up against a 12% drop in current liabilities, to KWD203 million, and total liabilities of KWD1.13 billion, up 7% year on year.
ALAFCO’s owners include Kuwait Finance House, Gulf Investment Corporation and state-controlled Kuwait Airways.
Through 30 June the lessor had received rent deferral requests from 87% of its customers but had only agreed to deals with 35% of its client base.
ALAFCO has six A350s, five 777-300ERs, 15 737-800s, 28 A320neos and 28 A320-family aircraft, Fleet Tracker shows.
Of the lessor's six A350s none are in service. Four units with Hainan are being actively remarketed and the remaining two from Hong Kong Airlines were returned to ALAFCO following a legal dispute – which ALAFCO won – over missed rental payments.