$310.8 million in Dubai Aerospace Enterprise’s profits in 9 months

Dubai Aerospace Enterprise Limited today announced its financial results for the nine months ending September 30, 2024, as the company’s profits grew by about 55% to $310.8 million, compared to $200.6 million during the corresponding period last year.

Profits for the period before taxes amounted to $326.6 million during the first nine months of 2024, compared to $207.5 million last year.

The company’s revenues reached $1.017 billion, compared to $989.2 million during the same comparison period.

According to the company’s announcement of its business results during the nine-month period, it signed agreements to purchase 23 aircraft worth approximately US$1.1 billion, 91% of which were narrow-body aircraft, and 86% of which were aircraft equipped with next-generation technology.

This October, it also signed an agreement to purchase 10 aircraft for a total amount of about half a billion US dollars.

The number of aircraft acquired reached 47, including 11 owned and 36 managed, while the number of aircraft sold reached 47, including 16 owned and 31 managed.

DAE CEO Firoz Tarapore said: “Profits before taxes increased by 57% and 13% before exceptional items thanks to revenue growth of 3%, resulting in pre-tax profit margins of 23% with pre-tax returns on equity of 20%.” 11%.

He added, “We continue to manage our balance sheet prudently, with liquidity and capital adequacy metrics remaining strong. We ended the quarter with liquidity of $4 billion and a liquidity coverage ratio of 335%. Financial leverage has also improved.”

He said, “In 2024, we announced the signing of agreements to purchase 33 aircraft from multiple parties for a total amount of approximately 1.6 billion US dollars. Collectively, the average age of the aircraft portfolios purchased is 4.4 years, with an average remaining lease term of 8 years, and they are leased to 17… Airlines in 13 countries.

The combined portfolio is 94% narrow-body aircraft by value, while aircraft equipped with next-generation technology make up 90% of the portfolio.
Tarapore explained that their orders cover the period until the second quarter of 2026, although continued delivery uncertainty from Boeing is delaying deliveries in the near term.

He reported that the company’s engineering department’s annual revenues increased by 35% to US$131 million, and profitability increased by 128% to US$27.6 million.

He said, “The process of developing additional capacity for modern aircraft hangars in our facility in Amman, Jordan, is on track, and our goal is to operate five additional aircraft hangar lines by the end of 2024.”