Avation PLC on Wednesday said it has entered into a new lease agreement with an unnamed airline in the Pacific for its final remaining aircraft from inventory.

The aircraft leasing firm expects the lease of the ATR72-600 aircraft at a market rate for six years to be delivered in July.

The company added that it anticipates the global passenger market capacity to recover to 2019 levels, the last year before the Covid pandemic, by the end of 2023, citing aviation industry consultancy Cirium.

Avation Executive Chair Jeff Chatfield said: ‘Avation now has no remaining aircraft unleased in inventory as the company has entered into a lease agreement with a new airline customer, with the aircraft scheduled to be delivered in July 2023 on completion of technical checks. We expect Avation’s cost base to improve in the next financial year as the holding cost of inventory is now eliminated and reconfiguration and transition costs have all been reduced.’

Avation shares rose 6.4% to 124.50 pence each on Wednesday afternoon in London.

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