BOC Aviation H1 profit rises 13%

[SINGAPORE] Asia's second-biggest aircraft lessor, BOC Aviation, posted on Tuesday a 13 per cent rise in half-year net profit as it expanded its fleet to take advantage of growing demand for travel.

The company, which is based in Singapore but majority owned by Bank of China, reported a net profit of US$240 million for the six months ended June 30, up from US$212 million a year ago.

BOC Aviation also said it would change its dividend policy to increase the payout to as much as 35 per cent of net profit from 30 per cent previously.

Asian lessors are investing billions of dollars to expand in a sector that offers long-term and US dollar-based revenue, underscoring the region's importance to an industry that makes up about 40 per cent of the world's airline fleet.

BOC Aviation's fleet of owned and managed aircraft grew to 297 as of June 30 from 265 in the prior year.

The majority are deployed with Asian airlines, with Cathay Pacific Airways and Indonesia's Lion Air Group among its main customers.

REUTERS