Plane lessor DAE posts $1.4 billion revenue for 2024

Alsharq Tribune- Gulf News

Dubai-based aircraft leasing company Dubai Aerospace Enterprise (DAE) reported strong financial results for 2024, with total revenue reaching $1.43 billion, an 8.7 per cent increase from $1.32 billion in 2023. The company's profitability also saw a significant boost, with net profit climbing 36.2 per cent to $478 million, up from $350.6 million the previous year, the company said in a statement issued Wednesday.

Moreover, DAE’s operating profit before exceptional items rose to $711 million, up 19.4 per cent year-on-year, driven by higher revenues and gains from aircraft sales. However, increased maintenance costs and a lower reversal of loss allowances partially offset this. 

Firoz Tarapore, CEO of DAE, stated, “We advanced the franchise forward in 2024 by acquiring 83 owned and managed aircraft, growing revenue by 9 per cent and increasing pre-tax profitability by 45 per cent.

He added, “This translates into a stellar pre-tax profit margin and return on equity. Our balance sheet today is stronger than ever before. Our capital adequacy, liquidity, and funding metrics are well within our committed bands, which was reflected in ratings actions taken by both Moody’s and Fitch during the year.”

Tarapore also said demand for aircraft from airline customers remains strong. “At year-end 2024, all our aircraft were either on long-term leases or under LOI with airline customers, and our order book positions until mid-2026 are committed on long-term leases to airline customers,” he explained.

Fleet expansion

DAE continued to expand its fleet in 2024, increasing its total number of aircraft to 506, up from 493 in 2023. The fleet now includes 329 owned aircraft, 110 managed aircraft, and 67 committed aircraft.

During the year, the company purchased 30 owned aircraft—a sharp increase from 10 in 2023—and added 53 managed aircraft. At the same time, DAE sold 19 owned and 49 managed aircraft as part of its ongoing portfolio optimisation

Additionally, 79.4 per cent of DAE’s total debt is now unsecured, up from 73.3 per cent in 2023. This shift reduces the company’s reliance on collateral-backed loans, improving financial flexibility.

DAE Engineering also delivered “record performance”, with revenue increasing year-on-year by 33 per cent to $186.4 million and profitability increasing by 94 per cent to $43.2 million. “The addition of a state-of-the-art hangar with five new lines at our facility in Amman, Jordan, will augment our capacity by approximately 30 per cent,” Tarapore stated.