Avia Solutions Group financial results: revenue doubled

Avia Solutions Group, the largest global ACMI (aircraft, crew, maintenance, and insurance) provider, reported that their financial results for 2022 have doubled: revenue increased to €1,9 billion, EBITDA at €288 million, and adjusted profit totalling €85 million.

“Our group’s financial results for last year were predominantly determined by the fact that we were one of the first in the market to begin actively expanding our passenger aircraft fleet. We can see that this strategy paid off and allowed us to strengthen our leading positions in the market. Throughout the year, we added 78 aircraft to the group’s fleet,” says Jonas Janukenas, CEO of Avia Solutions Group.

At the end of 2022, the group’s aircraft fleet consisted of 173 aircraft, of which 136 were passenger, and 37 were cargo aircraft. In comparison, this is more than some of the region's leading aviation companies have in their total aircraft fleets.

According to Janukenas, the company's main business focus remains on ACMI services, which bring the highest proportion of income to the group.

In 2022, 96% of Avia Solutions Group’s revenue was generated by operations in Western Europe (81%), Asia (10%), and North America (5%). According to Janukenas, the USA is a particularly important region, where the company has 4 offices with revenue exceeding €60 million in 2022. The company also sees great operational potential in the Americas, which enables the company to better manage seasonality in the market. Comparatively, demand for capacity decreases throughout the winter in Europe and available aircraft can be moved to regions where they can be utilized more frequently.

An important decision that had an impact on the group's financial results for 2022 was the decision to withdraw from the Russian market, made on the second day of the war in Ukraine.

“Complete withdrawing from the Russian market cost us €14 million in direct losses, while another €55 million in losses were caused by significant downsizing of activities in China,” says Jonas Janukenas. After these one-time write-offs, the group's profit in 2022 amounted to €12 million.

“Even before the beginning of the war, both the Russian and Chinese markets were insignificant in terms of activity: revenue in Russia was no more than 3%, in China, 0.5%, so there were no plans for further activity. For several years now, our focus has remained on Western Europe, the USA, and North and South American markets, where we see the greatest potential for the group's development,” says Janukenas.

The group's plans include further expansion of its aircraft fleet while strengthening positions in global markets. In March of this year, Avia Solutions Group moved its headquarters to Dublin, Ireland and became an Irish-based company. Globally, more than 11 thousand aviation specialists work within the group.