On 17 May 2021, Avia Solutions Group reported its consolidated financial results for the financial year ending 31 December 2020.
As the global aviation industry fell into the grips of COVID-19 – with volumes down by approximately 60% for the industry in 2020 – ASG’s results remained strong, with turnover decreasing only by 35% versus the previous financial year. ASG Fitch agency’s credit rating remained unchanged since its first issuance at the end of 2019. ASG’s Fitch agency’s credit rating remained unchanged since its first issuance at the end of 2019.
“Our broad portfolio of services, timely diversification of the Group's operations into the freight segment, and strict financial discipline have allowed us to remain strong even during the COVID-19 pandemic,” said Jonas Janukėnas, CEO of Avia Solutions Group. “While the pandemic has undeniably had a negative impact on the entire aviation industry, our group companies have found ways to increase market shares by responding flexibly to a changing market and introducing new services. At the same time, ASG has managed to keep a stable net debt position and retain its strong credit rating. ASG’s main areas of development remain oriented towards the markets of Western Europe, North America, and Southeast Asia. ”
Through 2020 and the beginning of 2021 ASG made a number of important acquisitions in the Western European markets. Completed acquisitions include the Aviator Group, a leading provider of ground handling services in the Nordics, Bluebird Nordic, an Iceland-based narrow-body cargo aircraft operator, RAS Completions, a London-based corporate aircraft interior and exterior specialist, and Arcus Air Logistics, an ad-hoc air cargo charter and on-board courier service provider based in Germany.
In 2020 ASG also made an important entry into North America through the acquisition of Wright international, an independent provider of line maintenance services active in Canada’s largest airports.
ASG’s acquisitions, in aggregate, brought onboard more than 2,000 aviation professionals with a pre-covid turnover exceeding €200 million. More than 75% of the Group’s income was derived from markets in Western Europe, with Southeast Asia contributing just over 10%, while revenues from Russia contracted to 4%.
The Group posted a turnover of €709 million and an EBITDA of €109 million. Net loss generated during the period amounted to €52 million. The negative result was adversely impacted by one-off charges amounting to €54 million* related to discontinued operations and COVID-19-related impairment expenses. The result adjusted for these one-off charges amounted to a net profit of €2 million.
A diversified product portfolio, strong market position, and focus on the B2B customer segment were the main drivers behind the stability of the Group’s results. In addition, the strong positioning of the Group’s companies operating in the MRO and ground handling segments, along with positive results by the Group’s freight and logistics specialists Chapman Freeborn and Bluebird Nordic, have contributed significantly towards the Group’s stable credit rating and outlook.
Improvements across various segments of the aviation sector are expected in the second half of 2021 with the pace of the recovery dependent on factors such as mass vaccination, the roll-out of vaccine passports, the reopening of borders, and the removal of restrictions on air travel globally.
*One-off charges – €17 million; Discontinued operations – €9 million; Impairment expenses – €28 million