29 Aug 2025
#5 August 2025: China Aviation Industry Newsletter
BOC Aviation Reports Robust Half-Year Growth
BOC Aviation has reported a strong financial performance for the six months ending 30 June 2025. The company achieved a net profit after tax (NPAT) of US$342 million, representing a 20% rise in core profits and marking a record—excluding non-recurring items reported in 1H 2024.
Total revenue and other income rose to US$1.2 billion, up 6% year-on-year, with improvements across all business lines. As of June 2025, total assets stood at US$25.6 billion, while total equity rose 2% to US$6.5 billion.
Steven Townend, CEO and Managing Director of BOC Aviation, stated:
“We recorded our highest-ever core first-half earnings, driven by rising demand in all our key businesses. Operating cash flow net of interest was a record US$1.0 billion, up 10% from last year. Our 351-aircraft orderbook is among the largest of any lessor and will support our future growth. With US$6.1 billion in available liquidity, we’re on track to achieve our target asset base of US$40 billion by 2030.”
CALC Successfully Prices US$160 Million Senior Unsecured Notes
China Aircraft Leasing Group Holdings (CALC) has priced US$160 million in senior unsecured notes due in 2028, offering a fixed coupon of 6%. The issuance was oversubscribed 4.35x, signalling strong investor confidence and marking CALC’s return to the USD bond market since 2021.
Mr. Conrad Li, Executive Director, CFO, and Chief Strategy Officer of CALC, commented:
“Re-entering the USD bond market is strategically important for CALC. It allows us to tap into robust investor demand, enhances our financial flexibility, and further reinforces our international credit standing. We appreciate the wide support from global investors and the banking community, which empowers us to deliver long-term value.”
DHL Express and Cathay Group Sign SAF Deal to Drive Adoption in Asia
DHL Express and the Cathay Group have entered into a new sustainable aviation fuel (SAF) partnership aimed at accelerating SAF production and usage in Asia.
Under this agreement, Cathay will supply DHL Express with 2,400 tonnes of SAF for international flights operated by Air Hong Kong (a Cathay Group subsidiary) from Seoul Incheon, Tokyo Narita, and Singapore Changi airports.
The partnership is expected to reduce lifecycle greenhouse gas emissions by approximately 7,190 tonnes, equivalent to over 100 Airbus A330 freighter flights between Hong Kong and Singapore.
Tom Owen, Director Cargo at Cathay, said:
“This partnership marks the first SAF uplift on Air Hong Kong flights and is a key milestone as we expand SAF usage across our global network. SAF is a core pillar of our decarbonisation strategy, and partnerships like this are critical for making it accessible and scalable, especially in Asia.”
Acumen’s Take
On BOC Aviation’s Half-Year Performance
BOC Aviation’s 20% core profit growth and record cash flows reflect the strength of its globally diversified leasing portfolio and robust aircraft demand. With a 351-aircraft orderbook and US$6.1 billion in liquidity, the lessor is well-positioned to capitalise on delivery slots scarcity and airline fleet renewal trends. This solidifies BOC’s position as a leading lessor in Asia-Pacific with long-term financial resilience.
On CALC’s Oversubscribed Bond Issuance
CALC’s return to the dollar bond market with a 4.35x oversubscription signals restored investor confidence in Chinese lessors amid global market volatility. The 6% coupon offers an attractive yield, while the successful placement enhances CALC’s financial agility. This also suggests a more favourable credit environment for asset-backed aviation plays, especially those with a well-diversified lessee base.
On Cathay–DHL SAF Partnership
This SAF agreement is a landmark step toward decarbonising Asia’s air cargo sector. Cathay’s supply to DHL Express via Air Hong Kong introduces SAF into regional freighter operations, a segment often overlooked in sustainability initiatives. For investors and stakeholders, the deal signals growing demand for green logistics solutions and could spur further SAF-related investments and policy support across Asia.
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