Air Partner reports strong H1 trading performance
Air Partner has reported strong trading performance for the first half (H1) of 2021, the aviation services group just published its unaudited results for the 6 months to 31 July. Air Partner now predicts performance for the full year to be materially above market expectations.
The full results for the last financial year showed a record performance, driven by strong Covid-related trading in group charter and freight. Air Partner expected this level of activity to decrease as the pandemic eased, but performance into 2021 has continued strongly.
Mark Briffa, CEO, Air Partner, said: “I am extremely proud of the progress we have made in the first half of this year, following on from record results last year. Our vision to build a portfolio of diverse aviation services that smooths earnings and builds out our customer offering is clearly progressing, with all four products – group charter, private jets, freight and safety & security – making a significant contribution to these results.
Briffa continued: “Looking ahead, strong current trading across all areas of our Charter division, and an improving outlook for Safety & Security, gives us confidence in our prospects for H2 and accordingly we have upgraded our financial performance expectations for the full year.”
Products and services previously depressed by Covid restrictions have made a significant contribution, while charter and freight have returned to more normalised levels.
In August 2021, the directors undertook the strategically important acquisition of Kenyon International Emergency Services Inc. Which follows the successful acquisition of Redline Worldwide Limited in late 2019. Air Partner has factored a minimal contribution from Kenyon in H2 2021. However, it is expected to be earnings enhancing in 2022 and should contribute meaningfully to Air Partner’s long-term financial performance.
The firm reported a gross profit of £18.6m, which reflects a strong recovery in its private jet segment and a robust performance in group charter and freight as those areas return to more normalised trading levels. Overall, 48.2% of gross profit came from outside of the UK; the US contributed most with 31.6%.
Also, JetCard cash deposits were up 12.5% to £19.8m due to high demand in private jets, this compares to £17.6m in H1 2020 and £18.5m in the same period in 2019. There was strong growth in JetCard sales, particularly in the US, which saw a 229% increase in new members year-on-year.
Looking to the immediate future, Air Partner have reported a strong start to H2, driven by government work in group charter, the freight of vaccine raw materials, and around 30 flights related to Afghanistan evacuations.
The Board expects underlying profit before tax in the second half of the year to be strongly ahead of H2 2021, which will result in performance being above current market expectations.