Private Jet Pick-Up Indicated by Air Partner, Hangar8 EarningsRobert Wall
Air Partner Plc, a U.K. broker of business-jet charters, said increased demand for private planes means full-year earnings will beat forecasts. Hangar8 Plc, which has a fleet of about 50 aircraft for hire, also reported gains.
Air Partner’s pretax profit for the year ending July 31 will be higher than 2012’s 3.2 million pounds ($4.8 million), the provider of planes spanning Cessna light jets to Boeing Co. 777’s said today. Analysts predict a 3.75 million-pound profit, based on the median of two estimates in a Bloomberg survey.
The private-jet market has been sluggish since 2008, when the economic slump hurt demand from businesses and individuals. Improving growth prospects in the U.S. and an easing of the European debt crisis have raised prospects for a rebound.
“Business has further improved” since a June 4 update that detailed gains in both private-aircraft and jetliner charters, with trading “stronger than expected” over the last eight weeks, Crawley, England-based Air Partner said in a statement.
The stock rose as much as 7.4 percent and was trading 5.7 higher at 364 pence as of 10 a.m. in London, taking gains this year to 19 percent and valuing the company at 37 million pounds.
Air Partner said business has also been buoyed by new deals to serve the oil and gas market and from tour operators.
Oxford, England-based Hangar8, which offers planes from Embraer SA Phenom 100 light jets to the Brazilian manufacturer’s Lineage 1000 VIP model featuring a dining room and double bedroom, reported a “material uplift” in pretax profit for the year ended June 30 which it said was in line with forecasts.
Growth was aided by the November purchase of International Jet Club Ltd., which added two long-range Bombardier Inc. Global Express aircraft, and there is cash for further expansion, Hangar8 said.