Avolon: 2014 Fourth Quarter and Full Year Results

43% Increase in FY Adjusted Net Income; 2014 FY Adjusted ROE of 12.5%
Dublin | March 3, 2015: Avolon (NYSE: AVOL), the international aircraft leasing company, today announced
results for the 2014 fourth quarter (“Q4”) and full year (“FY”).

2014 Full Year | Financial Highlights
! Adjusted Net Income growth of 43% to $179 million1; Net Income of $91 million
! Year on year revenue growth of 35% to $606 million
! Sold nine aircraft in 2014 recording a total gain of $64 million
! 282 basis point increase in Adjusted Return on Equity to 12.5%; Return on Equity of 6.4%
! Undrawn debt of $1.2 billion at year-end and reduction in average interest rate2 by 60 basis points to 3.8%

2014 Full Year | Portfolio Highlights
! Delivery of 41 owned and managed aircraft; sale of nine aircraft
! Sustaining industry leading fleet and lease profile: average age of owned fleet is 2.5 years while average
remaining lease term is 7.1 years

2015 | Outlook
! All deliveries for 2015 placed; sustained progress in aircraft trading activity year-to-date
!69% year-on-year increase in total commitments to $6.6 billion at end of 2014 providing substantial
‘locked-in’ growth for the business in years ahead
!Current expectation for 2015 is to deliver $1.6 billion of aircraft commitments and $700 million of aircraft trading volume – delivering an adjusted Return on Equity of 14.7% to 15.0%1 or a Return on Equity of 12.8% to 13.1%

Dómhnal Slattery, Avolon, CEO commented:
“Avolon delivered a strong performance against key financial and operating metrics in 2014. Revenue increased 35% year-on-year and our adjusted net income increased 43%. The strength of this performance is due to the strong growth in our fleet, our reducing cost of funding balanced origination model and consistent ability to deliver trading gains underpinned by what we believe is the industry’s leading risk-management system.”

“At the end of 2014, the embedded market value in our fleet, according to independent industry appraisers, was $568 million. This significant premium highlights the intrinsic value of the Avolon business and reflects our industry leading aircraft portfolio, our ability to acquire and trade assets at attractive prices and our robust underwriting criteria and asset risk management processes.”

“We are excited about the prospects for our business. We believe we have the right team and right business model, underpinned by a best-in-class risk management system, to continue to deliver superior growth with lower risk, which will in turn drive returns for our shareholders.”
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2014 Fourth Quarter Performance

Total revenue increased by $49 million, or 39%, to $173 million for the fourth quarter compared to $124 million for the same period in 2013. Adjusted Net Income increased by $21 million, or 74%, to $49 million for the quarter compared to $28 million for same period in 2013. Net Income for the fourth quarter was a loss of $13 million reflecting the one-off costs associated with the initial public offering and share-based compensation charges.

2014 Full Year Performance
Total revenue increased by $156 million, or 35%, to $606 million for 2014 full year compared to $450 million for 2013. Adjusted Net Income increased by $54 million, or 43%, to $179 million for the full year compared to $125 million for the prior year. Net Income for the 2014 full year was $91 million compared to $113 million in 2013.

Balance Sheet at the end of 2014
Aircraft Net Book Value at the end of 2014 was $5,607 million, an increase of $1,347 million or 32% on 2013. Total debt at the end of 2014 was $4,548 million. At the year-end, Avolon also had $1,176 million of undrawn debt facilities. The weighted average interest rate of outstanding debt at the end of December was 3.8% and the weighted average remaining debt maturity was 4.6 years.