BOC Aviation (2588 HK) reported resilient financial results for 2021, with revenue and net profit up 6.3% and 10.1% year-on-year, respectively. Despite the bumpy route to recovery, the company's business resilience is evident. The recovery of air traffic in most areas, the gradual recovery of aircraft supply from manufacturers, and improved investor sentiment on the global aviation industry in debt capital markets are expected to help improve profitability in 2022-2023. However, the Russia-Ukraine conflict adds to near-term uncertainty. The company's business exposure to Russia is limited, with 18 aircraft leased to four Russian airlines, with a net book value of USD935mn. The company's earnings estimates are under review.
