Dubai Aerospace swings to profit of $10.4m

Majority state-owned firm Dubai Aerospace, whose leasing unit cancelled a major Airbus order in March, made a profit of $10.4 million in 2010 amid higher revenues, an earnings statement showed on Sunday.

The Dubai-based aircraft leasing firm swung to profit after it reported a loss of $21.1m in 2009, one of its shareholders, DIFC Investments, said in a statement to the bourse.

Revenues rose slightly in 2010 to $1.6 billion from $1.57bn in the prior-year period.

DIFC Investments, which posted a narrower 2010 net loss of $272m on Sunday, owns a 23.3 per cent stake in Dubai Aerospace. After ordering more than 200 aircraft during an industry boom in 2007, Dubai Aerospace's leasing unit was forced to cancel orders in recent months in the wake of the financial crisis.

Leasing unit DAE Capital cancelled orders for 18 A320 single-aisle jets and 12 A350-900 wide-body Airbus aircraft, amounting to $4.7bn at current list prices.

It has also cancelled orders for 32 Boeing 737 aircraft, analysts said.