WOLFSBURG, Germany: Mammoth German carmaker Volkswagen reported Thursday growing profits and revenues in 2018, beating analysts’ forecasts despite enormous charges linked to its “dieselgate” emissions cheating scandal and headwinds from tough new pollution tests.
The Wolfsburg-based group said it boosted its bottomline 6.0 percent year-on-year to $13.7 billion (€12.15 billion), higher than expectations from analysts surveyed by Factset.
Selling 10.8 million vehicles around the world from its 12 brands brought in €235.8 billion, with revenues posting slower growth than profits at 2.7 percent.
And operating, or underlying profit added just 1.0 percent, to €13.9 billion.
“We performed very well in spite of strong headwinds,” chief executive Herbert Diess said in a statement.
One major burden was the WLTP emissions tests, introduced since VW’s 2015 admission that it manipulated millions of cars worldwide to appear less polluting.
The new process’ introduction in September cost VW almost one billion euros by slowing production, a spokesman said, with the effect visible in a fourth-quarter operating result 4.2 percent lower year-on-year, at €3 billion.
Meanwhile the group notched up €3.2 billion in special items to cover costs relating to “dieselgate,” the same as the previous year.
A sizeable chunk of the costs came in Germany as VW paid a group-wide fine of €1 billion, while high-end subsidiary Audi had to forfeit 800 million euros.
Since 2015, legal costs, fines, buybacks, and refits to affected cars have cost VW €29 billion, the group said.
Looking ahead, VW said it had expanded its plans for a vast array of electric models over the coming decade to 70 rather than 50, aiming to sell 22 million battery-powered cars by 2028.
It hopes the offensive will help it meet strict new carbon dioxide emissions requirements in the European Union.
“The share of electric vehicles in the group fleet is to rise to at least 40 percent by 2030” with Korea’s LG, Samsung and SK Innovation and China’s CATL providing the vital battery cells to power the drive.
“Volkswagen is also taking a close look at possible participation in battery cell manufacturing facilities in Europe,” it added.
On a closer time horizon, VW aims for “slightly” higher unit sales this year than in 2018, with revenues “as much as 5.0 percent” higher and an operating profit margin of between 6.5 and 7.5 percent — up from 5.9 percent last year.
Volkswagen beats forecasts in 2018 despite dieselgate scandal
Volkswagen beats forecasts in 2018 despite dieselgate scandal
- Selling 10.8 million vehicles around the world from its 12 brands brought in €235.8 billion
- ‘We performed very well in spite of strong headwinds,’ chief executive Herbert Diess said in a statement
PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025
RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.
According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.
Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries.
The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.
AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.
AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.
Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”
He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”
Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.
AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance.
Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.
