Signature Flight Support’s market strength helped drive a 3.3 percent increase the operating profit of parent BBA Aviation, even with a softer-than-anticipated growth of U.S. business and general aviation (BGA) movements, BBA Aviation reported late last week. BGA grew 2.3 percent in the first five months of the year, slower than the 3 percent that BBA Aviation had anticipated, the company said in the release of its interim financial report. While June results were not yet posted, a slight contraction was anticipated in North America, based on Argus TraqPak data.

BBA Aviation still posted an operating profit of $180.5 million in the first half of 2018, up from $174.7 million a year ago. Signature contributes 87 percent of BBA Aviation’s underlying operating profit.

The FBO chain produced a 5 percent increase in organic revenue, and overall 15.4 percent rise, to $926.3 million. Signature’s profit, meanwhile, improved 1.8 percent. Increased fuel prices eroded margin a bit from 20 percent in the first half of 2017 to 17.7 percent in the most recent period.

BBA Aviation is continuing its investment in Signature, including with a new 20-year lease at Hartsfield Jackson Atlanta International Airport. Plans call for a new FBO facility and launch of its Elite service there, providing private transfers to and from commercial flights. Other investments include new fuel and revenue management technologies that will be rolled out through 2019.

The parent company's aftermarket service’s group, meanwhile, produced an operating growth of 8.6 percent to $32.9 million, in large part improving with license acquisition specialty legacy parts manufacturer and provider Ontic. CEO Mark Johnstone added that he sees a “strong pipeline” for growth opportunities at Ontic. Operating profit also benefited from the engine repair and overhaul activity, excluding its Middle East operations, which were discontinued.