Ireland-based aircraft leasing company AerCap
has announced very successful Q3 results, with the company raising its full-year guidance following an approval for more stock buybacks.
Demand for aircraft remains high
Aengus Kelly, the chief executive officer (CEO) of AerCap, remarked that Q3 was another strong quarter for the aircraft lessor, with demand for aircraft remaining high. The executive highlighted that its utilization rate, extension rate, and gain-on-sale margins were 99%, 92%, and 27%, respectively. The gain-on-sale margin was twice the book value on an equity basis, AerCap highlighted.
“Reflecting our confidence in AerCap’s future, we are raising our full year guidance for 2024. We recently announced another $500 million share repurchase program, taking total authorizations for this year to $1.5 billion.”
Its new guidance estimated that AerCap would end the year with an adjusted earnings per share (EPS) of $10.70. Previously it was $10.25, while the adjusted EPS in 2023 was $10.73, with non-adjusted EPS being $13.78.
Photo: Boeing
Kelly concluded that these actions were underpinned by its industry-leading operating cash flow, a record-breaking $5.6 billion in the past 12 rolling months. In Q3, the operating cash flow was $1.4 billion, with year-to-date (YTD) cash flows measuring $4.1 billion (cash provided by operating activities).
In terms of revenues, the lessor’s lease revenues hopped 2% year-on-year (YoY) to $1.7 billion, with revenues being negatively impacted by $31 million of lease premium amortization.
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More than 3,000 assets
As of September 30, AerCap had a portfolio of 3,491 aircraft, engines, and helicopters, including owned, managed, and on-order assets.
“The average age of the company’s owned aircraft fleet as of September 30, 2024, was 7.4 years (4.7 years for new technology aircraft, 14.7 years for current technology aircraft), and the average remaining contracted lease term was 7.3 years.”
YTD, the Irish aircraft lessor spent $3.6 billion on flight equipment purchases, with an additional $1.3 billion spent on pre-delivery payments. That was offset by $1.8 billion gained from sales or disposal of assets, resulting in net cash that was used in investing activities of $3 billion.
Photo: Nattanon Tavonthammarit | Shutterstock
According to a previous announcement by AerCap, in Q3, the lessor signed 160 lease agreements (13 widebody aircraft, 107 narrowbody aircraft, 24 engines, and 16 helicopters) and purchased 41 aircraft:
The Irish company concluded a further 25 sale transactions, including for three A320neo family aircraft, with the lessor also moving a further three engines and four helicopters.
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Over $60 billion in owned or managed aircraft
Ch-aviation data showed that AerCap owned and managed aircraft for up to $58.8 billion and $60.5 billion, respectively, with the site noting that it could not estimate the values for 42 aircraft.
Photo: AerCap
Its largest fleets were the A320ceo
(296 managed, excludes A319ceo and A321ceo), A320neo (285 owned and managed, excludes A321neo), and Boeing 737-800
(286 managed, excluding 737-800 converted freighters), with the trio of types amounting to 46.22% of its managed fleet.
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