AerCap Holdings first half January to June and second quarter March to June highlights include a return on equity of 11pc and adjusted return on equity of 14pc, a new agreement with Airbus for 36 A320neo Family aircraft, and an adjusted debt/equity ratio of 2.4 to 1 as of June 30, 2024.
The company initiated a quarterly dividend of $0.25 per share and received credit rating upgrades from Moody’s and S&P, with Fitch revising their outlook to positive.
Other achievements include an unlevered gain on sale margin of 20pc, strong cash flow from operating activities, and an increase in book value per share to $89.47. Aercap returned $345 million to shareholders through share repurchases.
As of June 30, 2024, AerCap’s portfolio consisted of 3,492 aircraft, engines and helicopters that were owned, on order or managed. The average age of the company’s owned aircraft fleet as of June 30, 2024 was seven years three months (four years seven months for new technology aircraft, 14 years six months years for current technology aircraft) and the average remaining contracted lease term was seven years four months.
CEO Aengus Kelly said: “In an industry environment that has remained positive, AerCap continued to produce strong results in the second quarter. We were pleased to receive credit rating upgrades from Moody’s and S&P reflecting the company’s best-in-class performance. We continue to actively deploy capital for growth opportunities and to return capital through share repurchases and dividends to our shareholders. As a result of our outperformance during the first half of the year and our positive outlook going forward, we have raised our earnings guidance for the full year.”
AerCap serves approximately 300 customers around the world.
The company said there are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forward-looking statements, including but not limited to the availability of capital to us and to our customers and changes in interest rates; the ability of our lessees and potential lessees to make lease payments to us; our ability to successfully negotiate flight equipment (which includes aircraft, engines and helicopters) purchases, sales and leases, to collect outstanding amounts due and to repossess flight equipment under defaulted leases, and to control costs and expenses; changes in the overall demand for commercial aviation leasing and aviation asset management services; the continued impacts of the Ukraine Conflict, including the resulting sanctions by the United States, the European Union and other countries, on our business and results of operations, financial condition and cash flows; the effects of terrorist attacks on the aviation industry and on our operations; the economic condition of the global airline and cargo industry and economic and political conditions; the impact of current hostilities in the Middle East, or any escalation thereof, on the aviation industry or our business; development of increased government regulation, including travel restrictions, sanctions, regulation of trade and the imposition of import and export controls, tariffs and other trade barriers; a downgrade in any of our credit ratings; competitive pressures within the industry; regulatory changes affecting commercial flight equipment operators, flight equipment maintenance, engine standards, accounting standards and taxes; and disruptions and security breaches affecting our information systems or the information systems of our third-party providers.
