AerCap has reported a record Q2 2025 with a GAAP net income of $1.3bn and earnings per share of $7.09, driven by strong demand for assets and the success of a significant insurance case in London.
AerCap’s strategy includes significant investments in new LEAP engines, with 84 deliveries so far this year and a partnership announced with Air France-KLM for expanded MRO support.
The company plans to spend an additional $3bn on new equipment by the end of 2025 and has authorized over $800m in share repurchases thus far.
On an earnings call, CEO Gus Kelly said global passenger traffic continues to grow, particularly in APAC and the Middle East, with international travel performance outpacing domestic trends in the U.S. market.
The company maintains robust utilisation rates of 99pc and has signed lease agreements for various widebody and narrowbody aircraft, demonstrating strong demand despite supply chain uncertainties.
AerCpa CEO Gus Kelly shared: “This reflects strong execution and demand for our assets as well as the successful outcome in our contingent and possessed insurance case in the Commercial Court in London in June, Given these strong results and our improved outlook for the year ahead, we have increased our 2025 full-year adjusted EPS guidance again today. This means that AerCap is in an exceptional position to provide unique support to our customers and strong returns to our shareholders. We continue to see strong demand from our customers, despite the uncertainty regarding tariffs and trade. Across the 30 extensions we completed in Q2, the new leases signed were on average higher than their previous lease, despite being older aircraft now. “
“The resilience of international travel means the broad-based demand for widebodies continues. This was shown by the lease agreements we signed for 777s and A330 CLs with carriers in Asia, the Middle East, and Europe in Q2. Furthermore, as a result of the deals we have signed or have in the pipeline in Q3, we have only two widebodies available for lease between now and the end of 2026, out of a fleet of more than 250 owned widebodies.”
“On the narrowbody side, we see similar trends. We signed lease agreements with 12 different carriers in the quarter, including six A320neo placements from our order book with a carrier in the Middle East. We extended 26 used aircraft, with an average age of 16 years, that are on lease to carriers predominantly in Europe and Asia.
“There has been a lot of focus on the OEM supply shortages over the last number of years, which, of course, have been helpful for lease rates and sales pricing. These delays have also resulted in fewer opportunities for organic growth via sale leasebacks. That dynamic is beginning to change, and deals are beginning to present themselves. I am confident that as OEMs ramp up deliveries over the next few years, AerCap will be well positioned to take advantage of these opportunities.
Spare engine demand remains particularly robust, given the challenges with new technology aircraft in particular, keeping utilisation levels high. Spare engine support is a key part of AerCap’s overall proposition to customers, and our portfolio of over 1,200 spare engines, 90pc of which are new technology, mean AerCap is well positioned to do so.”
Peter Juhas shared: “we’re coming off another strong quarter for AerCap in terms of earnings and EPS and, of course, the favorable decision in our insurance case. We continue to be in a position of strength with a strong balance sheet, low leverage, and strong liquidity.”
