- Joe Breitfeller
AerCap Reports First Quarter Net Income of $228 Million or $1.76 per Share
AerCap has reported a first quarter net income of $228 million or $1.76 per share. The company’s results were impacted by $100 million in cash accounting expenses and $25 million in expenses related to the acquisition of GECAS.
On Wednesday (April 28, 2021), AerCap Holdings N.V. reported their first quarter 2021 financial results. The company reported a first quarter net income of $228 million or $1.76 per share, compared to a net income of $277 million or $2.14 during the same period last year. AerCap’s results were impacted by $100 million of cash accounting and $25 million in GECAS transaction related expenses (before taxes). Excluding the GECAS transaction expenses, AerCap’s net income for the quarter was $250 million or $1.93 per share.
In Wednesday’s announcement, AerCap’s Chief Executive Officer, Aengus Kelly, said,
“The first quarter of 2021 was an exceptional one for AerCap, as we announced plans to acquire GECAS from GE, a transaction that we believe will create significant long-term value for our shareholders. At the same time, we continued to focus on our business and we are pleased to report a significant increase in our leasing activity. During the quarter, AerCap signed 60 lease agreements with airlines in 15 countries, the highest demand we have seen in 18 months. We believe this progress reflects the growing confidence of our airline customers as they plan for the future. While parts of the world remain under governmental restrictions, it is clear that there is significant pent-up consumer demand for air travel. As the vaccine rollout progresses, AerCap’s global fleet of in-demand new technology aircraft will enable us to support our customers as the recovery in air travel continues.”
During the first quarter, AerCap signed lease agreements for 60 aircraft including 28 widebody aircraft. The company also completed an offering of $1 billion in 5-year senior unsecured notes with a 1.75% coupon. Additionally, AerCap announced a definitive agreement to acquire GE Capital Aviation Services (GECAS). A s part of the transaction, AerCap closed a $19 billion bridge loan facility and a $5 billion term loan agreement with a consortium of 20 banks. The company also entered into a new $4.35 billion revolving credit facility, subject to the closing of the GECAS transaction, increasing the company’s total revolving credit facilities to $9 billion (post-closing).
AerCap has placed 100 percent of their new aircraft deliveries from their order book through 2022. The company’s fleet is comprised of 63 percent new technology aircraft, with an average owned-fleet age of 6.6 years and a remaining contracted lease term of 7.3 years. AerCap’s fleet utilization rate for the first quarter was 96 percent, and only seven percent of the company’s aircraft by book value will come off lease through 2022. The company ended the quarter with $8.6 billion in liquidity, an adjusted debt/equity ratio of 2.5 to 1, and a secured debt to total assets ratio of 24 percent.
AerCap Holdings N.V. (NYSE: AER) is the global leader in aircraft leasing and maintains one of the most attractive order books in the industry. The company serves around 200 customers in 80 countries with comprehensive fleet solutions. AerCap is headquartered in Dublin and maintains offices in Shannon, Los Angeles, Singapore, Amsterdam, Shanghai, Abu Dhabi, Seattle and Toulouse.