- Joe Breitfeller
AerCap Reports Second Quarter Net Income of $250 Million on 3 Percent Increase in Revenue to $1.23 B
AerCap Holdings has reported a second quarter 2021 net income of $250 million or $1.92 on a three percent year-over-year revenue increase to $1.23 billion. When expenses relating to the GECAS transaction are excluded, the company’s net income was $310 million.
On Thursday (July 29, 2021), AerCap Holdings N.V. (NYSE: AER) reported their second quarter 2021 financial results for the period ending June 30, 2021. The aircraft lessor reported a second quarter net income of $250 million or $1.92 per share on a three percent year-over-year increase in revenue to $1.23 billion. If expenses related to the acquisition of GECAS are excluded, the company’s Q2 net profit would be $310 million or $2.39 per share. During the second quarter, AerCap signed lease agreements for 51 aircraft, including 13 widebodies, as well as an agreement for the long-term lease of seven Airbus A350s. The company also received approval for the GECAS transaction from US and UK regulators along with other jurisdictions and expects the transaction to close in Q4 2021.
In Thursday’s announcement, AerCap’s Chief Executive Officer, Aengus Kelly, said,
“AerCap generated strong results for the second quarter of 2021. The airline industry is witnessing an unprecedented and rapid recovery in air travel in the world’s major markets. For AerCap, this resulted in increased demand for our aircraft and a significant increase in our cash flows. With solid earnings, a strong balance sheet, and an improving leasing environment, we are excited about AerCap’s future. We continue to work hard and make good progress on the regulatory approvals and integration workstreams for the GECAS transaction. As the recovery gathers pace, we are even more enthusiastic about the transaction today than we were when we announced it.”
At the close of the second quarter, AerCap reported an adjusted debt/equity ratio of 2.4 to 1, a record for the company and well below the company’s target of 2.7 to 1. Additionally, 100 percent of the company’s new aircraft book has been placed through 2022 and only five percent of AerCap’s fleet comes off lease at the end of 2022. Currently, the company’s fleet consists of 65 percent new technology aircraft, one of the highest percentages in the industry. AerCap’s average remaining contracted lease term is 7.2 years.
As of June 30, 2021, AerCap’s portfolio included 1,319 owned, on order or managed aircraft. The company’s owned fleet has an average age of 6.6 years, with new technology aircraft averaging 3.4 years and current technology aircraft 12.5 years. AerCap ended the second quarter with approximately $1.6 billion in cash, cash equivalents and restricted cash.
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.
In trading Friday afternoon, shares in AerCap (NYSE: AER) were down 0.83% at $52.40/share (Jul 30, 2021, 1:54 PM EDT).