AerCap Holdings N.V. AER shares are trading lower after it reported
fourth-quarter FY23 results.
Total lease revenue grew 5% Y/Y to $1.718 billion. Total revenues and other income rose
4% to $1.899 billion, missing the consensus of $1.926 billion.
Basic lease rents were $1.576 billion in the fourth quarter, up 6% Y/Y, impacted by $40
million of lease premium amortization.
The aviation leasing company signed 179 lease agreements in the fourth quarter,
comprising 11 wide-body aircraft, 89 narrow-body aircraft, three regional jets, 57 engines, and 19
helicopters.
AerCap had an adjusted return on equity of 16% for the fourth quarter. Adjusted EPS of
$3.11 beat the analyst consensus of $2.45.
Net gain on sale of assets for the fourth quarter was $94 million, relating to 35 assets
sold for $625 million, compared with $121 million a year ago.
During the fourth quarter of 2023, the company recognized recoveries related to the
Ukraine Conflict of $614 million.
The adjusted debt/equity ratio was 2.47 to 1, and AerCap held $1.8 billion in cash and
equivalents as of December 31, 2023.
As of December 31, 2023, AerCap’s portfolio comprised 3,452 aircraft, engines, and
helicopters that were owned, on order, or managed.
Share Buyback: In February 2024, the Board of Directors approved a new
share repurchase program authorizing total repurchases of up to $500 million of shares through September 30,
2024.
Aengus Kelly, Chief Executive Officer of AerCap, said: “These results reflect the
continued strong operating environment across our businesses and the positive momentum for leasing and sales
of aircraft, engines, and helicopters.”
“Given the strong tailwinds that we see for demand for aircraft, engines, and
helicopters, we are confident about the outlook for AerCap in 2024 and beyond.”
Price Action: AER shares are trading lower by 1.06% to $77.74 on the last
check Friday.