Aercap profits grow 75% to €541m

Profits at Irish aircraft leasing giant Aercap Holdings rose 75 per cent to $596 million (€541m) in the three months to the end of June, the latest figures show.

Aercap, which buys aircraft from manufacturers and leases them to airlines around the world, said revenues in the second quarter of the year rose to $1.92 billion from $1.7 billion during the same period in 2022.

Net income grew to $596 million in the three-month period from $340 million in the comparable three months last year, an increase of slightly more than 75 per cent.

Aercap’s earned a $1.16 billion profit in the six months to June 30th. This was a turnaround from a $1.5 billion loss recorded in the first half of 2022.

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However, losses from aircraft stranded in Russia following its invasion of Ukraine marred last year’s results. Aercap is one of several aircraft lessors worldwide suing insurers for those losses, claims that the underwriters contest on various grounds.

Continued strong demand for aircraft prompted Aercap to predict that earnings per share for the full year would be between $8.50 and $9 a share.

Aengus Kelly, Aercap chief executive, noted that the company performed strongly during the second quarter of this year.

“We continue to benefit from strong demand for our aviation assets, as well as a robust sales market,” he said. “Our confidence in the future is demonstrated by our increased 2023 full-year earnings per share guidance as well as our new $500 million share repurchase programme, which takes our share repurchase authorisations so far this year to $1.5 billion,” added Mr Kelly.

Aercap owns, manages or has ordered 3,467 planes, helicopters and engines, making it the biggest player in its industry worldwide. It leases these aircraft and engines to around 300 customers around the globe.