AerCap’s 200 new-tech aircraft pipeline

AerCap expects to take delivery of over 200 new technology aircraft between now and the end of 2020, according to its CEO.

Aengus Kelly, commenting on the company’s second quarter 2018 results that produced a net income of US$254.2 million, said the company “continues to see strong global demand from our airline customers and have access to $11.7 billion of liquidity to meet our strategic objectives.”

Net income for the first half of 2018 was $519.6 million, and also saw 90 aircraft transactions executed, including 17 widebody transactions. A total of 20 aircraft were bought for a total of $1.5 billion, with AerCap’s average owned fleet age now at 6.6 years. The average remaining lease term for its aircraft is at 7.1 years.

Kelly described the financial results as strong, although the net income for Q2 2018 was down on the comparative figure for 2017 of $282.9 million. The decrease in net income was primarily driven by lower other income as well as a decrease in net gain on sale of assets, according to AerCap.

Basic lease rents were $1,023.1 million for Q2 2018, compared with $1,053.5 million a year earlier. The decrease was primarily due to the sale of mid-life and older aircraft from April 2017 through June 2018, it stated.

Net gain on sale of assets for the second quarter was $51.2 million, relating to 30 aircraft sold and four aircraft reclassified to finance leases, compared with $69.5 million for the same period in 2017, relating to 24 aircraft sold and six aircraft reclassified to finance leases.

Dublin, Ireland-headquartered AerCap’s portfolio currently consists (at end June) of 1,471 aircraft owned, on order or managed.

Written by: Mark Thomas

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