Financial Performance - Total revenues and other income for Q2 2023 reached $1,924,381 thousand, a 15.1% increase from $1,670,712 thousand in Q2 2022[17] - Lease revenue for Q2 2023 was $1,717,382 thousand, up 9.8% from $1,564,324 thousand in Q2 2022[17] - Net income for Q2 2023 was $496,870 thousand, compared to $340,562 thousand in Q2 2022, representing a 46% increase[17] - Basic earnings per share for Q2 2023 were $2.13, an increase from $1.41 in Q2 2022[17] - Net income for the six months ended June 30, 2023, was $932,147 thousand, a significant improvement from a loss of $1,660,119 thousand in the same period of 2022[22] - Total comprehensive income attributable to AerCap Holdings N.V. for the three months ended June 30, 2023, was $547,079 thousand, compared to $368,439 thousand for the same period in 2022[20] - For the six months ended June 30, 2023, AerCap reported total comprehensive income of $949.4 million, compared to $368.4 million for the same period in 2022[36] - Basic Earnings Per Share (EPS) for the six months ended June 30, 2023, was $3.93, compared to a loss of $(6.92) for the same period in 2022[140] - The company reported net income of $924.999 million for the six months ended June 30, 2023, compared to a net loss of $(1.661 billion) for the same period in 2022[140] Assets and Liabilities - Total assets as of June 30, 2023, were $69,928,407 thousand, slightly up from $69,726,918 thousand as of December 31, 2022[15] - Total liabilities stood at $53,537,899 thousand as of June 30, 2023, compared to $53,531,868 thousand at the end of 2022[15] - The company’s accumulated retained earnings increased to $8,598,005 thousand as of June 30, 2023, from $7,674,922 thousand at the end of 2022[14] - As of June 30, 2023, AerCap Holdings N.V. had total assets of $70 billion, with 2,132 aircraft owned, managed, or on order[40] - The total equity of AerCap Holdings N.V. as of June 30, 2023, was $16.39 billion, which includes $8.60 billion in additional paid-in capital[36] - The principal amount of AerCap's outstanding indebtedness totaled $46.5 billion, with undrawn lines of credit amounting to $11.3 billion[103] Cash Flow and Expenses - Net cash provided by operating activities for the six months ended June 30, 2023, was $2,556,596 thousand, slightly up from $2,508,450 thousand in the prior year[22] - Interest expense for Q2 2023 was $427,376 thousand, an increase from $399,994 thousand in Q2 2022[17] - Selling, general and administrative expenses for the six months ended June 30, 2023, totaled $230.341 million, an increase from $202.347 million in the same period of 2022[130] - Interest paid, net of amounts capitalized, for the six months ended June 30, 2023, was $821,700 thousand, an increase from $760,509 thousand in the same period of 2022[25] Asset Management - The company reported a net gain on the sale of assets of $165,909 thousand in Q2 2023, significantly higher than $35,200 thousand in Q2 2022[17] - The company experienced a net gain on the sale of assets of $265,449 thousand for the six months ended June 30, 2023, compared to a loss of $38,485 thousand in the same period of 2022[22] - The net book value of flight equipment held for operating leases at the end of the period was $55,604.91 million, an increase of 0.7% from $54,306.78 million as of June 30, 2022[59] - Flight equipment held for sale had a total net book value of $808.5 million as of June 30, 2023, compared to $292.8 million as of December 31, 2022[63] - Maintenance rights and lease premium, net, decreased to $2,977.73 million as of June 30, 2023, from $3,364.45 million as of December 31, 2022[65] Debt and Financing - The company issued debt totaling $2,327,579 thousand during the six months ended June 30, 2023, compared to $84,996 thousand in the same period of 2022[22] - The company has $12.03 million in secured debt, with a weighted average interest rate of 6.07%[104] - Total unsecured debt outstanding is $43.52 million, with a weighted average interest rate of 3.06%[104] - The company completed the redemption of $600 million of 4.125% Senior Notes due 2023 in February 2023[108] - A secured facility agreement of $900 million was entered into in March 2023, maturing on November 29, 2030[108] Shareholder Actions - The company repurchased 5,057,892 ordinary shares at an average price of $58.54 per share during the three months ended June 30, 2023[112] - A new share repurchase program was approved for up to $500 million through December 31, 2023[112] - AerCap repurchased 8,788,890 ordinary shares from GE for $500 million, with an average repurchase price of $58.96 per share during the three months ended June 30, 2023[156] Insurance and Claims - The company submitted claims totaling approximately $4.1 billion against Russian airlines' insurers for aircraft and engines lost in Russia, with ongoing legal proceedings initiated in June 2023[123] - The company submitted an insurance claim for approximately $3.5 billion under its contingent and possessed insurance policy related to aircraft and engines leased to Russian airlines[169] - The company has not recognized any claim receivables related to its claims under the C&P Policy and Russian airlines' insurance policies as of June 30, 2023, due to uncertainties in recovery[124] - AerCap intends to vigorously pursue claims under its insurance policies, with potential recoveries being uncertain as of June 30, 2023[171] Market and Operational Risks - The company is facing significant risks due to the ongoing Ukraine Conflict, which has led to sanctions affecting its business operations and financial condition[207] - Recovery in air travel post-Covid-19 remains uncertain, impacting the aviation industry's demand for leasing services[207] - Competitive pressures within the aviation leasing industry are increasing, potentially impacting market share and profitability[207] - Regulatory changes, including travel restrictions and trade regulations, could further complicate operational strategies[207] - Economic conditions in the global airline and cargo industry are being closely evaluated for their potential impact on business performance[207] Transition and Compliance - The company has transitioned its LIBOR-based instruments to SOFR, with the transition expected to conclude by September 30, 2023[51] - AerCap has transitioned its longer-dated derivative instruments from LIBOR to Term SOFR since October 2022, with completion expected by September 30, 2023[83] - The company remains in compliance with financial covenants across its various debt obligations as of June 30, 2023[103]

Financial Data and Key Metrics Changes - AerCap generated adjusted net income of $566 million and adjusted earnings per share (EPS) of $2.34 for Q1 2023, reflecting a strong recovery in air travel demand [5][6] - Operating cash flows were robust at $1.4 billion, driven by strong collections and higher asset utilization [6][19] - GAAP net income for the quarter was $432 million or $1.79 per share, impacted by purchase accounting adjustments totaling $167 million [15][16] Business Line Data and Key Metrics Changes - Basic lease rents increased to $1.537 billion, up $43 million from the previous quarter, benefiting from strong cash collections [16] - Maintenance revenues were $187 million, reflecting a $45 million reduction due to maintenance rights amortization [16] - The net gain on sale of assets was $100 million, with 35 owned assets sold for total proceeds of $639 million, resulting in an 18% gain on sale margin [17] Market Data and Key Metrics Changes - Demand for air travel is robust, with airlines reporting record performance metrics across bookings and revenues [6][7] - In the U.S., record passenger numbers were announced by the TSA as airlines reopen routes, particularly to Asia [7] - European carriers are exceeding expectations despite geopolitical uncertainties, while Asian airlines are rapidly returning to pre-pandemic capacity levels [7] Company Strategy and Development Direction - AerCap plans to leverage strong market conditions to continue executing transactions and generating shareholder value through share repurchases [12][14] - The company aims to sell aircraft at strong gains and redeploy capital into share buybacks, enhancing shareholder returns [12][13] - AerCap's strategy includes maintaining a diversified portfolio and focusing on asset quality, with approximately 70% of its portfolio in new technology aircraft [83] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future aircraft demand, citing a supply-demand imbalance in the industry [26] - The company anticipates continued strong earnings and cash flows, supported by robust demand for its products [14][26] - Management noted that the reopening of China is a significant driver for global aviation recovery [59] Other Important Information - AerCap has a strong liquidity position with total sources of liquidity around $18 billion, resulting in a coverage ratio of 1.3 times [18] - The company executed $6.7 billion in financing, reducing its funding requirement for the remainder of the year to approximately $4 billion to $5 billion [20][86] - A new $500 million share repurchase program was announced, reflecting the company's commitment to returning capital to shareholders [21] Q&A Session Summary Question: Discussion on sales margins and asset mix - Management indicated that the strong sales margin was driven by a combination of asset types and the strategic construction of both legacy AerCap and GCAS portfolios [24][25] Question: Engine leasing business and demand for spare engines - Management noted that lease rates for engines have increased significantly, driven by a lack of supply and longer lead times for critical parts [28][29] Question: Thoughts on larger scale sales and market opportunities - Management expressed readiness to capitalize on market opportunities, indicating a strong pipeline for asset sales [32][33] Question: Aircraft placements and management strategy - Management highlighted a proactive approach to managing aircraft placements, anticipating increased demand and adjusting strategies accordingly [40][41] Question: Impact of China reopening on business - Management acknowledged that China's reopening is a major driver for global aviation and indicated a strategic reduction in exposure to China over time [59][60] Question: Insurance claims and rates - Management confirmed that insurance rates have increased, reflecting broader industry trends, and emphasized the pursuit of valid claims [64][66] Question: Helicopter leasing business performance - Management reported positive performance in the helicopter leasing business, particularly in the oil and gas sector [72]

FIRST QUARTER 2023 FINANCIAL RESULTS AERCAP HOLDINGS N.V. FORWARD LOOKING STATEMENTS AND NON-GAAP FINANCIAL INFORMATION ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of May 2023 Commission File Number 001-33159 AERCAP HOLDINGS N.V. (Translation of Registrant's Name into English) AerCap House, 65 St. Stephen's Green, Dublin D02 YX20, Ireland, +353 1 819 2010 (Address of Principal Executive Office) Indicate by check mark whether the registrant files or will file annual repo ...

Debt and Financial Exposure - As of December 31, 2022, the principal amount of the company's outstanding floating rate debt was $9.3 billion, representing 20% of the total indebtedness[41] - The company had $3.2 billion of floating rate debt linked to a SOFR index and $5.1 billion linked to USD LIBOR as of December 31, 2022[48] - Rising interest rates may negatively impact the company's net income, particularly if higher interest payments on floating rate debt are not hedged[42] - Negative changes in credit ratings could limit the company's ability to obtain financing or increase borrowing costs[46] - The transition from LIBOR to alternative benchmark rates like SOFR may expose the company to additional financial risks[48] Lease Revenue and Market Risks - During the year ended December 31, 2022, 98.2% of the company's basic lease rents from flight equipment under operating leases were attributable to leases with fixed lease rates[42] - The company derives 53% of its lease revenue from airlines in emerging market countries, which are more vulnerable to economic and political problems[55] - As of December 31, 2022, 16.9% of the company's fleet was on lease to Chinese airlines, exposing it to economic and political risks in China[61] - The company faces risks related to market demand for flight equipment, which may decline due to changes in economic conditions and overall air travel health[93] - The financial strength of lessees is critical, as deteriorating conditions could lead to delays or failures in rental payments, impacting the company's revenue[103] Geopolitical and Economic Risks - The company recognized a pre-tax net charge of $2.7 billion in 2022 due to the inability to recover a significant portion of assets leased to Russian airlines amid geopolitical conflicts[52] - The ongoing Ukraine Conflict may lead to adverse effects on macroeconomic conditions, security, fuel prices, and financial markets, impacting the company's ability to lease aircraft and collect payments[91] - Increased fuel prices and volatility could adversely affect lessees' ability to meet lease payment obligations, with fuel prices reaching their highest levels since 2008 due to the Ukraine Conflict[105] - Terrorist attacks and geopolitical conflicts have historically negatively impacted the aviation industry, leading to increased costs and decreased demand[83] Regulatory and Compliance Risks - The company is subject to various international risks, including trade sanctions and export controls, which could negatively impact its business operations and financial condition[62] - The General Data Protection Regulation (GDPR) could impose significant costs, with potential fines of up to 4% of annual global revenue for non-compliance[65] - Environmental regulations related to climate change may require substantial compliance costs and could limit the usability or economic life of certain aircraft[66] - The EU Emissions Trading System (ETS) will phase out free emission allowances for the aviation sector by 2026, potentially impacting the company's ability to lease or sell less efficient aircraft[67] Insurance and Recovery Challenges - The company has experienced increased insurance costs and reduced coverage due to the Ukraine Conflict, which may adversely affect its financial condition[74] - The company has submitted insurance claims related to losses from the Ukraine Conflict, with uncertainty regarding timely recovery under its policies[85] - The company submitted an insurance claim for approximately $3.5 billion under its C&P Policy for aircraft remaining in Russia, and legal proceedings were initiated to recover this amount[88] - An additional insurance claim of approximately $97 million was submitted for the loss of one aircraft in Ukraine, with a total claim value of around $100 million for two aircraft[90] - The company has not recognized any claim receivables related to its insurance claims as of December 31, 2022, due to uncertainties in recovery[89] Operational and Competitive Challenges - The aviation leasing industry is highly competitive, with potential competition from emerging aircraft leasing companies and other market participants, which could adversely affect financial results[121] - The concentration of aircraft manufacturing among a few manufacturers poses risks related to delivery delays and market conditions, potentially affecting lease rates and aircraft values[98] - Manufacturing delays from major suppliers like Boeing could negatively impact cash flow and results of operations, as seen with the suspension of Boeing 787 deliveries[126] - The company anticipates that restructuring or terminating leases due to lessee financial difficulties may result in less favorable lease terms and reduced revenue[110] Cybersecurity and Governance Risks - Cyberattacks pose a risk to the company's IT systems, potentially leading to material disruptions and loss of sensitive information, which could harm business operations[131] - GE currently owns approximately 45% of the company's outstanding ordinary shares, and future sales by GE may negatively affect the market price of these shares[140] - The company may face difficulties in enforcing judgments against its directors and officers in the United States due to its incorporation in the Netherlands[136] - The financial instability of aircraft manufacturers could impact the delivery of aircraft and engines on order, negatively affecting cash flow and operational results[123] Taxation and Financial Reporting - The effective tax rate may be impacted by the division of earnings among different tax jurisdictions, which could materially affect financial results[145] - Irish corporate income tax rates are 12.5% on trading income, 33% on capital gains, and 25% on other income, with expectations that most Irish income will be treated as trading income[146] - The EU Anti-Tax Avoidance Directive may lead to changes in the effective tax rate in future periods[148] - The U.S. Corporate Alternative Minimum Tax (AMT) could impose a 15% minimum tax on adjusted financial statement income for corporations with significant average annual income[151] - The company may fail to qualify for benefits under income tax treaties, which could result in increased U.S. federal and state taxes[152] - The OECD's Base Erosion and Profit Shifting (BEPS) initiative may lead to a global minimum effective tax rate of 15% for groups with global turnover exceeding €750 million, potentially increasing the effective tax rate[154]