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PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) AerCap's unaudited Q1 2024 and 2023 financial statements, including balance sheets, income, cash flows, and detailed accounting notes [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (USD in thousands) | Metric | March 31, 2024 | December 31, 2023 | Change (QoQ) | Percentage Change (QoQ) | | :-------------------------------- | :------------- | :---------------- | :----------- | :---------------------- | | Total Assets | $71,105,025 | $71,274,559 | $(169,534) | -0.24% | | Total Liabilities | $54,149,219 | $54,685,513 | $(536,294) | -0.98% | | Total Equity | $16,955,806 | $16,589,046 | $366,760 | 2.21% | - Cash and cash equivalents decreased by **$335.2 million** (20.6%) from **$1,627.2 million** at December 31, 2023, to **$1,292.0 million** at March 31, 2024[13](index=13&type=chunk) - Flight equipment held for operating leases, net, decreased by **$553.9 million** (0.97%) from **$57,091.2 million** at December 31, 2023, to **$56,537.2 million** at March 31, 2024[13](index=13&type=chunk) [Unaudited Condensed Consolidated Income Statements](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Income%20Statements) Condensed Consolidated Income Statement Highlights (USD in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change (YoY) | Percentage Change (YoY) | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | :---------------------- | | Total Revenues and other income | $2,018,088 | $1,865,722 | $152,366 | 8.17% | | Total Expenses | $1,372,832 | $1,406,640 | $(33,808) | -2.40% | | Net income | $604,210 | $435,277 | $168,933 | 38.81% | | Net income attributable to AerCap Holdings N.V. | $604,214 | $432,105 | $172,109 | 39.83% | | Basic earnings per share | $3.09 | $1.81 | $1.28 | 70.72% | | Diluted earnings per share | $3.02 | $1.79 | $1.23 | 68.72% | - Net gain on sale of assets increased by **$60.0 million** (60.3%) to **$159.6 million** in Q1 2024, compared to **$99.5 million** in Q1 2023[15](index=15&type=chunk) - Interest expense increased by **$55.3 million** (12.7%) to **$491.5 million** in Q1 2024, from **$436.2 million** in Q1 2023[15](index=15&type=chunk) [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income Highlights (USD in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change (YoY) | | :---------------------------------------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Net income | $604,210 | $435,277 | $168,933 | | Net gain (loss) on derivatives, net of tax | $67,198 | $(31,566) | $98,764 | | Total comprehensive income (loss) | $671,408 | $405,490 | $265,918 | | Total comprehensive income attributable to AerCap Holdings N.V. | $671,412 | $402,318 | $269,094 | - The company reported a significant shift in derivative performance, moving from a net loss of **$31.6 million** in Q1 2023 to a net gain of **$67.2 million** in Q1 2024, net of tax[18](index=18&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (USD in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change (YoY) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Net cash provided by operating activities | $1,375,666 | $1,363,401 | $12,265 | | Net cash used in investing activities | $(841,750) | $(1,278,075) | $436,325 | | Net cash used in financing activities | $(872,665) | $(579,729) | $(292,936) | | Net decrease in cash, cash equivalents and restricted cash | $(338,749) | $(494,403) | $155,654 | - Net cash used in investing activities decreased by **$436.3 million**, primarily due to lower purchase of flight equipment (**$670.4 million** in Q1 2024 vs. **$1,291.1 million** in Q1 2023) and higher proceeds from asset sales (**$768.4 million** in Q1 2024 vs. **$470.3 million** in Q1 2023)[21](index=21&type=chunk) - Net cash used in financing activities increased by **$292.9 million**, driven by higher debt repayments (**$2,237.8 million** in Q1 2024 vs. **$1,377.5 million** in Q1 2023) and increased share repurchases (**$347.9 million** in Q1 2024 vs. **$501.0 million** in Q1 2023)[21](index=21&type=chunk) [Unaudited Condensed Consolidated Statements of Equity](index=14&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Equity) Condensed Consolidated Statements of Equity Highlights (USD in thousands) | Metric | March 31, 2024 | December 31, 2023 | Change (QoQ) | | :--------------------------------------- | :------------- | :---------------- | :----------- | | Total AerCap Holdings N.V. shareholders' equity | $16,955,594 | $16,588,830 | $366,764 | | Treasury shares, at cost | $(1,144,579) | $(819,305) | $(325,274) | | Accumulated other comprehensive income | $75,502 | $8,304 | $67,198 | | Accumulated retained earnings | $11,407,200 | $10,802,599 | $604,601 | - Share repurchases amounted to **$335.8 million** during the three months ended March 31, 2024[31](index=31&type=chunk) - Accumulated other comprehensive income significantly increased by **$67.2 million**, primarily due to net gains on derivatives[31](index=31&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations for the financial statements, covering general information, accounting policies, asset and liability movements, debt, tax, equity, and commitments [Note 1. General](index=15&type=section&id=Note%201.%20General) - AerCap Holdings N.V. is a global leader in aviation leasing, with a portfolio of **2,044 aircraft**, over **1,000 engines**, and over **300 helicopters**, totaling **$71 billion** in assets as of March 31, 2024[33](index=33&type=chunk) [Note 2. Basis of presentation](index=15&type=section&id=Note%202.%20Basis%20of%20presentation) - The Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP and presented in U.S. dollars, consolidating all companies under effective control and variable interest entities (VIEs) where AerCap is the Primary Beneficiary[35](index=35&type=chunk)[36](index=36&type=chunk)[38](index=38&type=chunk) - The company manages and reports its results based on a single business segment: leasing, financing, sales, and management of commercial flight equipment[43](index=43&type=chunk) [Note 3. Summary of significant accounting policies](index=16&type=section&id=Note%203.%20Summary%20of%20significant%20accounting%20policies) - The company is evaluating the impact of new accounting standards, ASU 2023-09 (Income Tax Disclosures) and ASU 2023-07 (Segmental Reporting), effective for fiscal years beginning after December 15, 2024 and 2023 respectively, but does not expect a material effect on its consolidated financial statements[45](index=45&type=chunk)[46](index=46&type=chunk) [Note 4. Cash, cash equivalents and restricted cash](index=16&type=section&id=Note%204.%20Cash,%20cash%20equivalents%20and%20restricted%20cash) Cash, Cash Equivalents and Restricted Cash (USD in thousands) | Metric | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | :------------- | | Cash and cash equivalents | $1,291,962 | $1,627,181 | $1,089,046 | | Restricted cash | $193,533 | $198,285 | $174,621 | | Total cash, cash equivalents and restricted cash | $1,485,495 | $1,825,466 | $1,263,667 | - Restricted cash primarily relates to Export Credit Agency (ECA) financings, Export-Import Bank of the United States (Ex-Im) financings, AerFunding revolving credit facility, and Brazilian Development Bank (BNDES) financing[47](index=47&type=chunk) [Note 5. Flight equipment held for operating leases, net](index=17&type=section&id=Note%205.%20Flight%20equipment%20held%20for%20operating%20leases,%20net) Movements in Flight Equipment Held for Operating Leases (USD in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Net book value at beginning of period | $57,091,166 | $55,220,809 | | Additions | $1,013,055 | $1,677,164 | | Depreciation | $(625,549) | $(602,294) | | Disposals and transfers to held for sale | $(808,102) | $(739,562) | | Net book value at end of period | $56,537,244 | $55,487,268 | - Additions to flight equipment held for operating leases decreased by **$664.1 million** (39.6%) in Q1 2024 compared to Q1 2023[50](index=50&type=chunk) [Note 6. Investment in finance leases, net](index=17&type=section&id=Note%206.%20Investment%20in%20finance%20leases,%20net) Investment in Finance Leases, Net (USD in thousands) | Component | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | Future minimum lease payments to be received, net | $1,294,619 | $1,156,693 | | Estimated residual values of leased flight equipment | $552,272 | $597,184 | | Less: Unearned income | $(523,799) | $(490,502) | | Less: Allowance for credit losses | $(8,985) | $(8,924) | | Total Investment in finance leases, net | $1,314,107 | $1,254,451 | - Interest income from investment in finance leases, net, was **$25 million** for Q1 2024, a decrease from **$27 million** in Q1 2023[51](index=51&type=chunk) [Note 7. Flight equipment held for sale](index=18&type=section&id=Note%207.%20Flight%20equipment%20held%20for%20sale) - Flight equipment held for sale increased to **$459 million** as of March 31, 2024, from **$297 million** as of December 31, 2023[53](index=53&type=chunk)[54](index=54&type=chunk) [Note 8. Maintenance rights and lease premium, net](index=18&type=section&id=Note%208.%20Maintenance%20rights%20and%20lease%20premium,%20net) Maintenance Rights and Lease Premium, Net (USD in thousands) | Component | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | Maintenance rights | $2,013,001 | $2,099,513 | | Lease premium, net | $584,362 | $630,449 | | Total | $2,597,363 | $2,729,962 | - Amortization expense for lease premium assets was **$42 million** in Q1 2024, down from **$46 million** in Q1 2023[56](index=56&type=chunk) [Note 9. Other intangibles, net](index=19&type=section&id=Note%209.%20Other%20intangibles,%20net) Other Intangibles, Net (USD in thousands) | Component | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | Customer relationships, net | $150,765 | $156,059 | | Other intangible assets | $5,432 | $7,108 | | Total | $156,197 | $163,167 | - Amortization expense for customer relationships remained consistent at **$5 million** for both Q1 2024 and Q1 2023[57](index=57&type=chunk) [Note 10. Associated companies](index=19&type=section&id=Note%2010.%20Associated%20companies) Associated Companies (Equity Method, USD in thousands) | Company | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | Shannon Engine Support (50.0% ownership) | $839,293 | $797,185 | | AerDragon Aviation Partners Limited (16.7% ownership) | $90,370 | $91,898 | | Other (9.5-39.3% ownership) | $78,507 | $82,434 | | Total | $1,008,170 | $971,517 | [Note 11. Other assets](index=20&type=section&id=Note%2011.%20Other%20assets) Other Assets (USD in thousands) | Component | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | Straight-line rents, prepaid expenses and other | $689,974 | $692,521 | | Notes receivable, net | $649,506 | $663,644 | | Loans receivable, net | $649,089 | $654,925 | | Derivative assets | $153,228 | $130,614 | | Total Other Assets | $3,000,827 | $3,016,524 | - Interest income from loans receivable, net of allowance for credit losses, increased to **$14 million** in Q1 2024 from **$6 million** in Q1 2023[60](index=60&type=chunk) [Note 12. Derivative financial instruments](index=21&type=section&id=Note%2012.%20Derivative%20financial%20instruments) - AerCap uses interest rate derivatives (swaps, caps, U.S. treasury locks) to hedge variable rate debt, with derivative assets increasing to **$153.2 million** and derivative liabilities decreasing to **$16.2 million** as of March 31, 2024[62](index=62&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) Derivative Financial Instruments Fair Values (USD in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | Total derivative assets | $153,228 | $130,614 | | Total derivative liabilities | $16,220 | $80,840 | - A net gain of **$67.2 million** on derivatives, net of tax, was recorded in other comprehensive income in Q1 2024, a significant improvement from a **$31.6 million** loss in Q1 2023[68](index=68&type=chunk) [Note 13. Accounts payable, accrued expenses and other liabilities](index=23&type=section&id=Note%2013.%20Accounts%20payable,%20accrued%20expenses%20and%20other%20liabilities) Accounts Payable, Accrued Expenses and Other Liabilities (USD in thousands) | Component | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | Deferred revenue | $808,870 | $827,525 | | Accounts payable and accrued expenses | $429,405 | $444,042 | | Accrued interest | $421,051 | $348,568 | | Operating lease liabilities | $109,445 | $92,083 | | Derivative liabilities | $16,220 | $80,840 | | Total | $1,784,991 | $1,793,058 | [Note 14. Accrued maintenance liability](index=23&type=section&id=Note%2014.%20Accrued%20maintenance%20liability) Movements in Accrued Maintenance Liability (USD in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Accrued maintenance liability at beginning of period | $2,863,730 | $2,503,202 | | Maintenance payments received | $215,207 | $177,737 | | Maintenance payments returned | $(26,748) | $(31,185) | | Release to income upon sale | $(2,922) | $(42,434) | | Release to income other than upon sale | $(50,407) | $(110,953) | | Accrued maintenance liability at end of period | $2,975,140 | $2,487,969 | [Note 15. Debt](index=24&type=section&id=Note%2015.%20Debt) - As of March 31, 2024, total outstanding indebtedness was **$46.0 billion**, with **$11.2 billion** in undrawn lines of credit, and the company remained in compliance with financial covenants[73](index=73&type=chunk) Summary of Indebtedness (USD in thousands) | Debt Type | March 31, 2024 Amount Outstanding | December 31, 2023 Amount Outstanding | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Unsecured Debt | $33,915,349 | $34,295,349 | | Secured Debt | $9,793,413 | $10,151,176 | | Subordinated Debt | $2,250,000 | $2,250,000 | | Debt issuance costs, discounts and premium | $(235,095) | $(212,622) | | Total Debt | $45,723,667 | $46,483,903 | - In January 2024, AerCap Trust and AICDC co-issued **$800 million** of 5.10% Senior Notes due 2029 and **$700 million** of 5.30% Senior Notes due 2034[78](index=78&type=chunk) [Note 16. Income taxes](index=25&type=section&id=Note%2016.%20Income%20taxes) - The effective tax rate was **14.3%** for Q1 2024, up from **14.0%** for Q1 2023, primarily due to the introduction of Pillar Two rules in Ireland from January 1, 2024[79](index=79&type=chunk)[80](index=80&type=chunk) - Income tax expense in Q1 2024 was reduced by **$8 million** due to a non-recurring tax deduction from a prior period[79](index=79&type=chunk) [Note 17. Equity](index=26&type=section&id=Note%2017.%20Equity) - During Q1 2024, AerCap repurchased **4.3 million** ordinary shares at an average price of **$77.89** per share[82](index=82&type=chunk) - Between April 1 and April 26, 2024, an additional **1.1 million** ordinary shares were repurchased at an average price of **$83.66** per share[83](index=83&type=chunk) [Note 18. Other income](index=26&type=section&id=Note%2018.%20Other%20income) Other Income (USD in thousands) | Component | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Interest and other income | $84,047 | $33,262 | | Management fees | $9,370 | $9,115 | | Total Other Income | $93,417 | $42,377 | - Other income increased significantly by **$51.0 million** (120.3%) in Q1 2024, primarily driven by higher interest and other income[84](index=84&type=chunk) [Note 19. Net charges related to Ukraine Conflict](index=27&type=section&id=Note%2019.%20Net%20charges%20related%20to%20Ukraine%20Conflict) - AerCap recognized a net recovery of **$23 million** in Q1 2024 for a Boeing 777-300ER aircraft recovered from Ukraine, compared to **$14 million** in Q1 2023 primarily from letters of credit[91](index=91&type=chunk)[92](index=92&type=chunk) - The company is vigorously pursuing claims under its Contingent and Possessed (C&P) Policy and Operator Reinsurance/Insurance Policies for assets remaining in Russia and Ukraine, with claims totaling approximately **$2.2 billion** under the C&P Policy and **$1.8 billion** under Operator Policies as of March 31, 2024[88](index=88&type=chunk)[90](index=90&type=chunk)[123](index=123&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) [Note 20. Asset impairment](index=28&type=section&id=Note%2020.%20Asset%20impairment) - Asset impairment charges decreased significantly to **$3 million** in Q1 2024 from **$34 million** in Q1 2023, primarily related to lease terminations and sales transactions[94](index=94&type=chunk) - In Q1 2024, impairment charges were fully offset by maintenance revenue, while in Q1 2023, they were only partially offset[95](index=95&type=chunk) [Note 21. Selling, general and administrative expenses](index=28&type=section&id=Note%2021.%20Selling,%20general%20and%20administrative%20expenses) Selling, General and Administrative Expenses (USD in thousands) | Component | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Personnel expenses | $54,501 | $48,448 | | Share-based compensation | $25,378 | $26,863 | | Professional services | $10,773 | $8,893 | | Travel expenses | $8,424 | $10,819 | | Office expenses | $7,811 | $6,442 | | Other expenses | $12,405 | $9,139 | | Total SG&A | $119,292 | $110,604 | [Note 22. Allowance for credit losses](index=28&type=section&id=Note%2022.%20Allowance%20for%20credit%20losses) Movements in Allowance for Credit Losses (USD in thousands) | Metric | March 31, 2024 Total | March 31, 2023 Total | | :--------------------------------------- | :------------------- | :------------------- | | Allowance for credit losses at beginning of period | $33,887 | $137,861 | | Current period increase (decrease) in provision | $(219) | $(8,585) | | Write-offs charged against the allowance | $0 | $(36,883) | | Allowance for credit losses at end of period | $33,668 | $92,393 | - The total allowance for credit losses decreased to **$33.7 million** at March 31, 2024, from **$92.4 million** at March 31, 2023, primarily due to significant write-offs in Q1 2023[97](index=97&type=chunk) [Note 23. Earnings per share](index=29&type=section&id=Note%2023.%20Earnings%20per%20share) Earnings Per Share (EPS) (USD) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Basic EPS | $3.09 | $1.81 | | Diluted EPS | $3.02 | $1.79 | | Weighted average ordinary shares outstanding—basic | 195,773,846 | 239,368,415 | | Weighted average ordinary shares outstanding—diluted | 200,085,734 | 241,559,712 | - Basic EPS increased by **70.7%** and diluted EPS increased by **68.7%** year-over-year, driven by higher net income and a lower weighted average number of shares outstanding[99](index=99&type=chunk) [Note 24. Variable interest entities](index=30&type=section&id=Note%2024.%20Variable%20interest%20entities) - Substantially all assets and liabilities on the balance sheet are held in consolidated Variable Interest Entities (VIEs) for which AerCap is deemed the Primary Beneficiary[103](index=103&type=chunk)[104](index=104&type=chunk) - The maximum exposure to loss in non-consolidated VIEs was **$119.4 million** as of March 31, 2024[112](index=112&type=chunk) [Note 25. Related party transactions](index=32&type=section&id=Note%2025.%20Related%20party%20transactions) - Lease rental income from Shannon Engine Support (SES) increased to **$32 million** in Q1 2024 from **$28 million** in Q1 2023[115](index=115&type=chunk) Amounts Received from Other Related Parties (USD in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Management fees and other | $4,322 | $3,009 | | Dividends | $3,540 | $2,512 | | Total | $7,862 | $5,521 | - GE is no longer a related party as of November 16, 2023, following the completion of its sale of AerCap's outstanding ordinary shares[117](index=117&type=chunk) [Note 26. Commitments and contingencies](index=32&type=section&id=Note%2026.%20Commitments%20and%20contingencies) - As of March 31, 2024, AerCap had commitments to purchase **327 new aircraft**, **32 engines**, and **7 new helicopters** for delivery through 2029, 2026, and 2025 respectively[119](index=119&type=chunk) Movements in Prepayments on Flight Equipment (USD in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Prepayments on flight equipment at beginning of period | $3,576,187 | $3,806,602 | | Prepayments and additions during the period, net | $923,694 | $432,932 | | Prepayments on flight equipment at end of period | $4,229,152 | $3,946,422 | - The company is actively pursuing legal claims related to the Ukraine Conflict under its C&P Policy and Operator Reinsurance/Insurance Policies, with the C&P Policy claim amounting to approximately **$2.2 billion** as of March 31, 2024[123](index=123&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) [Note 27. Fair value measurements](index=36&type=section&id=Note%2027.%20Fair%20value%20measurements) - Derivative financial instruments are classified as Level 2 fair value measurements, based on dealer quotes and counterparty credit risk[139](index=139&type=chunk) Financial Assets and Liabilities Measured at Fair Value (USD in thousands) | Metric | March 31, 2024 Total | December 31, 2023 Total | | :--------------------------------------- | :------------------- | :------------------- | | Derivative assets | $153,228 | $130,614 | | Investments, at fair value | $96,708 | $84,130 | | Derivative liabilities | $16,220 | $80,840 | - Fair value measurements of flight equipment and definite-lived intangible assets on a non-recurring basis are classified as Level 3 valuations, relying on management's estimates of future cash flows and discount rates[143](index=143&type=chunk)[144](index=144&type=chunk)[147](index=147&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) AerCap's Q1 2024 financial performance, liquidity, and capital resources are analyzed, detailing revenue, expenses, portfolio, and key metrics [Special note about forward looking statements](index=40&type=section&id=Special%20note%20about%20forward%20looking%20statements) - The report includes forward-looking statements based on current beliefs and projections, subject to various risks and uncertainties, including capital availability, lessee payment ability, market demand, the Ukraine Conflict, and regulatory changes[155](index=155&type=chunk)[156](index=156&type=chunk) [Flight equipment portfolio](index=41&type=section&id=Flight%20equipment%20portfolio) - As of March 31, 2024, AerCap's portfolio comprised **3,427 aircraft, engines, and helicopters** owned, on order, or managed, with **152 aviation asset transactions** executed during the quarter[157](index=157&type=chunk) Flight Equipment Portfolio by Type (as of March 31, 2024) | Type | Number of owned assets | % Net Book Value | Number of managed assets | Number of assets on order | Total assets owned, managed and on order | | :------------------- | :--------------------- | :--------------- | :----------------------- | :------------------------ | :--------------------------------------- | | Passenger Aircraft | 1,465 | 85% | 176 | 327 | 1,968 | | Freighter Aircraft | 69 | 2% | 7 | — | 76 | | Engines | 433 | 7% | 598 | 32 | 1,063 | | Helicopters | 313 | 6% | — | 7 | 320 | | Total | 2,280 | 100% | 781 | 366 | 3,427 | [Aircraft portfolio](index=42&type=section&id=Aircraft%20portfolio) - As of March 31, 2024, AerCap owned **1,534 aircraft** with a weighted average age of **7.4 years** and a **98% utilization rate**[160](index=160&type=chunk) - The company had commitments to purchase **327 new aircraft** for delivery through 2029[160](index=160&type=chunk) Owned Aircraft Activity (Three Months Ended March 31, 2024) | Metric | Number of owned aircraft | | :--------------------------------------- | :----------------------- | | Number of owned aircraft at beginning of period | 1,556 | | Aircraft purchases | 13 | | Aircraft sold or designated for part-out | (35) | | Number of owned aircraft at end of period | 1,534 | [Critical accounting estimates](index=42&type=section&id=Critical%20accounting%20estimates) - There have been no significant changes to critical accounting estimates from those disclosed in the Annual Report on Form 20-F for the year ended December 31, 2023[162](index=162&type=chunk) [Comparative results of operations](index=43&type=section&id=Comparative%20results%20of%20operations) Key Financial Performance Changes (Q1 2024 vs. Q1 2023, USD in thousands) | Metric | Q1 2024 | Q1 2023 | Change | % Change | | :--------------------------------------- | :------ | :------ | :----- | :------- | | Basic lease rents | $1,585,631 | $1,536,663 | $48,968 | 3% | | Net gain on sale of assets | $159,580 | $99,540 | $60,040 | 60% | | Other income | $93,417 | $42,377 | $51,040 | 120% | | Depreciation and amortization | $633,478 | $610,517 | $22,961 | 4% | | Net recoveries related to Ukraine Conflict | $(22,749) | $(14,108) | $(8,641) | -61% | | Asset impairment | $2,670 | $34,335 | $(31,665) | -92% | | Interest expense | $491,515 | $436,222 | $55,293 | 13% | | Leasing expenses | $148,614 | $226,009 | $(77,395) | -34% | | Selling, general and administrative expenses | $119,292 | $110,604 | $8,688 | 8% | | Income tax expense | $(94,109) | $(65,594) | $(28,515) | -44% | | Equity in net earnings of investments accounted for under the equity method | $39,540 | $32,544 | $6,996 | 21% | - Basic lease rents increased by **$49 million** (3%), driven by asset acquisitions (**$143 million** increase) and lease transitions (**$63 million** increase), partially offset by asset sales (**$45 million** decrease) and lower PBH rent/redeliveries (**$112 million** decrease)[164](index=164&type=chunk)[166](index=166&type=chunk) - Interest expense increased by **$55 million** (13%), primarily due to a **$66 million** increase from a higher average cost of debt (**3.9%** in Q1 2024 vs. **3.3%** in Q1 2023), partially offset by an **$11 million** decrease from mark-to-market movements on interest rate caps and swaps[171](index=171&type=chunk)[172](index=172&type=chunk) [Liquidity and capital resources](index=46&type=section&id=Liquidity%20and%20capital%20resources) Consolidated Cash Flows (Q1 2024 vs. Q1 2023, USD in millions) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--------------------------------------- | :------ | :------ | | Net cash provided by operating activities | $1,376 | $1,363 | | Net cash used in investing activities | $(842) | $(1,278) | | Net cash used in financing activities | $(873) | $(580) | - As of March 31, 2024, total available liquidity was **$14 billion**, including **$1.5 billion** cash and **$11.2 billion** undrawn lines of credit, sufficient to cover approximately **1.7x** of debt maturities and contracted capital requirements for the next 12 months[184](index=184&type=chunk) - The company expects to fund contractual purchase obligations and business growth through internally generated cash flows, new debt, refinancing, and other capital-raising initiatives[184](index=184&type=chunk)[185](index=185&type=chunk) [Contractual obligations](index=47&type=section&id=Contractual%20obligations) Contractual Obligations and Payment Dates (as of March 31, 2024, USD in millions) | Obligation Type | 2024 - remaining | 2025 | 2026 | 2027 | 2028 | Thereafter | Total | | :--------------------------------------- | :--------------- | :----- | :----- | :----- | :----- | :--------- | :------ | | Unsecured debt facilities | $3,365.3 | $3,650.0 | $7,294.5 | $4,755.5 | $5,500.0 | $9,350.0 | $33,915.3 | | Secured debt facilities | $722.6 | $2,222.8 | $1,194.5 | $2,014.7 | $2,244.1 | $1,393.9 | $9,792.6 | | Subordinated debt facilities | — | — | — | — | — | $2,250.0 | $2,250.0 | | Estimated interest payments | $1,536.1 | $1,874.2 | $1,581.0 | $1,225.3 | $914.6 | $8,829.0 | $15,960.2 | | Purchase obligations | $4,706.2 | $5,768.5 | $4,028.8 | $1,556.5 | $254.6 | $162.1 | $16,476.7 | | Operating leases | $47.8 | $16.1 | $12.0 | $11.8 | $11.4 | $15.6 | $114.7 | | Total | $10,378.0 | $13,531.6 | $14,110.8 | $9,563.8 | $8,924.7 | $22,000.6 | $78,509.5 | - Purchase obligations include commitments for **327 aircraft**, **32 engines**, and **7 helicopters** through 2029, with timing based on current estimates and expected delivery delays[190](index=190&type=chunk) [Off-balance sheet arrangements](index=48&type=section&id=Off-balance%20sheet%20arrangements) - AerCap has interests in variable interest entities (VIEs), some of which are not consolidated into its financial statements, with further details provided in Note 24[193](index=193&type=chunk) [Book value per share](index=48&type=section&id=Book%20value%20per%20share) Book Value Per Share (USD) | Metric | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | :------------- | | Total AerCap Holdings N.V. shareholders' equity | $16,956 | $16,589 | $16,045 | | Ordinary shares outstanding, excluding shares of unvested restricted stock | 193,839,180 | 197,931,919 | 232,632,094 | | Book value per ordinary share outstanding, excluding shares of unvested restricted stock | $87.47 | $83.81 | $68.97 | - Book value per ordinary share increased to **$87.47** as of March 31, 2024, from **$83.81** at December 31, 2023, and **$68.97** at March 31, 2023, reflecting growth in shareholders' equity and share repurchases[194](index=194&type=chunk) [Non-GAAP measures and metrics](index=48&type=section&id=Non-GAAP%20measures%20and%20metrics) Adjusted Debt to Equity Ratio | Metric | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | Adjusted debt | $43,307 | $43,732 | | Adjusted equity | $18,081 | $17,714 | | Adjusted debt/equity ratio | 2.40 to 1 | 2.47 to 1 | Average Cost of Debt | Metric | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Interest expense excluding mark-to-market on interest rate caps and swaps, debt issuance costs, upfront fees and other impacts | $457.4 | $387.2 | | Average debt balance | $46,536 | $46,551 | | Average cost of debt | 3.9% | 3.3% | - The adjusted debt to equity ratio improved to **2.40 to 1** as of March 31, 2024, from **2.47 to 1** at December 31, 2023[197](index=197&type=chunk) [Summarized financial information of issuers and guarantors](index=50&type=section&id=Summarized%20financial%20information%20of%20issuers%20and%20guarantors) - The AGAT/AICDC Notes are jointly and severally and fully and unconditionally guaranteed by AerCap Holdings N.V. and certain subsidiaries (the "Obligor Group")[200](index=200&type=chunk) Summarized Combined Financial Information of Obligor Group (USD in millions) | Metric | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | Total assets | $46,374 | $46,858 | | Total liabilities | $41,744 | $41,945 | | Debt | $35,456 | $35,863 | | Metric | Three Months Ended March 31, 2024 | | :--------------------------------------- | :-------------------------------- | | Total revenues and other income | $892 | | Total expenses | $687 | | Net income | $178 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) AerCap's market risk exposures, including interest rate and foreign currency, and management strategies using derivatives and addressing inflation [Interest rate risk](index=52&type=section&id=Interest%20rate%20risk) - AerCap manages interest rate exposure, arising from mismatches between floating rate debt and fixed rate leases, primarily through interest rate caps and swaps using a cash flow-based risk management model[214](index=214&type=chunk) Derivative Financial Instruments Sensitive to Interest Rates (as of March 31, 2024, USD in millions) | Instrument | 2024 - remaining | 2025 | 2026 | 2027 | 2028 | Thereafter | Fair value | | :------------------- | :--------------- | :----- | :----- | :----- | :----- | :--------- | :--------- | | Interest rate caps (Avg. notional) | $1,871.3 | $1,129.2 | $469.3 | $35.2 | — | — | $80.9 | | Weighted average strike rate | 1.6% | 2.2% | 2.4% | 2.3% | — | — | | | Interest rate swaps (Avg. notional) | $4,630.0 | $4,605.0 | $3,442.5 | $2,582.5 | $1,004.2 | — | $55.6 | | Weighted average pay rate | 3.6% | 3.6% | 3.9% | 4.0% | 4.1% | — | | [Foreign currency risk and foreign operations](index=53&type=section&id=Foreign%20currency%20risk%20and%20foreign%20operations) - AerCap's functional currency is the U.S. dollar, and substantially all revenues and aircraft purchase agreements are denominated in USD, limiting material foreign currency transaction gains and losses[218](index=218&type=chunk) - A change in foreign exchange rates is not expected to have a material impact on results of operations or cash flows due to the predominant use of U.S. dollars in revenues and expenses[218](index=218&type=chunk) [Inflation](index=53&type=section&id=Inflation) - High inflation rates could adversely affect AerCap by increasing operational costs and decreasing the value of fixed-rate lease payments, with potential lags in adjusting lease rates[219](index=219&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) Detailed legal proceedings, including Ukraine Conflict cases, are discussed in Note 26 to the financial statements - For details on legal proceedings, refer to "Part I. Financial Information—Item 1. Financial Statements (Unaudited)—Note 26—Commitments and contingencies" in this report[221](index=221&type=chunk) [Item 1A. Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the Annual Report on Form 20-F for December 31, 2023 - There have been no material changes in risk factors since those reported in the Annual Report on Form 20-F for the year ended December 31, 2023[222](index=222&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details on the company's share repurchase activities for Q1 2024, including shares purchased and average price paid Ordinary Share Repurchases (Three Months Ended March 31, 2024) | Month | Number of ordinary shares purchased | Average price paid per ordinary share (USD) | Total number of ordinary shares purchased as part of publicly announced program | | :------------ | :-------------------------------- | :------------------------------------------ | :---------------------------------------------------------------- | | January 2024 | 1,317,219 | $75.16 | 1,317,219 | | February 2024 | 1,709,291 | $77.52 | 1,709,291 | | March 2024 | 1,284,967 | $81.18 | 1,284,967 | | Total | 4,311,477 | $77.89 | 4,311,477 | - As of March 31, 2024, the maximum dollar value of ordinary shares that may yet be purchased under the program was **$446.6 million**[223](index=223&type=chunk) [Item 3. Defaults Upon Senior Securities](index=54&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities[224](index=224&type=chunk) [Item 4. Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable to AerCap Holdings N.V.[225](index=225&type=chunk) [Item 5. Other Information](index=54&type=section&id=Item%205.%20Other%20Information) No other information is reported under this item - No other information is reported under this item[226](index=226&type=chunk) [Item 6. Exhibits](index=54&type=section&id=Item%206.%20Exhibits) No exhibits are reported under this item - No exhibits are reported under this item[227](index=227&type=chunk)

AerCap Holdings NV (NYSE:AER) Q1 2024 Earnings Conference Call May 1, 2024 8:30 AM ET Company Participants Joseph McGinely - Head of Investor Relations Aengus Kelly - Chief Executive Officer Peter Juhas - Chief Financial Officer Conference Call Participants Terry Ma - Barclays Jamie Baker - JP Morgan Hillary Cacanando - Deutsche Bank Helane Becker - TD Cowan Chris Stathoulopoulos - Susquehanna International Group Operator Good day and welcome to the AerCap Holdings NV Q1 2024 Financial Results. Today’s conf ...

Core Viewpoint - AerCap reported quarterly earnings of $3.29 per share, exceeding the Zacks Consensus Estimate of $2.31 per share, and showing an increase from $2.34 per share a year ago, representing an earnings surprise of 42.42% [1] Financial Performance - The company posted revenues of $2.02 billion for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 6.04%, compared to $1.87 billion in the same quarter last year [1] - Over the last four quarters, AerCap has exceeded consensus EPS estimates four times and topped consensus revenue estimates two times [1] Stock Performance - AerCap shares have increased by approximately 13.7% since the beginning of the year, outperforming the S&P 500's gain of 5.6% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.40 on revenues of $1.9 billion, and for the current fiscal year, it is $9.70 on revenues of $7.66 billion [4] - The estimate revisions trend for AerCap is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Industry Context - The Financial - Leasing Companies industry is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [5] - Another company in the same industry, Upbound Group, is expected to report quarterly earnings of $0.77 per share, reflecting a year-over-year decline of 7.2% [5]

Net income for the first quarter of 2024 was $604 million, or $3.02 per share. Adjusted net income for the first quarter of 2024 was $658 million, or $3.29 per share. Raising full year 2024 adjusted earnings per share guidance to approximately $9.20. DUBLIN, May 1, 2024 /PRNewswire/ -- AerCap Holdings N.V. (NYSE: AER), the industry leader across all areas of aviation leasing, today reported strong financial results for the first quarter of 2024. "AerCap continued its strong performance during the first qu ...

Core Insights - AerCap Holdings N.V. published its seventh annual Environmental, Social, and Governance (ESG) Report for the year ended December 31, 2023, highlighting its commitment to sustainable business growth [1][2] Group 1: ESG Ratings and Fleet Modernization - AerCap's ESG ratings have improved, with MSCI upgrading it to 'AA' in September 2023 and Morningstar Sustainalytics to 'Low Risk' in April 2024 [1] - The company has invested approximately $50 billion in new technology aircraft since 2014, ensuring its fleet is composed of around 70% new technology aircraft by net book value and 80% new technology engines as of December 31, 2023 [1][2] Group 2: Emissions and Diversity Initiatives - AerCap achieved a 15% reduction in indirect Scope 3 emissions intensity over the last decade, despite doubling its fleet size during this period [1] - The company made progress on its Diversity, Equity, Inclusion, and Belonging (DEIB) framework, conducting focus groups and training sessions throughout 2023 [1] Group 3: Community Engagement and Industry Collaboration - AerCap donated over $800,000 to charitable and social causes in 2023, demonstrating its commitment to community engagement [1] - The company engaged with regulatory authorities and the aviation industry on policy and decarbonization matters, enhancing its situational awareness [1][2]

Investment Overview - George Soros' hedge fund is making significant investments in stocks, with a notable focus on small-cap stocks and specific companies like Splunk, AerCap Holdings, and Alphabet [1][2][6] Splunk Acquisition - Soros Fund Management held 1.6 million shares of Splunk valued at $240 million, representing over 4.5% of the total portfolio, before Cisco acquired the company for $157 per share, yielding a profit from an average buy price of $141 [1] Small-Cap Stocks - Soros owns 1.2 million shares of the iShares Russell 2000 ETF, which tracks the 2,000 smallest stocks in the Russell 3000 index, indicating a strategic bet on the resurgence of small-cap stocks [2] - Historically, small-cap stocks have outperformed mid and large-cap stocks 60% of the time over a 75-year study, and the Russell 2000 has recently outperformed the S&P 500 [2] Notable Holdings in iShares Russell 2000 ETF - The largest stock in the Russell 2000 index is Super Micro Computer with a market cap of $55.5 billion, followed by Microstrategy at $24 billion, contributing to the ETF's strong performance [3] AerCap Holdings Performance - AerCap Holdings has a market valuation of $18 billion, with shares up 18% year-to-date and 57% over the past year [4] - The company reported fourth-quarter revenue of $1.9 billion, slightly below expectations, but earnings per share of $3.11 exceeded projections [5] - Soros Fund Management holds nearly 2.5 million shares of AerCap, valued at $183.5 million, representing a 40% gain on his holdings [5] Alphabet's Position - Soros holds 1.2 million shares of Alphabet, valued at $170.3 million, constituting a 3.2% position in the fund, despite the stock being down 13% from the average buy price [6] - Alphabet maintains a 91% market share in search, and despite recent advertising revenue disappointments, it is expected to benefit from increased ad spending in an election year [7] - Google Cloud is growing rapidly, outpacing competitors like Amazon AWS and Microsoft Azure, indicating potential for future growth [7]

DUBLIN, April 4, 2024 /PRNewswire/ -- AerCap Holdings N.V. ("AerCap" or the "Company") (NYSE: AER) today announced it will host a conference call and webcast for investors and analysts on Wednesday, May 1, 2024 at 8:30 a.m. Eastern Time to review its first quarter 2024 financial results. AerCap's first quarter 2024 earnings press release will be released before financial markets open in the United States on May 1, 2024. A copy of the press release will be posted on the "Investors" section of AerCap's websit ...

Core Insights - George Soros's investment strategies continue to attract attention, with his Soros Fund Management managing a portfolio valued at over $7.6 billion and holding 209 positions [1] Group 1: Recent Trades - Soros Fund Management made significant trades in Q4, including notable buys and sells, reflecting strategic investment decisions [1] - The fund added over one million shares of Splunk (SPLK), which reported a GAAP EPS of $2.28 and revenues of $1.49 billion, a 19.2% YOY increase [2] - Soros sold his entire stake in Arm Holdings (ARM), consisting of 325,000 shares, after the stock surged 93% following strong earnings [3][4] - The fund reduced its stake in Alphabet (GOOG, GOOGL) by selling 185,000 shares, influenced by valuation concerns and potential brand risks associated with the Gemini AI chatbot [5] - Soros increased his position in Novo Nordisk (NVO) by adding 29,000 shares, focusing on the anticipated FDA approval for its weight loss drug, Wegovy [6][7] - The fund initiated a sizeable position in AerCap Holdings (AER), expanding its investment by approximately 612,000 shares, reflecting a strategic move towards fleet modernization [8][9] - Soros increased his stake in Jacobs Solutions (J) by adding 172,400 shares, highlighting the company's strong financial performance and operational efficiency [10][11] - The fund sold over 610,000 shares of CRH (CRH) while retaining over 1.4 million shares, likely due to concerns over the company's valuation after recent outperformance [12]

Financial Data and Key Metrics Changes - AerCap reported a GAAP net income of $3.1 billion for 2023, with an earnings per share (EPS) of $13.78, and an adjusted net income of $2.4 billion with an adjusted EPS of $10.73 [5][20] - The company generated a record operating cash flow of $5.3 billion, marking a significant increase in cash generation capabilities [5][16] - The book value per share increased by 25% to $83.81 by the end of 2023 [19][25] Business Line Data and Key Metrics Changes - Basic lease rents for Q4 2023 were $1.576 billion, reflecting strong cash collections and power-by-the-hour arrangements [21] - Maintenance revenues for Q4 were $142 million, which would have been $167 million without amortization [21] - The net gain on sale of assets for Q4 was $94 million, with a total of nearly $2.8 billion in asset sales for the full year, generating a total gain of $490 million [22][26] Market Data and Key Metrics Changes - The global supply-demand imbalance for aircraft is expected to persist, driven by production cuts from Boeing and Airbus due to past events like the grounding of the 737 MAX and COVID-19 [6][8] - The company noted that production rates remain approximately 20% below 2018 levels, contributing to sustained demand for aviation assets [8][12] Company Strategy and Development Direction - AerCap plans to continue capitalizing on favorable supply-demand dynamics, with a focus on increasing lease rates and enhancing operating cash flows [6][12] - The company announced a new $500 million share repurchase program, reflecting confidence in its outlook for 2024 and beyond [5][19] - AerCap aims to maximize shareholder value through prudent capital deployment and maintaining a strong risk profile [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the business, citing robust demand for aviation assets and a favorable market environment [5][6] - The company anticipates adjusted EPS for 2024 to be in the range of $7.50 to $8.50, excluding any gains on sale [26][30] - Management highlighted the importance of addressing supply chain issues and the ongoing challenges in the MRO network, particularly for engines [63][64] Other Important Information - AerCap's leverage ratio at the end of Q4 was 2.47 times, indicating a reduction in leverage despite significant capital expenditures and share repurchases [24] - The company maintains a strong liquidity position with total sources of liquidity around $19 billion [23] Q&A Session Summary Question: Can you address the tightening of net spread less depreciation in Q4? - Management noted that the decrease was due to early refinancing of bond maturities and accelerated depreciation on older aircraft [32] Question: Why does the 2024 guidance appear conservative compared to 2023 results? - Management explained that the guidance excludes gains on sale and includes estimates for default costs and higher interest rates, while still expecting to outperform [34] Question: Are share buybacks included in the guidance? - Management confirmed that some share repurchases are factored into projections, depending on earnings and capital availability [37] Question: What were the lease extension rates for narrow and wide bodies? - Management indicated that nearly all wide-body leases were extended, with strong demand for narrow bodies as well [38] Question: How do lease extensions and asset sales impact net spread? - Management acknowledged that selling older assets can reduce net spread but emphasized the focus on maximizing EPS and shareholder value [41][43] Question: What is the average recovery percentage from Russian aircraft? - Management confirmed that the average recovery is around 70%, with ongoing insurance claims still in place [45] Question: Update on cargo conversion program and revenue opportunity? - Management stated that 777 conversions are expected to roll out in 2024, but no revenue from these conversions is included in the current guidance [48] Question: What is the mix of assets in the $2 billion sales guide? - Management indicated that the asset mix would focus on older assets, but specific gain on sale guidance was not provided [50] Question: How have lease rates trended recently? - Management noted a slight upward trend in lease rates, despite a fall in interest rates [57]