Shares of AerCap (AER) have been strong performers lately, with the stock up 0.9% over the past month. The stock hit a new 52-week high of $94.63 in the previous session. AerCap has gained 25.6% since the start of the year compared to the 7.6% move for the Zacks Finance sector and the 16.8% return for the Zacks Financial - Leasing Companies industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of th ...

AerCap (AER) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a cha ...

DUBLIN, June 12, 2024 /PRNewswire/ -- AerCap Holdings N.V. ("AerCap" or the "Company") (NYSE: AER) today announced it has signed lease agreements for four 737-800 Boeing Converted Freighter (BCF) aircraft with JD Airlines, the cargo airline of JD Logistics (also known as Jingdong Logistics), which are scheduled for delivery in 2024. The aircraft will be operated on behalf of JD Logistics, the subsidiary of JD.com, a leading supply chain-based technology and service provider in China. The aircraft will be ba ...

Have you been paying attention to shares of AerCap (AER) ? Shares have been on the move with the stock up 5.8% over the past month. The stock hit a new 52-week high of $93.71 in the previous session. AerCap has gained 24.7% since the start of the year compared to the 4.1% move for the Zacks Finance sector and the 16.8% return for the Zacks Financial - Leasing Companies industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnin ...

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of a trend in short-term investing, highlighting that a solid price trend, supported by strong fundamentals, is crucial for successful trades [1]. Group 1: Stock Performance - AerCap (AER) has shown a solid price increase of 19.1% over the past 12 weeks, indicating investor confidence in its potential upside [2]. - AER has maintained a price increase of 6.6% over the last four weeks, suggesting that the upward trend is still intact [2]. - The stock is currently trading at 97.2% of its 52-week high-low range, indicating a potential breakout [2]. Group 2: Fundamental Strength - AER holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3]. - The Zacks Rank system has a strong track record, with Rank 1 stocks averaging an annual return of +25% since 1988 [3]. - The Average Broker Recommendation for AER is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [3]. Group 3: Investment Strategy - The article suggests that AER is a strong candidate for trend investing, and there are other stocks that also meet the criteria of the "Recent Price Strength" screen [4]. - The Zacks Premium Screens offer over 45 strategically created options to help investors find winning stock picks [4]. - The effectiveness of stock-picking strategies can be backtested using the Zacks Research Wizard, which includes successful strategies [4].

Order for 150 new CFM LEAP engines valued at approximately $3 billion. New $500 million share repurchase authorization. Initiating quarterly common stock dividend of $0.25 per share. DUBLIN, May 8, 2024 /PRNewswire/ -- AerCap Holdings N.V. ("AerCap") (NYSE: AER) today will host its 2024 Capital Markets Day in New York, beginning at 9:00 am EDT. At the event, which may be viewed virtually here, AerCap's CEO Aengus Kelly will be joined by other members of the senior leadership team to discuss the company's ...

DUBLIN, May 1, 2024 /PRNewswire/ -- AerCap Holdings N.V. ("AerCap" or the "Company") (NYSE: AER) today announced it has filed an interim financial report including its unaudited condensed consolidated financial statements and notes for the first quarter ended March 31, 2024, with the U.S. Securities and Exchange Commission (the "SEC"). AerCap's Form 6-K can be accessed on the "Investors" section of the Company's website at www.aercap.com, as well as on the SEC's website at www.sec.gov. About AerCap AerCap ...

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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 ...