Group 1 - BOC Aviation (BOCA) delivered 13 aircraft in 2Q25, maintaining flat year-over-year (YoY) and increasing two quarter-over-quarter (QoQ), with a total of 24 aircraft delivered in 1H25, which is an increase of six YoY and four half-over-half (HoH) [1] - The firm’s self-owned fleet grew to 441 aircraft by the end of 1H25, up 12 YoY and six HoH, while the order book increased to 351, reflecting a growth of 132 YoY and 119 HoH [1] - Aircraft lease rates are trending upward, with the Airbus A320NEO lease rate rising approximately 6% YoY as of February 2025, supporting high-priced contract execution and potentially lifting gross lease rental yields [2] Group 2 - The firm sold 14 self-owned aircraft in 2Q25, an increase of three YoY and 10 QoQ, with a total of 18 self-owned aircraft sold in 1H25, also up three YoY [3] - The market value of the firm’s self-owned fleet exceeded book value by 15% as of the end of 2024, indicating that steady aircraft disposals could improve fleet quality and realize asset premiums [3] Group 3 - The firm has a higher exposure to floating-rate liabilities (27% at end-2024), making it more sensitive to interest rate cuts compared to leasing peers, with historical share price movements closely tied to US Treasury yields and interest rate cut expectations [5] - In previous periods of rising interest rate cut expectations, the firm’s share price increased by 18.7% from its trough to peak in November 2023 and climbed 26.2% by July 2024, suggesting potential short-term catalysts for share price [5] Group 4 - Improved aircraft deliveries are expected to drive up gross lease rental yields, while overseas interest rate cuts may lower financing costs, leading to a steady recovery in the firm’s return on equity (ROE) [6] - The firm’s historical average valuation has shown a strong correlation with its ROE, indicating that ROE expansion could provide room for a steady rise in valuation [6]

Core Viewpoint - AerCap Holdings N.V. has reported significant business transactions in Q2 2025, highlighting its leadership in aviation leasing and robust operational activities [1]. Business Transactions - Signed 71 lease agreements, which include 8 widebody aircraft, 32 narrowbody aircraft, 13 engines, and 18 helicopters [3]. - Completed 21 purchases for 11 aircraft, including 3 Airbus A320neo Family aircraft, 5 Boeing 737 MAX aircraft, and 3 Embraer E195-E2s, along with 5 engines and 5 helicopters [3]. - Executed 24 sale transactions for 14 aircraft, including 9 Airbus A320 Family aircraft and 1 Boeing 767-300ER, along with 6 engines and 4 helicopters [3]. - Awarded approximately $1 billion from war risks insurers for assets lost in Russia in 2022 [3]. - Signed financing transactions totaling approximately $2.9 billion [3]. - Repurchased approximately 4.7 million shares at an average price of $94.03 per share, totaling around $445 million [3]. - Declared a quarterly cash dividend of $0.27 per share on ordinary shares [3]. Company Overview - AerCap is recognized as the global leader in aviation leasing, serving around 300 customers worldwide with comprehensive fleet solutions [1]. - The company is listed on the New York Stock Exchange and has a strong presence in multiple global locations including Dublin, Miami, and Singapore [1].

Core Viewpoint - The NTSB has issued an urgent safety recommendation to modify Boeing 737 Max jet engines to prevent smoke from entering the cockpit or cabin following incidents involving bird strikes on Southwest Airlines flights [1][2]. Group 1: Incident Details - Two incidents involving Southwest Airlines planes with CFM International LEAP-1B engines occurred in 2023, where bird strikes led to smoke entering the cockpit and cabin [1][6]. - In December 2023, a Southwest Airlines plane experienced "acrid white smoke" filling the cockpit after a bird strike during takeoff from New Orleans, making it difficult for the captain to see the instrument panel [3]. - A similar incident occurred nine months earlier on a flight from Havana, Cuba, where smoke filled the cabin after birds were ingested into the engine shortly after takeoff [6]. Group 2: Safety Recommendations - The NTSB has recommended evaluating the potential for similar issues with CFM's LEAP-1A and LEAP-1C engines, which are used on Airbus A320neo planes and C919 jets [8]. - The FAA and Boeing have agreed with the NTSB recommendations and have warned airlines and pilots about the issue [9][11]. Group 3: Company Responses - Boeing and CFM are reportedly working on a software design update to address the safety concerns raised by the NTSB [13].