AerCap Holdings’ first quarter indicates continued strong demand for air travel
AerCap Holdings is the world’s largest independent aircraft leasing company, and its first quarter results for the year demonstrate a strong underlying demand for its service. The company reported a net income of $265.4 million for the three months just passed, and posted diluted earnings per share of $1.72.
AerCap Holdings’ share price has risen by 5% in as many days
Source: Yahoo Finance
The company said that it had executed 114 aircraft transactions throughout the quarter, including “28 widebody transactions”. This breaks down into the following: the company signed lease agreements for 83 aircraft, bought 7 aircraft, and sold 24.
The company also said that approximately 95% of new aircraft deliveries through to 2019 would be on a lease basis, and 80% through to 2020 (obviously, there is scope for these numbers to change). The companies average remaining lease term is 6.9 years. The company also said that it managed to utilize 98.3% of its fleet during the first quarter.
AerCap’s CEO, Aengus Kelly, said: “I am pleased to report that the AerCap platform delivered another quarter of strong operating and financial results, with earnings per share of $1.72 and net income of $265 million. Our high level of lease placement activity reflected robust demand for our aircraft, and we continued to deploy excess capital to create value for our shareholders.”
Dominion holds AerCap Holdings in its Global Trends Managed Fund.
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