AerCap Reports Record US$1bn Adjusted Quarterly Profit

DUBLIN — AerCap reported record third-quarter adjusted net income of US$1.009bn, or US$6.56 per share, on October 28, and raised its full-year earnings outlook.

The lessor's third-quarter results showed net income under U.S. generally accepted accounting principles of US$949m, or US$6.17 per share. Its adjusted measure excludes specified acquisition-accounting charges and Ukraine-related recoveries after tax; asset-sale gains remain included.

AerCap bought 32 aircraft during the quarter. It recorded US$353m in gains from selling assets for US$1.1bn, while basic lease rents were nearly unchanged at US$1.698bn against US$1.690bn a year earlier.

What Changed in the Outlook

Full-year adjusted earnings guidance rose to approximately US$20.70 per share, excluding fourth-quarter sale gains. In July, AerCap forecast approximately US$16.80 per share, excluding any second-half sale gains.

The October forecast includes third-quarter asset-sale gains that the July outlook excluded. Both forecasts exclude fourth-quarter gains.

Aircraft Supply and Future Deliveries

Chief Executive Officer Aengus Kelly said higher fuel prices were affecting airline profitability, while supply and demand remained favorable for AerCap.

The lessor is also securing aircraft for later delivery. Its March agreement for 100 Airbus A320neo-family aircraft, including exercised options, schedules deliveries from 2028 through 2034. As Airways reported when the firm order was announced, the total comprises 23 A320neo and 77 A321neo aircraft.