The world’s largest jet leasing company, Dublin-based AerCap, reported strong profitability and cash generation in the second quarter on a backdrop of a post-pandemic air travel recovery.
Revenue rose 36% to $1.67 billion, while net income was $340 million, compared to $250 million in the second quarter a year ago.
Adjusted net income for the second quarter of 2022 was $464 million. Ground rent rose to $1.46 billion in the quarter from $871 million as the company benefited from its acquisition of competitor Gecas.
AerCap told investors that of the 190 countries tracking travel behavior, more than half exceeded 80 percent of 2019 traffic levels in June 2022.
The company has nearly 3,600 aircraft, engines and helicopters in its portfolio.
Chief Executive Gus Kelly said the current delays in aircraft production will also provide a boost to jet leasing companies for years to come.
“AerCap delivered strong results in the second quarter, with a significant increase in activity across all of our businesses,” said Mr. Kelly.
“The ongoing recovery in air traffic continued to strengthen in all major regions, reflected in strong cash earnings and higher utilization of our fleet during the quarter,” he added.
“Strong passenger demand, coupled with supply constraints across the industry, is creating a favorable leasing environment,” said Mr. Kelly.
According to Kelly, production problems caused by supply chain problems will likely impact aircraft manufacturers for years to come.
“And what are airlines doing in the meantime?” said Mr. Kelly on a call with analysts. “They turn to the leasing companies, where the security of supply is higher.”
AerCap said air traffic in North America is currently back to 82 percent of 2019 levels and in Europe at the same level. In Asia Pacific, excluding China, it is 73 percent and in China itself 74 percent.
AerCap is among aircraft rental companies whose jets were confiscated by the Russian government after the country invaded Ukraine.
Before the invasion of Ukraine and the sanctions that followed, AerCap had leased 135 of its own aircraft and 14 of its own engines to Russian airlines.
AerCap then filed a $3.5 billion insurance claim relating to its jets seized in Russia.
That Irish Independent announced in May that Irish units of AerCap had filed a lawsuit in London against a Dutch subsidiary of Russian air cargo giant Volga-Dnepr. It is believed to be one of the first cases brought by an aircraft rental company against a Russian customer airline after the invasion.
https://www.independent.ie/business/strong-rebound-in-air-travel-boosts-results-at-irish-jet-lessor-aercap-41906403.html Strong recovery in air travel boosts results for Irish jet lessor AerCap