AerCap Q2 Earnings Up 217% on ILFC Consolidation

AerCap Holdings announced its adjusted net income was $212.4 million for Q2/14 up from $67.1 million or 217% from Q2/13. AerCap noted the results of the acquisition of ILFC were consolidated into AerCap’s income statement and cash flow statement for Q2/14.

Lease revenue for Q2/14 was $763.3 million, compared with $229.8 million for the same period in 2013.

Second quarter highlights included:

  • For the first six months ended June 30, 2014, AerCap showed $763.7 million in flight equipment purchases, down from $1,267.9 million during the same six-month period in 2013.
  • The adjusted debt to equity ratio increased to 3.7 to 1 at June 30, 2014, from 2.6 to 1 for the same period in 2013, reflecting the acquisition of ILFC.
  • Executed $3 billion of financing transactions, including the previously announced private placement of $2.6 billion of notes for the ILFC acquisition related take-out financing.
  • During the second quarter of 2014, AerCap purchased ten aircraft with a total value of $0.7 billion.
  • The company’s fleet utilization rate was 98.8% for the second quarter of 2014. The average age of the owned fleet as of June 30, 2014 was 7.6 years and the average remaining contracted lease term was 5.5 years.
  • Completed the sale of 100% of the class A common shares in Genesis Funding Limited, an aircraft securitization vehicle with a portfolio of 37 aircraft with an average age of 13 years valued at approximately $750 million.
  • Subsequent to the second quarter of 2014, AerCap exercised an option to purchase 50 A320neo family aircraft from Airbus.
  • Net spread for the second quarter was a 5-year high of 10.1%.
  • As of June 30, 2014, AerCap had committed to purchase 350 aircraft with scheduled delivery dates up to 2022. Over 90% of our committed aircraft purchases delivering 2014 through December 2016 and approximately 50% of our committed aircraft purchases delivering 2014 through 2022 are placed, either under lease contract or a letter of intent.
  • AerCap executed 122 aircraft transactions during the second quarter of 2014.
  • Targeted aircraft sales of ~$1 billion per year on average are ahead of plan: ~$2 billion completed since the ILFC transaction announcement in December 2013.

Aengus Kelly, CEO of AerCap, commented: “We are very pleased with our financial results and the ongoing ILFC integration process, as evidenced by the numbers. Our net spread of 10% is running at a 5-year high with fleet utilization of approximately 99%. Further, we have placed 50% of our committed aircraft purchases through 2022. We have also far exceeded our aircraft sales target by $1 billion, resulting in a robust liquidity profile. Finally, the ILFC asset migration to our Irish operations is ahead of schedule. From these figures, I am extremely proud of the entire AerCap/ILFC team who are working diligently to integrate the combined operations which we anticipate will be completed in 2015.”

To view the full AerCap Holdings news release, click here.

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