AerCap 2017 results and new share repurchase programme

victoria@aviationnews-online.com
By victoria@aviationnews-online.com February 15, 2018 16:06

AerCap 2017 results and new share repurchase programme

AerCap has announced net income of $266.3 million for the fourth quarter of 2017, compared with $364.7 million for the same period in 2016. The lessor earned $1,076.2 million for the full year 2017, compared with $1,046.6 million for 2016. Diluted earnings per share of $1.67 for the fourth quarter of 2017 and $6.43 for the full year 2017.

During 2017, AerCap executed 402 aircraft transactions, including 119 widebody transactions. It has reported a 99.1% fleet utilization rate for the full year 2017. AerCap’s current owned fleet is 6.8 years average age and has 6.9 years average remaining lease term.

The lessor purchased $5.3 billion of aircraft in 2017 and sold $2.4 billion worth of aircraft. Also during the year, AerCap ordered 30 Boeing 787 aircraft and 50 Airbus A320neo Family aircraft in 2017.

AerCap repurchased 23.7 million shares in 2017 for $1.1 billion and has authorised a new $200 million share repurchase programme, which will run through June 30, 2018.

Aengus Kelly, CEO of AerCap, commented: “I am very pleased to report another strong set of financial results for 2017 which is due to the hard work and relentless focus on execution of our team. During the year, we generated earnings per share of $6.43 and net income of $1.1 billion. Our platform also purchased a record $5.3 billion of new aircraft in 2017, and sold approximately $2.4 billion of mid-life assets, as part of our transition to new technology aircraft.”

Basic lease rents were $1,035.3 million for the fourth quarter of 2017, compared with $1,061.8 million for the same period in 2016. The decrease was primarily due to the sale of mid-life and older aircraft during 2016 and 2017.

Maintenance rents and other receipts were $162.6 million for the fourth quarter of 2017, compared with $159.1 million for the same period in 2016.

Net gain on sale of assets for the fourth quarter of 2017 was $48.5 million, relating to 27 aircraft sold and two aircraft reclassified to finance leases, compared with $58.7 million for the same period in 2016, relating to 37 aircraft sold and three aircraft reclassified to finance leases. The decrease was primarily due to the composition of asset sales.

Other income for the fourth quarter of 2017 was $16.6 million, compared with $89.0 million for the same period in 2016. Other income for the fourth quarter of 2016 included income from lease terminations and a gain related to the repayment of a note receivable earlier than expected.

Asset impairment charges were $10.4 million for the fourth quarter of 2017, compared with $11.4 million recorded for the same period in 2016. Asset impairment recorded in the fourth quarter of 2017 primarily related to lease terminations and was more than offset by maintenance revenue recognized as a result of these lease terminations. Leasing expenses were $141.2 million for the fourth quarter of 2017, compared with $143.3 million for the same period in 2016.

victoria@aviationnews-online.com
By victoria@aviationnews-online.com February 15, 2018 16:06