Irish-based plane lessor AerCap sees earnings rebound   

Lease rents were hit by the loss of revenue from Russian aircraft but rising demand pushed AerCap's revenues up 36% to $1.67bn

Aengus Kelly, chief executive at AerCap, said the leasing environment was favourable right now due to strong demand and supply constraints. File picture

A strengthening rebound in air travel “across all major regions” boosted second-quarter revenue at AerCap, as the world’s top aircraft lessor predicted that supply chain issues for plane makers would support leasing demand for years to come.

Ireland-based AerCap, in which General Electric has a large stake, said lease rents were negatively impacted by the loss of revenue from Russian aircraft in the quarter but that recovery in passenger demand led to higher overall levels of cash collection and greater utilisation of its fleet.

It reported a 36% increase in revenue to $1.67bn (€1.61bn), just above the $1.65bn forecast by analysts. CEO Aengus Kelly said: 

The strength in passenger demand, coupled with supply constraints across the industry, is resulting in a favourable leasing environment. 

In a presentation for investors, AerCap said it believed the supply chain issues — from a lack of spare engine capacity to lengthening maintenance, repair and overhaul backlogs — would continue to constrain production over the next few years.

Lessors, who control more than half the world’s aircraft fleet, were hit this year by the confiscation of hundreds of planes in Russia after Western sanctions forced them to scrap contracts with Russian airlines.

AerCap booked a pretax charge of $2.7bn in the previous quarter as it recognised a loss on its more than 100 jets that remain stranded in Russia.

It submitted a $3.5bn insurance claim in March.

Reuters