Irish-based aircraft-leasing giant AerCap beats earnings target

Chief executive says post-lockdown demand and significant delays by major aircraft manufacturers will push lease rates up

AerCap, the world's largest aircraft-leasing firm, has announced a €473m share buyback.

AerCap, the world's largest aircraft-leasing firm, beat its full-year earnings target and announced a $500m (€473m) share buyback as it forecast upward pressure on lease rates for the foreseeable future.

The Irish-based leasing firm, which has a portfolio of 3,532 aircraft, engines and helicopters, reported adjusted earnings of $9.01 per share for 2022, well ahead of a November company forecast. 

The New York-listed shares of AerCap, the largest player in a leasing industry that buys more than half of Airbus and Boeing's passenger aircraft, rose in the session. 

Chief executive Aengus Kelly said a combination of strong post-lockdown demand across the globe and significant delays by major aircraft manufacturers would push aircraft lease rates up for the foreseeable future.

We believe that the issues affecting aircraft production are likely to persist for several years, resulting in strong demand and upward pressure on lease rates and values for the foreseeable future.

Passenger air traffic levels in Europe, Asia, and the Americas are all running at over 80% of pre-pandemic levels, with China set to boost global demand further over the coming 18 months, he said. 

Chief financial officer Peter Juhas declined to comment on how many more share buybacks the company might hold this year.

• Reuters