AerCap reports $3.1bn net income for 2023
Returned $2.6 billion to shareholders in 2023, company announces new $500 million share repurchase programme
Photos Credit: AerCap
AerCap Holdings, the industry leader across all areas of aviation leasing, reported a net income of $3.1 billion for 2023 and an adjusted net income of $2.4 billion after net recoveries related to the Ukraine conflict ($1.3 billion).
Total revenue and other income increased eight percent to $7.6 billion, says an official release.
Aengus Kelly, Chief Executive Officer, AerCap
"We are pleased to announce another record quarter for AerCap, completing a record year for our company across many fronts," says Aengus Kelly, Chief Executive Officer, AerCap. "These results reflect the continued strong operating environment across our businesses and the positive momentum for leasing and sales of aircraft, engines and helicopters. In addition, this quarter we collected over $600 million of insurance settlements for a total of $1.3 billion collected during 2023. This strong performance is a testament to the talent, dedication and commitment of the entire AerCap team and our industry leadership. Given the strong tailwinds that we see for demand for aircraft, engines and helicopters, we are confident about the outlook for AerCap in 2024 and beyond."
Total cash and cash equivalent increased four percent to $1.8 billion for 2023. "As of December 31, 2023, AerCap's portfolio consisted of 3,452 aircraft, engines and helicopters that were owned, on order or managed. The average age of the company's owned aircraft fleet as of December 31, 2023 was 7.3 years (4.5 years for new technology aircraft, 14.2 years for current technology aircraft) and the average remaining contractual lease term was 7.3 years."
Commercial aircraft deliveries in 2023 remained behind 2015 levels while increasing engine reliability issues are reflected in increased storage rates for younger aircraft, the release added.
The board has approved a new share repurchase programme authorising total repurchases of up to $500 million of ordinary shares through September 30, 2024.
2024 outlook
AerCap is expecting total revenue of $7.2 billion in 2024 and adjusted net income of $1.6 billion.
