AerCap Holdings N.V., a global leader in aviation leasing, has reported strong financial results for the fourth quarter and full year ending December 31, 2024, showcasing record-breaking earnings and robust operational performance.
For the fourth quarter of 2024, AerCap posted a net income of US$671 million, while its full-year net income stood at US$2.1 billion. Adjusted net income for the quarter was US$624 million, with the full-year adjusted net income reaching US$2.3 billion. The company also announced a new US$1 billion share repurchase program and an increase in its quarterly dividend to US$0.27 per share.
AerCap CEO Aengus Kelly expressed optimism about the company’s trajectory, citing strong demand for leased aircraft, engines, and helicopters.
“We are pleased to announce another strong quarter for AerCap, completing a year of record operating cash flow and earnings per share. These results reflect a continued positive operating environment across our businesses and high demand for leased aircraft, engines, and helicopters. We also see this reflected in our asset sales, where we sold US$869 million of assets in the fourth quarter at a record gain on sale of US$260 million,” said Kelly.
Key financial highlights include a return on equity of 16% and an adjusted return on equity of 15% for the fourth quarter. The company reported cash flow from operating activities of US$1.3 billion for the fourth quarter and US$5.4 billion for the full year. Additionally, AerCap’s unlevered gain on sale margin stood at 43% for assets sold in the fourth quarter, translating to 2.6 times book value on an equity basis.
AerCap made significant investments in its fleet, ordering over US$2 billion worth of CFM LEAP engines in the fourth quarter, bringing total new engine orders to over US$5 billion at list prices for the full year. Furthermore, the company recognised insurance and other recoveries of US$195 million related to the Ukraine conflict in 2024.
Throughout 2024, AerCap returned US$1.6 billion to shareholders through the repurchase of 16.8 million shares at an average price of US$87.80 per share and dividend payments. The company’s book value per share increased approximately 13% from the previous year, reaching US$94.57 as of December 31, 2024.
Basic lease rents for the fourth quarter were US$1.619 billion, slightly up from US$1.576 billion in the same period in 2023. Maintenance rents and other receipts were US$106 million, down from US$142 million in the prior year due to maintenance rights asset amortisation. The company’s net gain on asset sales surged to US$260 million in the fourth quarter, compared with US$94 million in the same period in 2023, driven by an increase in both volume and composition of asset sales.
AerCap’s interest expense, excluding mark-to-market adjustments on interest rate derivatives, reached US$500 million in the fourth quarter, compared to US$477 million in the previous year. The company’s average cost of debt was 4.1% for the fourth quarter, up from 3.7% in 2023. Leasing expenses increased to US$214 million, primarily due to higher maintenance rights amortisation, while asset impairment charges decreased to US$17 million from US$50 million in 2023.
As of December 31, 2024, AerCap’s portfolio comprised 3,525 aircraft, engines, and helicopters that were either owned, managed, or on order. The average age of its owned aircraft fleet was 7.4 years, with new technology aircraft averaging 4.8 years and current technology aircraft averaging 14.9 years. The company maintained an average remaining lease term of 7.4 years.
