Adjusted Earnings Per Share: $3.29 in Q1 2024, a 40% increase over the previous year.
Adjusted Net Income: $658 million for Q1 2024.
Book Value Per Share: $87.47, a 27% year-over-year increase.
Basic Lease Rents: $1.586 billion, a $10 million increase from the last quarter.
Maintenance Revenues: $179 million for Q1 2024.
Net Gain on Sale of Assets: $160 million for the quarter, with total sales revenue of $920 million from 43 owned assets, resulting in an unlevered gain on sale margin of 21% for Q1.
Other Income: $93 million for the quarter.
Interest Expense: $492 million, including $3 million of mark-to-market losses on interest rate derivatives.
Leasing Expenses: $149 million for the quarter.
Income Tax Expense: $94 million, representing an effective tax rate of 14.3%.
Future Guidance
Full-Year 2024 Guidance: Increased to approximately $9.20 per share.
Expected Capital Deployment: Suggested that approximately $350 million remaining in authorization for share repurchases, plus additional deployment based on excess capital generation.
Trends, Market Conditions, Sentiment
Demand for Travel: Notably rising, particularly in China, with passenger records set in Q1.
Supply-Demand Imbalance: Continues to create significant pricing tensions for aircraft, with multiple bidders for available aircraft.
Used Aircraft Demand: Lease agreements signed for A320ceo, Embraer 737 freighters, and 777.
New Aircraft Demand: Remains robust, with the company sold out on 787, A330neos, Embraer E2s, and Airbus A220.
Engine Business: Continues to present opportunities with healthy activity.
Helicopter Segment: Saw good demand in Q1 for Sikorsky 92, with extensions and new agreements signed.
Aircraft Sales Market: Strong environment for leasing as well as for aircraft sales, reflected in high gain on sale margin this quarter.
Operational and Financial Strategy: Firmly focused on long-term value maximization through earnings per share and book value per share growth.
Notable Quotes
Aengus Kelly on Earnings Growth: “I am pleased to report that the AerCap platform has delivered another quarter of consistent earnings and profitability.”
Peter Juhas on Guidance: “Given the strong performance this quarter, including higher managed revenues, we’re raising our guidance to the top end of that range.”
Aengus Kelly on Managing Deliveries: “The challenge is when the target is moving and even moving very close in, it can be far more difficult for an airline.”
Aengus Kelly on Competition: “It’s just impossible to develop a new aircraft, particularly if you need a new engine technology… before the end of the 2030s.”
Closing Remarks by Aengus Kelly: “AerCap has produced another excellent quarter of earnings and cash flows…we’re hosting 2024 Capital Markets Day in New York next week on May 8.”
