Dublin-based aircraft lessor, AerCap Holdings N.V., this week reported strong financial results for the fourth quarter and full year ended 31st December 2024. The key highlights of the results were:
- Return on equity of 16% and adjusted return on equity of 15% for the fourth quarter of 2024.
- Cash flow from operating activities of $1.3 billion for the fourth quarter of 2024 and $5.4 billion for the full year 2024.
- Unlevered gain on sale margin of 43% for assets sold in the fourth quarter of 2024, or 2.6x book value on an equity basis.
- Ordered over $2 billion of CFM LEAP engines in the fourth quarter of 2024, bringing total new engine orders by AerCap and SES to over $5 billion, at list prices, for the full year.
- Insurance and other recoveries of $195 million related to the Ukraine Conflict in 2024.
- Returned $1.6 billion to shareholders during 2024 through the repurchase of 16.8 million shares at an average price of $87.80 per share and the payment of dividends.
- New $1 billion share repurchase program announced today.
- Increasing quarterly dividend to $0.27 per share.
- Book value per share of $94.57 as of 31st December 2024, an increase of approximately 13% from 31st December 2023.
- Adjusted debt/equity ratio of 2.35 to 1 as of 31st December 2024.
Commenting on the results, Aengus Kelly, Chief Executive Officer of AerCap said: “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 $869 million of assets in the fourth quarter at a record gain on sale of $260 million. Given AerCap’s strong outlook for 2025 and beyond, we are announcing a new $1 billion share repurchase program as well as an increase in our quarterly dividend to $0.27 per share.”
At year end, AerCap’s portfolio consisted of 3,525 aircraft, engines and helicopters that were owned, managed or on order. The average age of the company’s owned aircraft fleet as of 31st December was 7.4 years (4.8 years for new technology aircraft, 14.9 years for current technology aircraft) and the average remaining contracted lease term was 7.4 years.
AerCap has hundreds of airline customers across the world including Aer Lingus, ASL Airlines Ireland, Emerald Airlines and Lauda Europe (part of the Ryanair Group).
