Tuesday, February 21, 2017

AerCap posts $1.04 billion profit in 2016

Ireland-based lessor AerCap turned in a net profit of $1.04 billion on a reported basis for the year ended Dec. 31, 2016, compared to $1.17 billion for the preceding year. Its income came from revenue of $5.15 billion, slightly down on 2015’s figure of $5.28 billion.

However, the company said it had finished the year strongly, turning in a record net profit for 4Q of $364.7 million compared to $264.2 million for the year-ago period. Revenue for the final quarter of the year was $1.36 billion, up slightly from $1.33 billion.

Among the year’s highlights, the lessor executed 458 aircraft transactions in 2016, including 126 involving wide-bodies and closed more than $3 billion in deals.

Its fleet utilization rate for 2016 was 99.5%, while 98% of its new aircraft deliveries through 2018 and 78% through 2019 have already been leased. The company was uprated to an investment-grade rating by Moody’s.

The average age of its owned fleet was 7.4 years

It repurchased 5.7 million shares in 4Q 2016 for $241 million and 25 million shares in 2016 as a whole for $966 million, with its board authorizing a new $350 million share repurchase program that will run through June 30, 2017.

“AerCap delivered record results in the fourth quarter, finishing off a very successful year for the company,” CEO Aengus Kelly said.

“We continued to focus on proactive portfolio management initiatives, which have resulted in executing over $3 billion in asset sales. This, combined with signing a record 279 lease agreements, illustrates the scale of AerCap’s platform and the expertise of its people.”

Several factors resulted in the decrease in annual net income, including sales of older aircraft during 2015 and 2016, which reduced average lease assets by approximately $1.6 billion.

At Dec. 31, 2016, AerCap owned, managed or had on order 1,566 aircraft in its portfolio. The company provides aircraft to around 200 customers in approximately 80 countries.

(Alan Dron - ATWOnline News)

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