Aircraft lessor AerCap posted roughly unchanged adjusted net profits of $301.6 million for the first quarter, though its reported earnings were down for the period reflecting losses related to the restructuring of its AeroTurbine business.
The adjusted profit compares with the $302.1 million it recorded at the same stage last year. The adjusted net profit excludes restructuring related costs of $12.6 million and a net period loss of $12.9 million at AeroTurbine. The lessor last year downsized AeroTurbine and it now only provides services to support AerCap's aircraft leasing business. AerCap says the adjusted profit provides a core earnings figure relating to aircraft leasing.
AerCap's reported net income of $223.1 million for the first quarter compares with a profit of $311.5 million last year.
"We delivered adjusted earnings per share of $1.54, and expect to generate $800 million of excess capital during 2016," says AerCap chief executive Aengus Kelly. "We continue to see global demand for our aircraft and have access to $9.1 billion of liquidity to meet our strategic objectives."
AerCap total revenues grew 2% in the first quarter to $1.32 billion. Basic lease rents were slightly down 2% during the period to $1.14 billion which AerCap attributed to the sale of older aircraft, while maintenance rents and other receipts more than doubled to $150 million for the period. The latter was driven by lease terminations and amendments in the first quarter.
Net gain on sale of assets for the first quarter of 2016 was $19 million, relating to the sale of 19 aircraft sold and nine reclassified to finance leases. This compares to a gain of $33.7 million for the same period in 2015, relating to the sale of a dozen aircraft and five reclassified to finance leases.
Other income for the first quarter cut to a third, at $9.3 million, reflecting the restructuring of AeroTurbine.
The aircraft lessor says it completed 131 aircraft transactions during the first quarter including 36 widebodies. It has a 99.3% fleet utilisation rate for the quarter
AerCap says that 90% of new aircraft deliveries through 2018 have been leased under contract or letter of intent on an average 12-year lease terms as of 9 May.
Source: Cirium Dashboard
