Aercap Holdings N.V. (AER)

AerCap reported third-quarter 2026 net income of $949 million, or $6.17 per share, and a record adjusted net income of $1,009 million, on 28 October 2026 1.

Total revenues and other income for the quarter were $2,415 million, up 5 percent from $2,309 million a year earlier 1.

Net gain on sale of assets was $353 million, from 70 owned assets sold for $1.1 billion 1. The company said the sales earned an unlevered gain-on-sale margin of 45 percent 1.

The company raised its full-year 2026 adjusted earnings per share guidance to approximately $20.70, before any fourth-quarter gains on sale 1. The guidance counts gains on sale in the first nine months of 2026 but none from the fourth quarter 1.

Chief executive Aengus Kelly said higher fuel prices are impacting airline profitability, but that supply and demand in commercial aviation remain favorable for AerCap 1.

The company repurchased 5.3 million shares in the quarter and announced a new $1 billion repurchase program 1. The board declared a quarterly dividend of $0.40 per share, payable on 3 December 2026 2.

AerCap grew by buying other lessors: Genesis Lease in 2010, International Lease Finance Corporation (ILFC) in 2014 and GE Capital Aviation Services (GECAS) in 2021 4. The company calls the ILFC and GECAS deals the two largest transactions in the history of aviation leasing 4.

Leasing itself grew from the 1970s, when pioneers such as Guinness Peat Aviation and ILFC were created and airlines increasingly turned to operating leases to meet their aircraft needs 4.

The company had significant assets on lease to Russian airlines when the Ukraine conflict began, recovered only a small minority, and in 2022 wrote off the rest of its equipment in Russia 4.

Net recoveries related to the Ukraine conflict were $1.3 billion in 2023, $195 million in 2024 and $1.5 billion in 2025 4. The 2025 total included $973 million from a London Commercial Court judgment of 11 June 2025 on its claim against its insurers 4.

Total revenues and other income were $7.58 billion in 2023, $8.0 billion in 2024 and $8.52 billion in 2025 4. Net income was $3.1 billion in 2023, $2.1 billion in 2024 and $3.8 billion in 2025 4.

Lease revenue, the rent and related receipts from airlines, rose from $6.86 billion in 2023 to $7.37 billion in 2025, while net gain on sale of assets rose from $490 million to $819 million 4.

Weighted average diluted shares fell from 227.7 million in 2023 to 176.1 million in 2025 4. In 2025 the company repurchased 22.1 million ordinary shares for about $2.4 billion 4.

In 2025 it bought 145 assets for about $5.4 billion and sold 189 for about $3.9 billion 4. It also agreed to buy 52 Airbus A320neo Family aircraft from the former Spirit Airlines order book, with options on up to 45 more 4.

Aircraft leasing

At 31 December 2025 it owned 1,501 aircraft, managed 148 and had 283 new aircraft on order 4.

Under its operating leases the airline maintains the aircraft, while AerCap keeps the benefit and risk of the aircraft's value at the end of the lease 4.

The company serves approximately 300 customers, and in 2025 the weighted average utilization of its owned aircraft was 99 percent, meaning nearly every aircraft was on lease 4. No lessee was more than 10 percent of 2025 lease revenue 4.

The top lessees by 2025 lease revenue were American Airlines at 5.1 percent, Azul Airlines at 3.9 percent and China Southern Airlines at 3.2 percent 4.

By lessee region in 2025, Asia/Pacific was 30 percent of lease revenue, Europe 28, the Americas north of Mexico 19, Latin America 12 and Africa and the Middle East 11 4.

At 30 September 2026 the owned passenger fleet averaged 7.3 years old, and the average remaining contracted lease term was 7.4 years 1.

Cargo, engines and helicopters

AerCap Cargo has a fleet of approximately 120 aircraft that are owned, serviced or committed for conversion, and about 25 customers 4. Its largest customers are Kalitta Air and Amazon 4.

AerCap is the world's largest lessor of spare engines, with over 1,200 owned, managed and on order, including those of Shannon Engine Support, a joint venture with Safran Aircraft Engines 4.

Milestone Aviation Group leases helicopters and had 335 owned or on order at 31 December 2025, for about 50 customers in over 35 countries 4. Its largest customers are CHC Helicopter, Bristow Helicopters, Saudi Aramco and Omni Helicopters International 4.

AerCap Materials sells airframe and engine components and runs its own dismantlement facility in Greenwood, Mississippi 4. It began in 1971 as the Memphis Group 4.

People and offices

Aengus Kelly is chief executive and an executive director, first appointed in May 2011, and Paul Dacier is non-executive chairman 4. The company had 668 employees at 31 December 2025, 447 of them in Ireland 4.

It leases its Dublin headquarters under a 25-year lease that began in December 2015 and also leases offices in Shannon, Singapore and Miami 4.

Rivals and problems

The company says its competitors are primarily other major aircraft leasing companies, and that airlines, manufacturers and financial institutions may compete too 4.

It lists Boeing delivery delays among its risks, noting the 737 MAX grounding in 2019 and 2020 and the 787 delivery suspension in 2020 and 2021 4. On Ukraine, it says it lost its flight equipment in Russia 4.

Two exposures stand out: 13.9 percent of long-lived assets were on lease to U.S. airlines and 11.7 percent to Chinese airlines at 31 December 2025 4.

The umbrella, in words

AerCap Holdings N.V. is a holding company whose subsidiaries own the aircraft 4. Its major operating subsidiaries are each ultimately 100 percent owned and include AerCap Ireland Limited, AerCap Ireland Capital DAC and AerCap Global Aviation Trust 4.

Its named businesses are AerCap Cargo, Milestone Aviation Group (helicopters) and AerCap Materials (parts) 4. The full subsidiary list is Exhibit 8.1 to the annual report 4.

SES, which leases spare engines, is a joint venture in which AerCap and Safran Aircraft Engines each hold 50 percent 4. AerCap Funding Designated Activity Company, a wholly-owned subsidiary, issued $750 million of 5.500% notes due 2030 and $750 million of 5.875% notes due 2033 on 7 October 2026 5.

As of 31 December 2025, Eagle Capital Management reported owning 8.1 percent and BlackRock 6.6 percent, and all ordinary shares have the same voting rights 4.

The company expects full-year 2026 adjusted earnings per share of approximately $20.70, before any fourth-quarter gains on sale, and a full-year tax rate of approximately 15 percent excluding discrete items 1.

The board declared a $0.40 dividend payable on 3 December 2026 to holders of record on 11 November 2026 2.

A new $1 billion share repurchase program was announced in the third quarter of 2026 1.

At 31 December 2025 the company had commitments to buy 283 new aircraft for delivery through 2031, plus 35 engines and 12 helicopters through 2027 4.

Its filed schedule of purchase obligations was $5,249.1 million for 2026, $4,252.5 million for 2027 and $15,464.3 million in total 4. The Airbus agreement for 52 aircraft carries options on up to 45 more 4. The company says it can reschedule some deliveries and that timing includes expected delivery delays 4.