AerCap reports $1.1bn net income for fourth quarter 2023

AerCap has reported net income for the fourth quarter of 2023 of $1.1bn, up from $495 million year-on-year (YoY). Net income for the full year 2023 was $3.1bn. Adjusted net income for the fourth quarter, including net recoveries related to aircraft grounded due to the Ukraine conflict, was $641 million, stable against the adjusted net income of $645 million for the same period a year prior. Adjusted net income for the year was $2.4bn, up from 2022's adjusted net income of $2.1bn. Total revenue for the fourth quarter was $1.9bn and $7.6bn for the full year. Adjusted earnings per share for the fourth quarter are $3.11 while it reported $10.73 per share for the year. These results reflect the continued strong operating environment across our businesses and the positive momentum for leasing and sales of aircraft, engines and helicopters,"" said AerCap CEO Aengus Kelly. ""In addition, this quarter we collected over $600 million of insurance settlements, for a total of $1.3 billion collected during 2023."" The company returned $2.6bn to shareholders through the repurchase of 44.3 million shares during 2023 at an average price of $59.09 per share. Kelly said: ""Given the strong tailwinds that we see for demand for aircraft, engines and helicopters, we are confident about the outlook for AerCap in 2024 and beyond."" In an earnings call Kelly said: ""On airframe MRO, I would expect that issue to get resolved sooner. It's easier to conduct airframe MRO than it is to do engine MRO... I think the airframe MRO will get solved first. Engine MRO, though, here's the real issue: There's a finite supply of parts to build and repair engines."" He described how a part could go to a production aircraft engine, to spare engines, or to a MRO shop for repairs. ""There are three sources of demand for every engine part being produced today. The manufacturers of those parts way back up the supply chain that do the castings are not going to increase that significantly anytime this decade as far as I understand. So I think we will see the engine issues persist through the decade."" Kelly added that AerCap is the largest supplier of spare engine parts globally, which gives the company an ""enviable position"".