Aircraft leasing company AerCap reported a hectic final quarter of 2022, with $1bn worth of sales leaving it with a net income of $495 million.
Adjusted net income came to $645 million, or $2.66 per share, the lessor reported, after a record 299 transactions during the fourth quarter (Q4 2022).
The company recorded 159 lease deals, 43 purchases and 97 sales, at a margin of 14%, over the period, leaving it with an adjusted debt/equity ratio of 2.5 to 1 at the end of the year and a fleet of over 3,500 aircraft. In the meantime, ratings agency Moody's upgraded the company to Baa2.
Basic lease rents were $1.49bn for Q4 2022, up around $200 million on the same period in 2021 and primarily due to the impact of the GECAS acquisition. Maintenance rents and other receipts were $140 million, compared with $97 million for Q4 2021.
The company reported net gain on sale of assets of $121 million, which it said was "relating to 83 assets sold for $1 billion", an increase of almost $100 million compared to Q4 2021 that was mainly down to the higher volume and composition of asset sales.
Other Q4 2022 income was $74 million, compared with $38 million for the same period in 2021, an increase "primarily due to the receipt of unsecured claims and settlements".
The company said its board has approved a share repurchase program authorising total repurchases of up to $500 million of AerCap ordinary shares through September 30 2023.
"Repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable US federal securities laws," the company explained in a statement.
However AerCap said that the timing of repurchases and the exact number of ordinary shares to be purchased "will be determined by the company's management, in its discretion, and will depend upon market conditions and other factors". And while the programme is to be funded using the company's cash on hand and cash generated from operations, it may be suspended or discontinued at any time, AerCap further warned.
Looking ahead, AerCap said it has 93% of its new aircraft order book placed to 2024.
"Air travel demand continues to improve as more countries reopen their borders. The strong performance across all of our business lines reflects how well our teams are working together to deliver an extraordinary number of transactions, and clearly demonstrates the success of the GECAS acquisition, the successful integration of the two companies and the recovery in aviation. Broad-based demand, in tandem with a curtailed supply environment, is helping to drive lease rates higher across aircraft, engines and helicopters," AerCap chief executive AengusKelly said.