AerCap Holdings has reported a record adjusted net income of $865 million for the third quarter, driven by strong sales and a significantly improved gain-on-sale margin.
Adjusted earnings per share (EPS) came in at $4.97, and was raised to $13.70 for the full year, not including additional gains on sale for the remainder of the 2025.
During the quarter, AerCap sold a record $1.5bn of assets, producing a record gain on sale of $332 million and an unlevered gain-on-sale margin of 28%.
Total net gain on sales was more than triple that of last year’s third quarter, which came in at $102 million.
Aengus Kelly, CEO of AerCap, described the results as “exceptional”, adding that they send a clear signal of the company’s efficient capital deployment and positive long-term outlook.
“This was another great quarter for AerCap, with earnings and cash flows remaining strong throughout the business, and the addition of up to 97 A320 family aircraft to our orderbook,” he said.
“The favourable market environment continues and this is reflected in the results across the group as a whole.”
AerCap closed 146 transactions during the third quarter, made up of 96 aircraft transactions, 30 engine transactions, and 20 helicopter transactions. It sold 40 aircraft, leased 39, and purchased 17.
Utilisation rates topped 99%, which Kelly described as “historically high”, and approximately 85% of used aircraft were extended on “very attractive” terms.
For widebody aircraft, the extension rate was 100%, including nine 787s, three 777-300ERs, and two A330s.
Kelly said that widebody aircraft will remain in high demand for the “foreseeable future” due to ongoing production issues.
“One thing that seems to have been overlooked in the focus on MAX production rates and narrowbody engine issues is how far the OEMs are behind in the widebody production,” he said.
“As an example, both OEMs produced more widebody aircraft in 2008 than they did last year, and I do not expect them to surpass the peak of 2016 this decade.”
Kelly added that the picture is “similarly robust” on the narrowbody side, with strong demand across the board.
This is particularly helpful to AerCap at present, given that AerCap is set to reacquire 27 aircraft from bankrupt low-cost carrier Spirit Airlines.
AerCap will also acquire Spirit’s orderbook of 52 A320neo aircraft and 45 options - one the lessor’s highlights in its earnings report, although the agreement was completed in October.
“We believe that the timing and pricing of these units is far superior to what we could have negotiated if we had negotiated with Airbus directly,” said Kelly.
“In fact, the order and options mean we have now agreed to purchase over 200 aircraft in bilateral deals since 2021, without placing a direct OEM order.”
Another highlight of the quarter, previously covered by Airline Economics, was the seven-year agreement signed with GE Aerospace to provide lease pool management services for the GE9x engine.
The agreement also extended AerCap’s ongoing lease pool support for the GEnX, GE90, CF6, and C34 engines.
“The provision of spare engine support has become a key part of AerCap’s overall customer proposition, particularly at the moment given the global engine shortage,” said Kelly.
“Our portfolio of 1,200 spare engines, 90% of which are the latest technology, is another key differentiator between AerCap and any of our competitors.”
Since closing the GE9x agreement, AerCap has committed approximately $10bn across its two engine divisions.
This includes the wholly owned AerCap engine leasing and asset management business, as well as Shannon Engine Support (SES), a 50/50 joint venture with Safran.
Finally, AerCap strengthened its balance sheet during the third quarter by recovering $475 million of assets that were lost due to the war in Ukraine, bringing total recoveries since 2023 to $2.9bn.
As of September 30, 2025, AerCap’s book value per share stood at $109.22, an increase of approximately 20% over the same period last year.
These metrics informed AerCap’s decision to invest $1bn in share repurchases during the quarter - equivalent to 5% of the company’s market cap and a new quarterly record for open market repurchases.
“We simply cannot demonstrate our conviction any clearer than that,” said Kelley.