AerCap has reported income for the third quarter of 2021 of $434 million, or $3.35 per share. Excluding expenses related to the GECAS transaction, net income for the third quarter of 2021 was $522 million, or $4.04 per share.
Aengus Kelly, Chief Executive Officer of AerCap, said, “I am pleased to report a strong quarter of earnings, with net income of $434 million, or $3.35 per share. This quarter was an important inflection point for the company. Our business continues to recover from the effects of the Covid-19 pandemic, with leasing demand and cash collections remaining strong. The GECAS transaction adds a portfolio of well-priced assets and a deeply experienced team of people that will further enhance AerCap’s position as the lessor of choice for airlines around the world.”
During the quarter, AerCap completed the GECAS acquisition and its offering of $21bn of senior unsecured notes in October 2021 and a $2 billion secured institutional term loan in November 2021 with an average coupon of approximately 2.6% and an average tenor of 7.1 years.
AerCap’s adjusted debt/equity ratio of 2.3 to 1 at September 30, 2021, which was a record low for the company. Pro forma for the GECAS acquisition, AerCap’s adjusted debt/equity ratio was 2.8 to 1 as of September 30, 2021.
The lessor stated that it continued to see significant improvements in cash collections, trade receivables and deferral requests. During the third quarter, AerCap signed lease agreements for 42 aircraft in the third quarter of 2021 and confirmed that 100% of new aircraft order book is placed through 2022.
AerCap’s basic lease rents were $848 million for the third quarter of 2021, compared with $897 million for the same period in 2020. The decrease was primarily due to lease restructurings, transitions and the impact of airline bankruptcies.
Maintenance rents and other receipts were $110 million for the third quarter of 2021, compared with $91 million for the same period in 2020. The increase was primarily due to higher maintenance revenue recognized as a result of lease terminations during the third quarter of 2021.
Net gain on sale of assets for the third quarter of 2021 was $38 million, relating to 11 aircraft sold for $101 million, compared with $7 million for the same period in 2020, relating to seven aircraft sold for $63 million. The increase was primarily due to the higher volume and composition of asset sales.
Other income for the third quarter of 2021 was $459 million, compared with $31 million for the same period in 2020. The increase was primarily driven by proceeds from unsecured claims in the third quarter of 2021.
As of September 30, 2021, AerCap’s portfolio consisted of 1,304 aircraft that were owned, on order or managed. The average age of the company’s owned fleet as of September 30, 2021 was 6.7 years (3.6 years for new technology aircraft, 12.7 years for current technology aircraft) and the average remaining contracted lease term was 7.3 years.