AerCap is to suspend it share repurchase activity in the light of current uncertainty in the aviation sector, said the lessors’ chief executive, Aengus Kelly, speaking today at the JP Morgan Industrials Conference.
According to an analyst note published by the bank Kelly was confident in AerCap’s positioning and ability to weather the current crisis but had decided to make this temporary suspension.
Kelly was also confident about the strength in the aviation sector pointing out that air traffic has doubled every 15 years and that AerCap does not expect to see structural changes to the traffic growth trends once COVID-19 runs its course; he said that short-term demand had dipped in prior crises but recovered thereafter.
With regard China Kelly said that while yields remain low, air traffic has rebounded from its trough with increasing load factors.
Despite issues impacting China, Kelly said that it has entered into deferral agreements representing less than 3% of annual lease revenue from its Chinese customers, the majority of which it expects to be repaid by the end of the calendar year.