AerCap has announced a deal with Safran Aircraft Engines (Safran) and Shannon Engine Support (SES) for the purchase of 150 new CFM LEAP spare engines valued at approximately $3 billion at list prices.
The AerCap Board of Directors has also authorised a new $500 million share repurchase program through December 31, 2024; as well as declaring the initiation of the company's first quarterly dividend on its common stock of $0.25 per share. This initial quarterly dividend is to be payable on June 13, 2024, to shareholders of record at close of business on May 22, 2024.
The engines will be managed by SES. SES is a 50/50 joint-venture company between Safran and AerCap. The additional engines will deliver in line with the growing fleet of in-service Boeing 737MAX and Airbus A320neo Family aircraft.
""Today's announcements demonstrate the high level of confidence we have in the future profits and cash flows of AerCap,"" said Aengus Kelly, the Chief Executive Officer of AerCap. ""The strong operating environment for our engine leasing business and our continued partnership with Safran and CFM International supports the organic growth opportunity we have announced today. Furthermore, we are announcing a new share repurchase authorization and an inaugural dividend, highlighting our relentless focus on creating value for our shareholders.""
""Today's announcement takes our share repurchase authorizations to almost $4 billion since March 2023 and continues AerCap's strong track record of capital return,"" added Kelly. ""Likewise, our inaugural dividend reflects our confidence in the outlook for the company and our future cashflows,"" Kelly concluded.
Engine order from AerCap; new share repurchase program and first cash dividend
