AerCap has raised its full-year earnings guidance and launched a new $500m share buyback programme after strong demand for aircraft pushed second quarter revenue at the world's largest aircraft lessor 15% higher.
AerCap expects full year adjusted earnings per share of $8.50-$9, including gains on the sale of aircraft, engines and helicopters in the first half of the year but excluding any potential gain on sale in the second half.
This is up from the $7-$7.50 forecast in March.
"We continue to benefit from strong demand for our aviation assets, as well as a robust sales market," chief executive Aengus Kelly said in a statement.
"Our confidence in the future is demonstrated by our increased 2023 full year EPS guidance as well as our new $500m share repurchase programme, which takes our share repurchase authorisations so far this year to $1.5 billion," he added.
The Dublin-based company, which has a portfolio of 3,500 aircraft, engines and helicopters, said 100% of its new aircraft order book was placed with airlines up to 2024.
Meanwhile, the AerCap CEO said today he expects a shortage of new aircraft to last for several years, meaning airlines will be flying old planes for longer.
"We believe this supply demand imbalance will last for several years into the future," Aengus Kelly told an analysts' call, citing engine bottlenecks that will take years to fix.
"I also don't believe a scenario in which passenger yields soften due to a mild European or US recession would derail this (supply-demand) dynamic as the positive momentum from Asia emerging out of COVID restrictions is getting underway," he added.
