Higher fuel prices for between three and six months would pressure the airline industry, but could bring benefits for aircraft lessors, the world's largest aircraft leasing company, AerCap said today.
Prolonged high fuel prices could contribute to an acceleration in the retirement of older technology aircraft, chief executive Aengus Kelly told analysts in a conference call following the release of first quarter results.
"In particular, it is likely that we'd see increased sale lease back opportunities as airlines look to fund growth while preserving cash and prioritising liquidity," Aengus Kelly said.
AerCap said its first quarter total revenues and other income rose by 8% to $2.242 billion from $2.077 billion.
It posted record adjusted net income for the first quarter of 2026 of $889m, or $5.39 per share.
During the three month period, it added 110 new Airbus A320neo family aircraft to its order book, including the exercise of 45 options, with deliveries starting in 2028.
It also signed lease agreements with CFM International for 48 LEAP-1A engines through AerCap's Shannon Engine Support joint venture.
As of March 31, AerCap said its portfolio consisted of 3,569 aircraft, engines and helicopters that were owned, on order or managed.
The average age of the company's owned passenger aircraft fleet as was 7.4 years (5.5 years for new technology aircraft and 15.4 years for current technology aircraft).
The average remaining contracted lease term was 7.1 years, it added.
AerCap's CEO Aengus Kelly said the company was pleased to report another record quarter for AerCap.
"Despite recent geopolitical developments, demand for aviation assets remains robust, supported by sustained consumer demand for air travel and ongoing supply constraints," the CEO said.
"During the quarter, we closed 286 transactions and achieved an 87% lease extension rate. Reflecting this strong performance, we have increased our 2026 adjusted EPS guidance to $14.50 and announced a new $1.0 billion share repurchase programme," he added.
