Gus Kelly-run lessor also launches $500m share buyback
AerCap’s customers include Aer Lingus. Photo: John Mulligan
AerCap Chief Executive, Gus Kelly
AerCap, the world’s largest lessor of aircraft, has raised its profit guidance for the year on the back of a strong financial performance during the first quarter.
The Dublin-based company now expects to deliver adjusted earnings per share of between $9.30 and $10.30. That compares to a previous forecast of between $8.50 and $9.50.
AerCap, whose chief executive is Aengus Kelly, has also launched a fresh $500m (€440m) share buyback programme.
Shares in the company, which are listed in New York, were trading about 2.7pc higher early yesterday. The stock price of AerCap, which has a market capitalisation of $20bn, have climbed 10pc in the year to date and by 22pc in the past 12 months.
“AerCap produced another strong performance for the first quarter of 2025,” said Mr Kelly. “We continue to benefit from strong demand for our aviation assets, as well as a robust sales market.”
The company’s revenue rose by 3pc to $2.07bn in the first three months of this year compared to the first quarter of 2024. Its net income of $642.8m in the first quarter compared to $604.2m in the first three months of 2024.
Aircraft lease rates have continued to climb despite Donald Trump’s chaotic tariffs programme and the consequent impact on businesses, including airlines.
A number of US carriers have cut their earnings guidance or ditched any guidance at all.
Softer demand and slower predicted growth have tempered expectations.
US low-cost carrier Southwest has been cutting back its network and passenger capacity.
This week JetBlue withdrew its guidance for 2025 entirely as it posted a $208m net loss for the first quarter of the year.
The airline said that it had seen bookings soften in January and deteriorate into February and March, as Trump upended world economies and alarmed many consumers.
SMBC Aviation Capital, a rival of AerCap and also based in Dublin, said recently that aircraft lease rates are still climbing, despite the global economic uncertainty.
The rates are being underpinned by a lack of supply from the manufacturers Boeing and Airbus, despite a broader surge in post-pandemic travel demand.
The International Air Transport Association (Iata) has said that total global passenger demand in March this year rose 3.3pc compared to March 2024. Total capacity available was up 5.3pc year-on-year.
Iata director general Willie Walsh said the challenges of supply chain problems and efficient airport and air traffic management “remain urgent”.
source