Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Gus, do you expect more bilateral transactions given the current tariff uncertainty, and how does this compare to opportunities in helicopters and engines? A: Aengus Kelly, CEO: Given AerCap's global scale, we anticipate more bilateral negotiations. The engine opportunities arise from our industrial infrastructure and experience with OEMs. We also executed a 787 sale leaseback on a bilateral basis, indicating potential for more such opportunities.
Q: Why didn't you increase your EPS guidance despite the share buyback and gains on sale? A: Peter Juhas, CFO: We increased full-year guidance by $0.80 due to gains on sale in Q1. The strong quarter was driven by higher net maintenance contribution and other income. Despite some delays in our 777 freighter conversion program, we expect to be in the top half of the guidance range.
Q: How much capital can you deploy in engines and helicopters over the next year or two? A: Aengus Kelly, CEO: We can deploy significant capital, up to $4 billion this year alone, focusing on transactions that enhance shareholder returns. Our growth is driven by profitability, not just expansion for its own sake.
Q: Are you seeing any impact on demand for your fleet from US airlines retiring more aircraft? A: Aengus Kelly, CEO: The US market is only 22% of the global market. Retirements often involve older aircraft like CRJs or 757s, which are not relevant to our current fleet. We continue to see strong demand for our aircraft, evidenced by recent extensions.
Q: How do tariffs impact lessors, and can they help airlines with Boeing or Airbus lift needs? A: Aengus Kelly, CEO: Lessors can assist airlines by providing aircraft from the used market, minimizing consumer costs. If tariffs persist, lessors could play a crucial role in supplying aircraft to airlines, especially given limited new aircraft availability before 2030.
Q: What is the outlook for wide-body demand, and how do you view the 777-9's market potential? A: Aengus Kelly, CEO: Wide-body demand remains strong, particularly for 787-9s and A350-900s. The 777-9 is expected to be a capable and fuel-efficient aircraft, likely dominating its market segment once in service.
Q: How does the Shannon Engine Support JV operate, and what are its economic prospects? A: Aengus Kelly, CEO: We support OEMs by ensuring spare engines are available for airlines, involving significant logistics and infrastructure. The JV is part of the aftersales service, with substantial engine movements annually, indicating strong operational capacity.
Q: How has the aircraft lease renewal rate evolved, and what does it indicate about demand? A: Aengus Kelly, CEO: The renewal rate has increased from 60% in 2021 to around 90% recently, reflecting strong demand. While some aircraft were moved for better credit and lease terms, the high renewal rate underscores robust market conditions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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