AerCap
AerCap Holdings N.V. is an Irish-domiciled global aviation leasing company headquartered in Dublin that specializes in the ownership, leasing, financing, sale, and management of commercial aircraft, engines, and helicopters to airlines and operators worldwide.[1][2] Founded in 1995, AerCap has expanded through a series of acquisitions to become the world's largest lessor of commercial aircraft by fleet size and value, including the purchase of International Lease Finance Corporation in 2014 and GE Capital Aviation Services for over $30 billion in 2021.[3][4] The company maintains a diversified portfolio exceeding 3,000 assets, valued at approximately $70 billion, encompassing owned, managed, and committed aircraft alongside an order book for future deliveries, enabling it to serve over 300 customers across more than 80 countries via long-term operating leases.[5][6] AerCap's business model capitalizes on the aviation industry's reliance on leasing, which accounts for over 40% of global commercial aircraft utilization, providing airlines with flexible access to fuel-efficient, modern fleets without the capital outlay of outright purchases.[7] Its publicly traded status on the New York Stock Exchange under the ticker AER supports ongoing investments in high-demand assets, contributing to record revenue of $6.64 billion in fiscal year 2023 amid post-pandemic recovery in air travel demand.[8][9]Business Operations
Asset Portfolio
AerCap's owned asset portfolio centers on commercial aircraft, engines, and helicopters leased to global operators, forming the core of its leasing revenue. As of June 30, 2025, this portfolio included over 1,700 aircraft, more than 1,200 engines, and over 300 helicopters.[10] The aircraft component emphasizes mid-life to new-generation models, with the fleet valued at approximately $62 billion in early 2025.[11] Approximately 90% of the owned aircraft fleet consists of high-demand Airbus and Boeing types, including the A320ceo and A320neo families, A330, A350, Boeing 737NG, and 737 MAX variants, which support efficient operations for low-cost and full-service carriers alike.[12] New-technology assets, featuring advanced aerodynamics and engines for reduced fuel burn and emissions, comprise 75% of the overall fleet.[12] Narrowbody aircraft dominate for short- to medium-haul routes, supplemented by widebody models for long-haul and a smaller segment of regional jets, turboprops like ATR 72 and DHC8-400, and cargo conversions such as Boeing 737 and 767 freighters.[13][14] The engine portfolio features units from leading manufacturers including CFM International, GE Aviation, and Pratt & Whitney, often leased standalone or packaged with airframes to match customer needs. Helicopter assets support diverse applications, from passenger transport to utility services. AerCap bolsters its portfolio through an order book of 335 fuel-efficient aircraft, prioritizing in-production models to align with demand for sustainable aviation.[10] Beyond owned assets, the company manages third-party portfolios, expanding oversight to 3,508 total items including those on order.[15] Active trading in 2025, such as 66 leases signed in Q3 encompassing 39 aircraft (14 widebody, 25 narrowbody), 15 engines, and 12 helicopters, underscores portfolio optimization for yield and risk management.[16]Customer Base and Leasing Model
AerCap maintains a diversified customer base comprising approximately 300 clients worldwide as of October 2025, primarily airlines spanning full-service carriers, low-cost operators, cargo providers, and regional airlines.[17] This includes major operators such as Emirates, Qatar Airways, Lufthansa, Delta Air Lines, United Airlines, easyJet, IndiGo, and Ethiopian Airlines, with exposure across all continents: Africa and the Middle East (e.g., Air Mauritius), Asia-Pacific (e.g., Air New Zealand), Europe (e.g., British Airways), Latin America, and North America.[18] The portfolio features over 150 active airline relationships, emphasizing broad diversification to mitigate risks from any single lessee or region.[18] Customer concentration remains low, with revenue distributed across hundreds of lessees to avoid over-reliance on individual clients; for example, as of December 31, 2023, no single customer dominated contributions, aligning with management's strategy to balance exposure by airline type, geography, and asset category.[19] Engine leasing customers include major original equipment manufacturers like GE and CFM International, which represent key but non-concentrated segments.[20] The company's leasing model centers on operating leases for commercial passenger and cargo aircraft, engines, and helicopters, under which lessees handle all operational duties—including maintenance, servicing, fuel, crew, insurance, and compliance with regulatory standards such as FAA requirements—while AerCap retains ownership of the assets.[1] This structure, applied to a fleet exceeding 1,700 aircraft as of June 30, 2025, generates primary revenue through fixed rental payments over lease terms, typically structured as long-term commitments from the owned portfolio and order book of in-demand models like the Airbus A320neo family.[1][21] Supplemental income derives from sale-leaseback deals, asset trading, and aftermarket services, with leases customized to airline needs for flexibility in fleet expansion without upfront capital outlays.[1] While most activity involves operating leases, a minor portion includes finance leases yielding interest income, such as $72 million net for the nine months ended September 30, 2024.[22] This model supports consistent returns by transferring operational risks to lessees while leveraging AerCap's scale in asset management and remarketing.[1]Global Locations and Infrastructure
AerCap maintains its global headquarters in Dublin, Ireland, at AerCap House, 65 St. Stephen's Green, Dublin D02 YX20, which serves as the central hub for strategic decision-making, investor relations, and core administrative functions.[23] This location leverages Ireland's aviation ecosystem, including proximity to Shannon Airport for technical operations.[23] The company operates a distributed network of regional offices to facilitate customer engagement, asset management, and supply chain logistics across key aviation markets in Europe, North America, Asia-Pacific, and the Middle East.[23] These offices support leasing, engine management, and materials distribution activities.[23]| Region | Key Offices and Facilities |
|---|---|
| Europe | Shannon, Ireland (Aviation House, technical and engine operations)[23] Amsterdam, Netherlands (Schiphol area, leasing support)[23] London, UK (Berkeley Square, regional sales)[23] Toulouse, France (Airbus vicinity, engineering collaboration)[23] Brussels, Belgium (policy and regulatory affairs)[23] |
| North America | Miami, Florida, USA (Brickell Plaza, Americas leasing)[23] Memphis, Tennessee, USA (Distriplex Farms, materials distribution and supply chain)[23] Cincinnati, Ohio, USA (West Chester, engine services)[23] Greenwood, Mississippi, USA (Leflore Airport, 40,000 sq ft aircraft dismantlement and teardown facility)[24] |
| Asia-Pacific and Middle East | Singapore (Asia Square Tower 1, APAC operations)[23] Shanghai, China (Jinmao Tower, Greater China market)[23] Dubai, UAE (Dubai Internet City, Middle East hub)[23] |
Historical Development
Founding and Early Expansion (2005–2013)
AerCap was established in 2005 through the acquisition of debis AirFinance B.V., a leasing subsidiary of DaimlerChrysler, by funds managed by Cerberus Capital Management, L.P., for approximately €1 billion.[26] debis AirFinance had previously acquired AerFi Group plc, inheriting a portfolio of 104 aircraft.[3] On June 27, 2005, Cerberus formed AerCap Holdings C.V., a Dutch limited partnership, which on June 30 acquired all shares and assumed certain liabilities of the renamed AerCap B.V. (formerly debis AirFinance).[27] The company was headquartered in Amsterdam, Netherlands, with significant operations in Shannon, Ireland, leveraging the region's established aircraft leasing ecosystem originating from earlier entities like Guinness Peat Aviation.[28] Following its formation, AerCap pursued an initial public offering on the New York Stock Exchange in November 2006, issuing 6.8 million ordinary shares at $23 each, generating net proceeds of approximately $143 million after underwriting discounts. These funds supported portfolio expansion, including a letter of intent signed in October 2006 with Airbus for 20 new A330-200 widebody aircraft.[29] In April 2006, AerCap acquired AeroTurbine, Inc., a U.S.-based provider of aircraft disassembly, parts sales, and leasing, diversifying beyond whole-aircraft leasing into engines and components. This period emphasized organic growth through selective purchases of owned and managed aircraft, targeting fuel-efficient models amid rising global air travel demand. From 2007 to 2013, AerCap expanded its fleet via new aircraft orders, secondary market acquisitions, and strategic partnerships, including the formation of AerDragon Aviation Leasing in 2009 as a joint venture with Industrial and Commercial Bank of China to tap Asian markets. The company completed hundreds of lease transactions, balancing sales of older assets with investments in modern types like Boeing 737s and Airbus A320 family aircraft.[30] By 2013, AerCap had grown its owned aircraft portfolio significantly from the initial 104 units, positioning itself as a mid-tier lessor focused on operational efficiency and customer diversification across over 80 airlines worldwide, though exact fleet figures varied with managed versus owned distinctions in financial reporting.[31]Acquisition of International Lease Finance Corporation (2014)
On December 16, 2013, AerCap Holdings N.V. announced a definitive agreement to acquire International Lease Finance Corporation (ILFC), a major aircraft lessor and wholly owned subsidiary of American International Group, Inc. (AIG).[32] Under the terms, AIG was to receive $3 billion in cash and 97,560,976 newly issued AerCap common shares, implying an initial transaction value of approximately $5.4 billion based on AerCap's share price at announcement.[33] [32] The deal was structured through AerCap Ireland Limited, a wholly owned subsidiary, purchasing 100% of ILFC's common stock, with an expected closing in the second quarter of 2014 subject to regulatory approvals and customary conditions.[34] [35] The acquisition received clearances from relevant antitrust authorities, including the Irish Competition and Consumer Protection Commission, and closed on May 14, 2014.[36] [37] By completion, the transaction's total value had risen to roughly $7.6 billion, driven by an approximate doubling of AerCap's share price since announcement.[38] [39] AerCap financed the cash component via existing liquidity, new unsecured credit facilities totaling $3.75 billion (including a $2.75 billion revolving facility replacing ILFC's prior lines), and a concurrent private placement of $2.6 billion in senior notes.[36] Post-acquisition, AerCap emerged as the world's largest independent aircraft leasing company by fleet value and assets, with combined assets of about $45 billion and a portfolio exceeding 1,300 owned, managed, or committed aircraft.[36] [32] The integration enhanced AerCap's scale, diversified its customer base and aircraft types, and strengthened its order backlog, positioning it ahead of competitors in the global leasing market.[38] Credit rating agencies, such as Fitch, adjusted AerCap's issuer default rating downward to reflect increased leverage from the debt-funded deal while stabilizing outlooks on expected synergies.[40]Acquisition of GE Capital Aviation Services (2021)
On March 10, 2021, AerCap Holdings N.V. announced an agreement to acquire GE Capital Aviation Services (GECAS), a commercial aircraft leasing and financing business owned by General Electric Company, in a transaction valued at approximately $30 billion.[41][42] Under the terms, General Electric would receive 111.5 million newly issued AerCap shares, about $23 billion in AerCap senior notes, and $1.25 billion in cash, with the deal transferring roughly $34 billion in GECAS net assets, including its engine leasing operations and the Milestone helicopter leasing business.[43][44] The acquisition aimed to combine AerCap's and GECAS's portfolios to form the world's largest aviation lessor by assets, with a combined fleet exceeding 2,000 owned, managed, and leased aircraft serving over 300 customers globally.[41] AerCap shareholders approved the transaction on May 12, 2021, following which the deal progressed through regulatory reviews, including antitrust scrutiny from bodies such as the U.S. Department of Justice and the European Commission, amid concerns over market concentration in aircraft leasing.[45] The combined entity was expected to retain the AerCap name, with GECAS operating as a wholly owned subsidiary, enhancing scale in narrowbody, widebody, and regional aircraft segments while integrating complementary engine and parts leasing capabilities.[41] General Electric stated the divestiture would aid its debt reduction efforts post its own financial restructuring.[42] The acquisition closed on November 1, 2021, after satisfying all closing conditions, including regulatory clearances, marking a pivotal expansion for AerCap despite the ongoing aviation industry recovery from the COVID-19 downturn.[43] Post-closing, the merged portfolio featured diversified assets valued at over $65 billion, with new-technology aircraft projected to comprise 75% of the fleet by 2024, positioning AerCap to capitalize on rising air travel demand.[43] Integration efforts focused on harmonizing operations, with no major disruptions reported in initial filings, though the deal's scale drew attention to potential synergies in cost efficiencies and customer overlap management.[43]Impacts of COVID-19 Pandemic
The COVID-19 pandemic triggered a near-total halt in global commercial air travel starting in March 2020, resulting in widespread airline groundings and financial distress that pressured aircraft lessors like AerCap. The company faced increased requests from customers for rent deferrals, lease extensions, and restructurings, with AerCap electing to apply the U.S. Financial Accounting Standards Board's practical expedient for accounting lease concessions related to the pandemic effects beginning in the first quarter of 2020. This led to temporary revenue recognition adjustments under cash accounting for certain modified leases.[46] AerCap recorded significant asset impairments in 2020 attributable to depressed aircraft valuations and uncertain recovery timelines amid the crisis, including charges on 50 aircraft, 9 engines, and 14 helicopters. These contributed to a third-quarter net loss of $850 million, or $6.66 per diluted share, driven primarily by impairment and lease residual value guarantee charges. For the full year 2020, AerCap reported a net loss of $299 million, or $2.34 per diluted share, contrasting with pre-pandemic profitability, though earlier quarters showed resilience with net income of $246 million in the second quarter.[47][48] Despite these challenges, AerCap demonstrated relative stability compared to airlines, avoiding substantial losses from customer bankruptcies or forced repossessions, with over 70% of its fleet unencumbered providing flexibility. The company bolstered liquidity to $11 billion by May 2020 through credit facility drawdowns and other measures, ending the year with more than $9 billion in unrestricted cash, cash equivalents, and undrawn revolving facilities—sufficient to cover over 2.3 times its near-term debt maturities. This positioning supported ongoing operations amid prolonged disruptions, with the firm anticipating lingering effects into 2021.[49][50][51]Response to 2022 Russian Invasion of Ukraine
Following Russia's full-scale invasion of Ukraine on February 24, 2022, AerCap, which had approximately 116 aircraft and 15 engines leased to Russian airlines, terminated all such leases in March 2022 to comply with international sanctions imposed by the United States, European Union, and United Kingdom.[52][53] The company immediately sought to repossess these assets, undertaking active steps where possible, but efforts were thwarted by Russian government measures, including Resolution No. 311 enacted on March 10, 2022, which banned the export or removal of aircraft from Russia without authorization.[54][55] Russia subsequently re-registered many foreign-leased aircraft, including those from AerCap, to its national registry in violation of the Cape Town Convention on international interests in mobile equipment, prompting AerCap to derecognize the assets as lost on its balance sheet and pursue recovery through insurance and legal channels.[56] AerCap filed claims under its aviation insurance policies, distinguishing between "All Risks" and "War and Allied Perils" coverages; the English High Court ruled in June 2025 that the assets qualified as lost under the latter due to governmental restraint and detention perils triggered by sanctions and Russian actions, awarding AerCap approximately $1 billion in indemnity for the affected aircraft and engines.[57][58] This recovery followed partial settlements, including $572 million from a Russian insurer in early 2024 and €112 million in August 2025, though AerCap's original claims exceeded $3.4 billion in value.[56][59] The episode resulted in AerCap booking impairment charges and provisions for the unrecoverable assets, contributing to temporary financial strain amid broader sanctions prohibiting aircraft parts supply to Russia, but insurance recoveries and portfolio diversification mitigated long-term impacts, with the company reporting a 29% return on equity by mid-2025.[60] AerCap's actions aligned with industry peers in condemning the seizures as unlawful expropriations, while continuing to monitor sanctions compliance and potential future repossessions.[61]Financial Performance
Key Financial Metrics and Trends
AerCap's total revenues for fiscal year 2024 amounted to $7,997 million, reflecting a 5% increase from $7,580 million in 2023, with lease revenues contributing $7,004 million, up 2% year-over-year.[62] GAAP net income attributable to common shareholders was $2,099 million ($10.79 per share) in 2024, a decline from $3,136 million ($13.78 per share) in 2023, attributable to reduced non-recurring gains in the latter period; adjusted net income improved to $2,337 million ($12.01 per share).[62] The company achieved record operating cash flows of $5,436 million in 2024, a 3% rise from $5,261 million in 2023, underscoring operational efficiency in asset management and collections.[62] Total debt decreased to $45,295 million by December 31, 2024, from $46,484 million the prior year, aligning with strategic deleveraging amid stable interest costs averaging 4.1% in the fourth quarter.[62]| Metric | 2023 ($ millions) | 2024 ($ millions) | % Change |
|---|---|---|---|
| Total Revenues | 7,580 | 7,997 | +5% |
| Lease Revenues | 6,860 | 7,004 | +2% |
| GAAP Net Income | 3,136 | 2,099 | -33% |
| Adjusted Net Income | N/A | 2,337 | N/A |
| Operating Cash Flow | 5,261 | 5,436 | +3% |
| Total Debt (year-end) | 46,484 | 45,295 | -3% |
Recent Results and Debt Management (2023–2025)
In 2023, AerCap reported full-year revenue of $7.58 billion, a 9.6% increase from 2022, driven by lease revenue growth and recovery from prior pandemic disruptions.[63] Net income reached $3.14 billion, reversing a $726 million loss in 2022, partly due to $1.3 billion in insurance settlements received throughout the year, including over $600 million in the fourth quarter related to repossessed Russian aircraft.[64] [63] The company returned $2.6 billion to shareholders via repurchases of 44.3 million shares at an average price of $59.09.[65] By December 31, 2023, AerCap owned 1,556 aircraft, managed 184 others, and had 338 new aircraft on order.[66] For 2024, revenue rose 5.6% to $8.00 billion, with net income of $2.1 billion and adjusted net income of $2.3 billion, reflecting sustained leasing demand amid fleet optimization post-GECAS integration.[67] [68] Fourth-quarter net income was $671 million. Book value per share increased 13% to $94.57 by year-end, while the adjusted debt/equity ratio improved, supported by cash generation and asset sales.[62] By December 31, 2024, the fleet comprised 1,543 owned aircraft, 179 managed, and 296 on order, with an average age of approximately 5.5 years.[20] In the first half of 2025, AerCap achieved record second-quarter net income of $1,259 million ($7.09 per share), with book value per share rising 15% to $102.99 from June 30, 2024.[60] The company raised its full-year EPS guidance and returned $445 million to shareholders in the second quarter alone, including via a new $500 million repurchase program announced in Q1.[60] [69] Financing activities included $1.5 billion in transactions in Q1 and a $1.2 billion senior notes issuance in September.[69] [70] AerCap's debt management from 2023 to 2025 emphasized deleveraging post-2021 acquisitions, with the adjusted debt/equity ratio declining to 2.4:1 by March 31, 2025, and further to 2.2:1 by June 30, 2025.[69] [71] Average cost of debt stabilized around 4.1% in late 2024 and mid-2025, up slightly from prior periods due to market conditions but aided by refinancing.[62] [60] Credit ratings improved, with S&P and Fitch upgrading to BBB+ in June 2024 and March 2025, respectively, citing diversified funding and a target secured debt below 20% of total assets. [73] Actions included debt exchanges in November 2023 and ongoing repurchases to optimize capital structure.[74]| Year/Period | Adjusted Debt/Equity Ratio | Key Debt Action |
|---|---|---|
| End-2023 | ~3.0:1 (post-merger baseline) | Insurance cash used for deleveraging[62] |
| Q1 2025 | 2.4:1 | $1.5B financing secured[69] |
| Q2 2025 | 2.2:1 | Notes issuance and rating upgrades[71] [70] |