AerCap benefits from $10.7m gain on aircraft sales

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Operating lessor AerCap increased its quarterly gain on sales on aircraft equipment to $10.7 million from $600,000 in the year-earlier period.

The benefit stems from the sale of two Airbus A330, nine Boeing 737-800, one Boeing 737-400 and one Boeing MD-11 freighter aircraft in the year to 30 September, said Aengus Kelly, AerCap’s chief executive officer on a third-quarter earnings call today.

In the year-earlier period, the lessor sold three A330, two Airbus A320, and two Boeing 757 aircraft.

Kelly notes an "uptick" in lease placement activity in Europe during the quarter, as well as a "hardening in the Airbus A320 market". Boeing 737-800 and Airbus A321 aircraft "continue to be in high demand", he says.

AerCap ended the quarter with cash totaling $593 million, down from a balance of $620 million in the year-earlier period. It incurred a $9.2 impairment charge on a Boeing 747-400 during the period.

Kelly says the lessor achieved a 15% return on equity during the three months.