AerCap reports higher Q3 income of $83.6m

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AerCap’s third quarter net income improved 44% to $83.6 million compared with the year-earlier period on higher income from aircraft sales, and fewer defaults and restructurings.

Net interest margin earned on leased assets, or net spread, was $174.8 million in the three months to 30 September, compared with $176.5 million for the same period in 2012, says AerCap in an earnings release today. The small decrease was driven primarily by the sale of its oldest aircraft portfolio , ALS, partially offset by new aircraft purchases.

Net interest margin, as a percentage of average lease assets, was 8.8% for the quarter, unchanged from the same period in 2012.

AerCap’s total revenues increased 4% in the quarter to $279.3 million. Basic lease rents were down 2% to $234.3 million, compared with the same period in 2012.

Average lease assets were $8 billion, unchanged from the third quarter of 2012. Lease revenue for quarter fell 2% to $258 million.

During the quarter, AerCap purchased six aircraft and entered into a sale and leaseback agreement for six additional new Boeing 737-800 aircraft that will be delivered in 2013 and 2014. It also sold one new Airbus A330 aircraft and one Boeing 737-400.

Total owned assets increased 2% to $9.3 billion and total managed aircraft were valued at $2.4 billion at quarter-end.

AerCap closed the quarter with $3.5 billion in committed future aircraft purchases, relating to 47 aircraft.

The portfolio, at quarter end, consisted of 373 aircraft that were owned, on order, under contract or letter of intent, managed or owned by AerDragon, a non-consolidated joint venture.