ALC and AerCap face 'reasonably solid' 1Q but EPS pressure at Aircastle: Wells Fargo

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Wells Fargo anticipates "reasonably solid" first quarter results for two out of three operating lessors it covers, but anticipates headwinds on lease rates due to a Chapter 11 filing for the remaining company.

AerCap and Air Lease Corporation stand to benefit in the first quarter as "remaining exposure to troubled airlines such as India's Kingfisher appears to be manageable," says Wells Fargo research.

However, the research firm anticipates "greater earning per share pressure" at Aircastle given its exposure to two Boeing 747 aircraft on lease to Global Aviation, which filed for bankruptcy protection in February.

The research firm expects "all" lessors will have "positive comments" about the financing environment, particularly the capital markets.