AerCap posts second-quarter net income of US$246 million, cancels order for 15 Boeing 737 MAX aircraft

AerCap has posted second-quarter net income of US$248 million compared with US$331 million for the same period in 2019.

Basic lease rents were US$948 million for the second-quarter of 2020, compared with US$1,077 million for the same period in 2019. The decrease was primarily due to lease restructurings, transitions and the impact of airline bankruptcies.

Maintenance rents and other receipts were US$224 million for the second quarter of 2020, compared with US$109 million for the same period in 2019. The increase was primarily due to higher maintenance revenue recognized as a result of lease terminations during the second quarter of 2020.

Net gain on sale of assets for the second quarter of 2020 was US$10 million, relating to nine aircraft sold for US$188 million, compared with US$78 million for the same period in 2019, relating to 22 aircraft sold for US$502 million. The decrease was primarily due to the lower volume and composition of asset sales.

Other income for the second quarter of 2020 was US$15 million, compared with US$17 million for the same period in 2019.

In July 2020, AerCap has reached an agreement with Boeing to restructure its order book for Boeing 737 MAX aircraft, including the cancellation of 15 of its Boeing 737 MAX aircraft on order. Following this cancellation, the company has 80 Boeing 737 MAX aircraft on order.

As of June 30, 2020, AerCap’s portfolio consisted of 1,357 aircraft that were owned, on order or managed. The average age of its owned fleet as of June 30, 2020 was 6.4 years (2.7 years for new technology aircraft, 11.7 years for current technology aircraft) and the average remaining contracted lease term was 7.3 years.

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