AerCap plunges after Q4 earnings miss; says Russian exposure 'manageable'

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AerCap (NYSE:AER) -12.7% pre-market after posting a wide miss on Q4 adjusted earnings while sales, boosted by the completion of the GECAS acquisition in November, topped estimates.

The world's largest aircraft lessor said it had aircraft and engines on lease to Russia with a net book value of $3.3B prior to the invasion of Ukraine, and it had not yet determined the size of the impairment it would book on its Russia losses, but its exposure was "manageable."

AerCap said it had repossessed and removed from Russia 22 aircraft and three engines that it owned, and is continuing efforts to repossess additional aircraft and engines from former Russian customers.

The company said ~5% of its fleet was on lease to Russian airlines as of year-end 2021.

Q4 net income rose to $88.8M from $28.5M in the year-ago quarter, while revenues rose 39% Y/Y to $1.44B, as basic lease rents jumped 45% to $1.28B.

AerCap shares have slipped 5% over the past year and 14% YTD.