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

Mar. 30, 2022 8:30 AM ETAerCap Holdings N.V. (AER)By: Carl Surran, SA News Editor3 Comments

Passenger airplane getting ready for flight

guvendemir/E+ via Getty Images

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.

Recommended For You

Comments (3)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.