AerCap to invest $15bn in new aircraft by 2020 | News | Airfinance Journal

AerCap to invest $15bn in new aircraft by 2020

Operating lessor AerCap says it will receive 50 new technology aircraft in the second half of this year.

The lessor will take delivery of the first of 50 E190/E195-E2 aircraft during the period, becoming the first lessor for the type.
AerCap’s scheduled deliveries (either through purchase and leasebacks and orders) also include 34 Airbus A320neo family aircraft, four A350-900s, five Boeing 737 Max aircraft and six 787-9s. The lessor expects a third of the deliveries to occur in the third quarter and two-thirds of the deliveries in the final quarter.

Chief executive officer Aengus Kelly says capital expenditure (Capex) in 2018 will reach $6 billion, but the lessor is entering a period of high Capex and asset growth.

“Between now and 2020, AerCap expects to invest $15 billion in new technology aircraft,” says Kelly.

In 2019, AerCap will add 87 new aircraft to its portfolio including 42 Airbus A320neo family aircraft, two A350-900s, 17 737 Max aircraft, 12 787-9s and 14 E190/E195-E2. The 2020 delivery schedule includes 49 Airbus A320neo family aircraft, 27 737 Max aircraft, seven 787-9s and 14 E190/E195-E2. 

In the second quarter of this year the lessor took delivery of 20 aircraft and total capex reached $1.5 billion. AerCap received 15 A320neo family aircraft, one A350-900 and four 787-9s.

Chief financial officer Peter Juhas says liquidity stood at $11.7 billion at 30 June, a record level for the lessor. Along with AerCap's operating cash flows this gives total sources of $14.9 billion. This represents 1.3 times over its cash flow of $11.1 billion over the next 12 months.

Aercap continues to trade older assets and as a result, average fleet age was 6.6 years at the end of the second quarter, compared with 7.3 years a year ago. By 2020 the AerCap average fleet age will be around six years, says Juhas.

Transaction SnapshotAercap | Senior notes | 06-18 | $600m

Financial Close:
05/06/2018
SPV:
AerCap Ireland Capital and AerCap Global Aviation Trust
Value:
$600.00m USD
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