AerCap Holdings N.V. Announces New $500 Million Share Repurchase Program

Rhea-AI Summary

AerCap Holdings N.V. (NYSE: AER) has announced a new $500 million share repurchase program, running through March 31, 2025. This is in addition to the $105 million remaining from a previous program announced in May 2024. The total share repurchase authorizations since March 2023 now amount to $4.4 billion.

CEO Aengus Kelly expressed confidence in the company's aircraft values and outlook, stating that share repurchases are viewed as an attractive use of capital. The program will be funded using cash on hand and cash generated from operations, with the timing and number of shares to be purchased determined by management based on market conditions and other factors.

Positive

• New $500 million share repurchase program authorized
• Total share repurchase authorizations reach $4.4 billion since March 2023
• Management expresses high confidence in aircraft values and company outlook
• Potential for positive shareholder returns through capital return strategy

Negative

• None.

Insights

Financial Analyst

AerCap's new $500 million share repurchase program signals strong financial health and confidence in the company's future. This brings total authorizations to $4.4 billion since March 2023, indicating a robust capital return strategy. The extended timeline until March 2025 provides flexibility in execution.

The additional $105 million remaining from the previous program suggests consistent implementation of buybacks. This aggressive approach to capital return could lead to enhanced earnings per share and potentially boost stock price. However, investors should monitor the impact on the company's liquidity and its ability to invest in growth opportunities.

Market Research Analyst

AerCap's continued share repurchase programs reflect a bullish outlook on the aviation leasing market. The company's confidence in aircraft values suggests potential undervaluation of its stock. This move may be interpreted as a signal that management believes the market is underestimating the company's intrinsic value.

The strategy has led to positive shareholder returns, which could attract more investors and potentially increase demand for the stock. However, the effectiveness of this approach depends on market conditions and the company's ability to generate sufficient cash flow to fund both repurchases and operational needs.

DUBLIN, Sept. 19, 2024 /PRNewswire/ -- AerCap Holdings N.V. ("AerCap") (NYSE: AER) today announced that its Board of Directors has authorized a new $500 million share repurchase program, which will run through March 31, 2025. This program is in addition to the $105 million of capacity remaining under the share repurchase program announced on May 8, 2024, which runs through December 31, 2024.

"Today's announcement takes our share repurchase authorizations to $4.4 billion since March 2023 and continues AerCap's strong track record of capital return," said Aengus Kelly, the Chief Executive Officer of AerCap. "We continue to view share repurchases as an attractive use of capital, driven by a high degree of confidence in our aircraft values and our outlook for the company. This strategy has consistently led to positive shareholder returns."

Repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable U.S. federal securities laws. The timing of repurchases and the exact number of common shares to be purchased will be determined by the company's management, in its discretion, and will depend upon market conditions and other factors. The program will be funded using the company's cash on hand and cash generated from operations. The program may be suspended or discontinued at any time.

About AerCap

AerCap is the global leader in aviation leasing with one of the most attractive order books in the industry. AerCap serves approximately 300 customers around the world with comprehensive fleet solutions. AerCap is listed on the New York Stock Exchange (AER) and is based in Dublin with offices in Shannon, Miami, Singapore, Memphis, Amsterdam, Shanghai, Dubai and other locations.

Forward-Looking Statements

This press release contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are "forward-looking statements". In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "might," "should," "expect," "plan," "intend," "will," "aim," "estimate," "anticipate," "believe," "predict," "potential" or "continue" or the negatives thereof or variations thereon or similar terminology. All statements other than statements of historical fact included in this press release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forward-looking statements, including but not limited to the availability of capital to us and to our customers and changes in interest rates; the ability of our lessees and potential lessees to make lease payments to us; our ability to successfully negotiate flight equipment (which includes aircraft, engines and helicopters) purchases, sales and leases, to collect outstanding amounts due and to repossess flight equipment under defaulted leases, and to control costs and expenses; changes in the overall demand for commercial aviation leasing and aviation asset management services; the continued impacts of the Ukraine Conflict, including the resulting sanctions by the United States, the European Union, the United Kingdom and other countries, on our business and results of operations, financial condition and cash flows; the effects of terrorist attacks on the aviation industry and on our operations; the economic condition of the global airline and cargo industry and economic and political conditions; the impact of current hostilities in the Middle East, or any escalation thereof, on the aviation industry or our business; development of increased government regulation, including travel restrictions, sanctions, regulation of trade and the imposition of import and export controls, tariffs and other trade barriers; a downgrade in any of our credit ratings; competitive pressures within the industry; regulatory changes affecting commercial flight equipment operators, flight equipment maintenance, engine standards, accounting standards and taxes; and disruptions and security breaches affecting our information systems or the information systems of our third-party providers.

As a result, we cannot assure you that the forward-looking statements included in this press release will prove to be accurate or correct. These and other important factors and risks are discussed in AerCap's annual report on Form 20-F and other filings with the SEC. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this press release might not occur. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Except as required by applicable law, we do not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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SOURCE AerCap Holdings N.V.

FAQ

What is the size of AerCap's new share repurchase program?

AerCap (NYSE: AER) has announced a new $500 million share repurchase program.

When does AerCap's new share repurchase program end?

The new $500 million share repurchase program will run through March 31, 2025.

How much has AerCap authorized for share repurchases since March 2023?

AerCap (NYSE: AER) has authorized a total of $4.4 billion for share repurchases since March 2023.

How will AerCap fund its new share repurchase program?

AerCap (NYSE: AER) will fund the program using the company's cash on hand and cash generated from operations.