[6-K] Aercap Holdings N.V. Current Report (Foreign Issuer)
Filing Impact
Filing Sentiment
Form Type
6-K
AerCap’s Q2-25 Form 6-K shows headline results flattered by a one-time $973 M insurance recovery tied to aircraft stranded in Russia. Net income leapt to $1.26 B (vs. $0.45 B Q2-24) and diluted EPS to $7.09 (vs. $2.28). Excluding the recovery, pre-tax profit was ~$407 M. Lease revenue rose 1% to $1.77 B; basic lease rents gained 5% while maintenance rents fell 36%. Net gain on asset sales dropped 56% to $57 M.
Cash rose to $2.70 B (Dec-24: $1.21 B) driven by $2.67 B operating cash flow and $824 M insurance receipts. Debt increased slightly to $46.1 B; undrawn credit lines total $11.3 B. Shareholders’ equity improved to $17.95 B. Leverage (debt/equity) stays elevated at ~2.6×. AerCap repurchased 10.4 M shares YTD at $96.16 average and cancelled 8.5 M, cutting basic shares to 174.3 M. A $0.27 quarterly dividend was declared (payable 4 Sep 25), continuing the ~US$200 M annual payout policy.
The fleet stands at 1,972 aircraft plus >1,500 engines/helicopters with 272 aircraft on order through 2030. Management guides to a 15.5% full-year tax rate. Litigation against operator insurers for a further ~$1.5 B continues; appeal risk exists on the June judgment. Core leasing metrics remain resilient, but growth is modest and results hinge on asset sales and capital allocation.
Il modulo 6-K di AerCap per il secondo trimestre 2025 mostra risultati principali influenzati da un recupero assicurativo una tantum di 973 milioni di dollari legato ad aerei bloccati in Russia. L'utile netto è salito a 1,26 miliardi di dollari (contro 0,45 miliardi nel Q2-24) e l'utile diluito per azione a 7,09 dollari (contro 2,28). Escludendo il recupero, il profitto ante imposte è stato di circa 407 milioni di dollari. I ricavi da leasing sono aumentati dell'1% a 1,77 miliardi di dollari; gli affitti base sono cresciuti del 5%, mentre quelli per la manutenzione sono diminuiti del 36%. Il guadagno netto dalla vendita di asset è calato del 56%, attestandosi a 57 milioni di dollari.
La liquidità è salita a 2,70 miliardi di dollari (dicembre 2024: 1,21 miliardi), grazie a un flusso di cassa operativo di 2,67 miliardi e a 824 milioni di incassi assicurativi. Il debito è aumentato leggermente a 46,1 miliardi; le linee di credito non utilizzate ammontano a 11,3 miliardi. Il patrimonio netto degli azionisti è migliorato a 17,95 miliardi. La leva finanziaria (debito/patrimonio) rimane elevata a circa 2,6×. AerCap ha riacquistato 10,4 milioni di azioni dall'inizio dell'anno a un prezzo medio di 96,16 dollari, cancellandone 8,5 milioni, riducendo le azioni base a 174,3 milioni. È stato dichiarato un dividendo trimestrale di 0,27 dollari (pagabile il 4 settembre 2025), mantenendo la politica di distribuzione annuale di circa 200 milioni di dollari.
La flotta conta 1.972 aeromobili più oltre 1.500 motori/elicotteri, con 272 aeromobili ordinati fino al 2030. La direzione prevede un'aliquota fiscale annuale del 15,5%. Prosegue la causa contro gli assicuratori degli operatori per ulteriori circa 1,5 miliardi di dollari; esiste il rischio di appello sulla sentenza di giugno. I principali indicatori di leasing rimangono solidi, ma la crescita è modesta e i risultati dipendono dalle vendite di asset e dall'allocazione del capitale.
El Formulario 6-K de AerCap para el segundo trimestre de 2025 muestra resultados principales inflados por una recuperación de seguro única de 973 millones de dólares vinculada a aeronaves varadas en Rusia. La utilidad neta saltó a 1.260 millones de dólares (frente a 450 millones en el Q2-24) y las ganancias diluidas por acción a 7,09 dólares (frente a 2,28). Excluyendo la recuperación, la ganancia antes de impuestos fue de aproximadamente 407 millones. Los ingresos por arrendamiento aumentaron un 1% a 1.770 millones; las rentas básicas de arrendamiento crecieron un 5%, mientras que las rentas de mantenimiento cayeron un 36%. La ganancia neta por venta de activos disminuyó un 56% a 57 millones.
El efectivo aumentó a 2.700 millones (dic-24: 1.210 millones) impulsado por un flujo de caja operativo de 2.670 millones y 824 millones recibidos por seguros. La deuda aumentó ligeramente a 46.100 millones; las líneas de crédito no utilizadas suman 11.300 millones. El patrimonio de los accionistas mejoró a 17.950 millones. El apalancamiento (deuda/patrimonio) se mantiene elevado en aproximadamente 2,6×. AerCap recompró 10,4 millones de acciones en lo que va del año a un promedio de 96,16 dólares y canceló 8,5 millones, reduciendo las acciones básicas a 174,3 millones. Se declaró un dividendo trimestral de 0,27 dólares (pagadero el 4 de septiembre de 2025), manteniendo la política anual de pago de unos 200 millones de dólares.
La flota consta de 1.972 aeronaves más de 1.500 motores/helicópteros, con 272 aeronaves en pedido hasta 2030. La dirección prevé una tasa impositiva anual del 15,5%. Continúa la litigación contra los aseguradores de los operadores por unos 1.500 millones adicionales; existe riesgo de apelación sobre el fallo de junio. Los indicadores clave de arrendamiento siguen siendo resistentes, pero el crecimiento es modesto y los resultados dependen de la venta de activos y la asignación de capital.
AerCap의 2025년 2분기 Form 6-K는 러시아에 억류된 항공기와 관련된 일회성 9억 7,300만 달러 보험 회수로 인해 실적이 부풀려진 것을 보여줍니다. 순이익은 12억 6천만 달러로 급증했으며(2024년 2분기 4억 5천만 달러 대비), 희석 주당순이익은 7.09달러(2.28달러 대비)로 증가했습니다. 보험 회수를 제외하면 세전 이익은 약 4억 700만 달러였습니다. 임대 수익은 1% 증가한 17억 7천만 달러였으며, 기본 임대료는 5% 상승한 반면 유지보수 임대료는 36% 감소했습니다. 자산 매각 순이익은 56% 감소한 5,700만 달러였습니다.
현금은 27억 달러로 증가했으며(2024년 12월 12억 1천만 달러), 이는 26억 7천만 달러의 영업 현금 흐름과 8억 2,400만 달러의 보험 수령금에 힘입은 결과입니다. 부채는 소폭 증가해 461억 달러가 되었으며, 미사용 신용 한도는 총 113억 달러입니다. 주주 자본은 179억 5천만 달러로 개선되었습니다. 부채 대 자본 비율은 약 2.6배로 여전히 높은 수준을 유지하고 있습니다. AerCap은 올해 들어 1,040만 주를 주당 평균 96.16달러에 재매입했으며, 850만 주를 소각하여 기본 주식 수를 1억 7,430만 주로 줄였습니다. 분기 배당금 0.27달러가 선언되었으며(2025년 9월 4일 지급 예정), 연간 약 2억 달러의 배당 정책을 지속하고 있습니다.
항공기 수는 1,972대이며, 1,500대 이상의 엔진 및 헬리콥터가 포함되어 있고, 2030년까지 272대의 항공기가 주문되어 있습니다. 경영진은 연간 법인세율을 15.5%로 예상합니다. 운영자 보험사들을 상대로 약 15억 달러 추가 소송이 진행 중이며, 6월 판결에 대한 항소 가능성도 존재합니다. 핵심 임대 지표는 견조하지만 성장은 완만하며, 결과는 자산 매각과 자본 배분에 달려 있습니다.
Le formulaire 6-K d’AerCap pour le deuxième trimestre 2025 présente des résultats principaux gonflés par un recouvrement d’assurance exceptionnel de 973 millions de dollars lié à des avions bloqués en Russie. Le bénéfice net a bondi à 1,26 milliard de dollars (contre 0,45 milliard au T2-24) et le BPA dilué à 7,09 dollars (contre 2,28). Hors ce recouvrement, le bénéfice avant impôts s’est élevé à environ 407 millions. Les revenus de location ont augmenté de 1 % à 1,77 milliard ; les loyers de base ont progressé de 5 % tandis que ceux liés à la maintenance ont chuté de 36 %. Le gain net sur cessions d’actifs a diminué de 56 % à 57 millions.
La trésorerie a augmenté à 2,70 milliards (déc. 24 : 1,21 milliard), portée par un flux de trésorerie opérationnel de 2,67 milliards et 824 millions de recettes d’assurance. La dette a légèrement augmenté à 46,1 milliards ; les lignes de crédit non utilisées totalisent 11,3 milliards. Les capitaux propres se sont améliorés à 17,95 milliards. Le levier financier (dette/capitaux propres) reste élevé à environ 2,6×. AerCap a racheté 10,4 millions d’actions depuis le début de l’année à un prix moyen de 96,16 dollars et annulé 8,5 millions d’actions, réduisant le nombre d’actions de base à 174,3 millions. Un dividende trimestriel de 0,27 dollar a été déclaré (payable le 4 septembre 2025), poursuivant la politique de distribution annuelle d’environ 200 millions de dollars.
La flotte compte 1 972 avions ainsi que plus de 1 500 moteurs/hélicoptères, avec 272 avions commandés jusqu’en 2030. La direction prévoit un taux d’imposition annuel de 15,5 %. Un litige contre les assureurs des opérateurs pour environ 1,5 milliard supplémentaire est en cours ; un risque d’appel existe suite au jugement de juin. Les indicateurs clés de location restent solides, mais la croissance est modérée et les résultats dépendent des ventes d’actifs et de l’allocation du capital.
AerCaps Form 6-K für das zweite Quartal 2025 zeigt Ergebnisse, die durch eine einmalige Versicherungsrückzahlung von 973 Millionen US-Dollar im Zusammenhang mit in Russland festgehaltenen Flugzeugen aufgehellt wurden. Der Nettogewinn stieg auf 1,26 Milliarden US-Dollar (gegenüber 0,45 Milliarden im Q2-24) und das verwässerte Ergebnis je Aktie auf 7,09 US-Dollar (gegenüber 2,28). Ohne die Rückzahlung lag der Gewinn vor Steuern bei etwa 407 Millionen US-Dollar. Die Leasingerlöse stiegen um 1 % auf 1,77 Milliarden US-Dollar; die Basis-Leasingmieten legten um 5 % zu, während die Wartungsmieten um 36 % fielen. Der Nettogewinn aus dem Verkauf von Vermögenswerten sank um 56 % auf 57 Millionen US-Dollar.
Bargeld stieg auf 2,70 Milliarden US-Dollar (Dezember 24: 1,21 Milliarden), getrieben von einem operativen Cashflow von 2,67 Milliarden und 824 Millionen aus Versicherungszahlungen. Die Verschuldung stieg leicht auf 46,1 Milliarden; ungenutzte Kreditlinien belaufen sich auf 11,3 Milliarden. Das Eigenkapital der Aktionäre verbesserte sich auf 17,95 Milliarden. Die Verschuldungsquote (Schulden/Eigenkapital) bleibt mit etwa 2,6× hoch. AerCap hat im laufenden Jahr 10,4 Millionen Aktien zu einem Durchschnittspreis von 96,16 US-Dollar zurückgekauft und 8,5 Millionen Aktien gestrichen, wodurch die Basisaktienzahl auf 174,3 Millionen sank. Eine vierteljährliche Dividende von 0,27 US-Dollar wurde angekündigt (zahlbar am 4. September 2025), womit die jährliche Ausschüttung von rund 200 Millionen US-Dollar fortgesetzt wird.
Die Flotte umfasst 1.972 Flugzeuge sowie über 1.500 Triebwerke/Hubschrauber, mit 272 bestellten Flugzeugen bis 2030. Das Management erwartet eine jährliche Steuerquote von 15,5 %. Die Klage gegen Betreiber-Versicherer über weitere rund 1,5 Milliarden US-Dollar läuft weiter; ein Berufungsrisiko bezüglich des Urteils im Juni besteht. Die Kernleasingkennzahlen bleiben stabil, das Wachstum ist jedoch moderat und die Ergebnisse hängen von Asset-Verkäufen und Kapitalallokation ab.
Positive
- $973 M insurance recovery lifts YTD net income to $1.90 B, a record level for AerCap.
- Operating cash flow surged to $2.67 B, boosting cash balances to $2.70 B.
- Board declared a consistent $0.27 quarterly dividend and executed 10.4 M share buybacks YTD.
- Net book value of flight equipment grew to $58.7 B; orderbook remains robust with 272 aircraft.
Negative
- Lease revenue grew only 1% YoY; maintenance rents fell 36%, indicating weaker secondary income.
- Debt stands at $46.1 B with weighted average coupon ~5%; interest expense up 8% YoY.
- Earnings rely heavily on non-recurring insurance gains; normalised profitability is much lower.
- Appeal risk on the London court judgment and unresolved $1.5 B reinsurance claims add legal uncertainty.
Insights
TL;DR – Insurance windfall drives record EPS; core leasing steady; buybacks accelerate; leverage still high.
The $973 M Russian insurance award converts to pure profit, masking only 1% top-line growth. Core rent yields improved and impairment charges stayed minimal, signalling healthy demand and pricing for narrow-body assets. Management is recycling the cash into share repurchases (6% of float annualised) and steady dividends, a shareholder-friendly stance. Liquidity is ample with $14 B cash + undrawn lines, and orderbook delivery risk appears manageable. However, at 2.6× debt/equity and $46 B nominal debt, valuation remains sensitive to rate moves. Investors should normalise earnings to c.$3 /share per quarter to gauge run-rate profitability.
TL;DR – One-off gain flatters credit metrics; underlying leverage and rate exposure unchanged.
The jump in equity improves headline leverage but does not enhance recurring cash flows. Interest expense rose 8% YoY to $519 M despite partial hedging; 25% of debt is floating. Maintenance rents continue to contract, and gain-on-sale income halved, signalling potential margin compression if traffic softens. Pending $1.5 B reinsurance claims are uncertain and appeals on the current judgment pose downside risk. Rating agencies may view the result as neutral until proceeds are retained or used for deleveraging rather than buybacks.
Il modulo 6-K di AerCap per il secondo trimestre 2025 mostra risultati principali influenzati da un recupero assicurativo una tantum di 973 milioni di dollari legato ad aerei bloccati in Russia. L'utile netto è salito a 1,26 miliardi di dollari (contro 0,45 miliardi nel Q2-24) e l'utile diluito per azione a 7,09 dollari (contro 2,28). Escludendo il recupero, il profitto ante imposte è stato di circa 407 milioni di dollari. I ricavi da leasing sono aumentati dell'1% a 1,77 miliardi di dollari; gli affitti base sono cresciuti del 5%, mentre quelli per la manutenzione sono diminuiti del 36%. Il guadagno netto dalla vendita di asset è calato del 56%, attestandosi a 57 milioni di dollari.
La liquidità è salita a 2,70 miliardi di dollari (dicembre 2024: 1,21 miliardi), grazie a un flusso di cassa operativo di 2,67 miliardi e a 824 milioni di incassi assicurativi. Il debito è aumentato leggermente a 46,1 miliardi; le linee di credito non utilizzate ammontano a 11,3 miliardi. Il patrimonio netto degli azionisti è migliorato a 17,95 miliardi. La leva finanziaria (debito/patrimonio) rimane elevata a circa 2,6×. AerCap ha riacquistato 10,4 milioni di azioni dall'inizio dell'anno a un prezzo medio di 96,16 dollari, cancellandone 8,5 milioni, riducendo le azioni base a 174,3 milioni. È stato dichiarato un dividendo trimestrale di 0,27 dollari (pagabile il 4 settembre 2025), mantenendo la politica di distribuzione annuale di circa 200 milioni di dollari.
La flotta conta 1.972 aeromobili più oltre 1.500 motori/elicotteri, con 272 aeromobili ordinati fino al 2030. La direzione prevede un'aliquota fiscale annuale del 15,5%. Prosegue la causa contro gli assicuratori degli operatori per ulteriori circa 1,5 miliardi di dollari; esiste il rischio di appello sulla sentenza di giugno. I principali indicatori di leasing rimangono solidi, ma la crescita è modesta e i risultati dipendono dalle vendite di asset e dall'allocazione del capitale.
El Formulario 6-K de AerCap para el segundo trimestre de 2025 muestra resultados principales inflados por una recuperación de seguro única de 973 millones de dólares vinculada a aeronaves varadas en Rusia. La utilidad neta saltó a 1.260 millones de dólares (frente a 450 millones en el Q2-24) y las ganancias diluidas por acción a 7,09 dólares (frente a 2,28). Excluyendo la recuperación, la ganancia antes de impuestos fue de aproximadamente 407 millones. Los ingresos por arrendamiento aumentaron un 1% a 1.770 millones; las rentas básicas de arrendamiento crecieron un 5%, mientras que las rentas de mantenimiento cayeron un 36%. La ganancia neta por venta de activos disminuyó un 56% a 57 millones.
El efectivo aumentó a 2.700 millones (dic-24: 1.210 millones) impulsado por un flujo de caja operativo de 2.670 millones y 824 millones recibidos por seguros. La deuda aumentó ligeramente a 46.100 millones; las líneas de crédito no utilizadas suman 11.300 millones. El patrimonio de los accionistas mejoró a 17.950 millones. El apalancamiento (deuda/patrimonio) se mantiene elevado en aproximadamente 2,6×. AerCap recompró 10,4 millones de acciones en lo que va del año a un promedio de 96,16 dólares y canceló 8,5 millones, reduciendo las acciones básicas a 174,3 millones. Se declaró un dividendo trimestral de 0,27 dólares (pagadero el 4 de septiembre de 2025), manteniendo la política anual de pago de unos 200 millones de dólares.
La flota consta de 1.972 aeronaves más de 1.500 motores/helicópteros, con 272 aeronaves en pedido hasta 2030. La dirección prevé una tasa impositiva anual del 15,5%. Continúa la litigación contra los aseguradores de los operadores por unos 1.500 millones adicionales; existe riesgo de apelación sobre el fallo de junio. Los indicadores clave de arrendamiento siguen siendo resistentes, pero el crecimiento es modesto y los resultados dependen de la venta de activos y la asignación de capital.
AerCap의 2025년 2분기 Form 6-K는 러시아에 억류된 항공기와 관련된 일회성 9억 7,300만 달러 보험 회수로 인해 실적이 부풀려진 것을 보여줍니다. 순이익은 12억 6천만 달러로 급증했으며(2024년 2분기 4억 5천만 달러 대비), 희석 주당순이익은 7.09달러(2.28달러 대비)로 증가했습니다. 보험 회수를 제외하면 세전 이익은 약 4억 700만 달러였습니다. 임대 수익은 1% 증가한 17억 7천만 달러였으며, 기본 임대료는 5% 상승한 반면 유지보수 임대료는 36% 감소했습니다. 자산 매각 순이익은 56% 감소한 5,700만 달러였습니다.
현금은 27억 달러로 증가했으며(2024년 12월 12억 1천만 달러), 이는 26억 7천만 달러의 영업 현금 흐름과 8억 2,400만 달러의 보험 수령금에 힘입은 결과입니다. 부채는 소폭 증가해 461억 달러가 되었으며, 미사용 신용 한도는 총 113억 달러입니다. 주주 자본은 179억 5천만 달러로 개선되었습니다. 부채 대 자본 비율은 약 2.6배로 여전히 높은 수준을 유지하고 있습니다. AerCap은 올해 들어 1,040만 주를 주당 평균 96.16달러에 재매입했으며, 850만 주를 소각하여 기본 주식 수를 1억 7,430만 주로 줄였습니다. 분기 배당금 0.27달러가 선언되었으며(2025년 9월 4일 지급 예정), 연간 약 2억 달러의 배당 정책을 지속하고 있습니다.
항공기 수는 1,972대이며, 1,500대 이상의 엔진 및 헬리콥터가 포함되어 있고, 2030년까지 272대의 항공기가 주문되어 있습니다. 경영진은 연간 법인세율을 15.5%로 예상합니다. 운영자 보험사들을 상대로 약 15억 달러 추가 소송이 진행 중이며, 6월 판결에 대한 항소 가능성도 존재합니다. 핵심 임대 지표는 견조하지만 성장은 완만하며, 결과는 자산 매각과 자본 배분에 달려 있습니다.
Le formulaire 6-K d’AerCap pour le deuxième trimestre 2025 présente des résultats principaux gonflés par un recouvrement d’assurance exceptionnel de 973 millions de dollars lié à des avions bloqués en Russie. Le bénéfice net a bondi à 1,26 milliard de dollars (contre 0,45 milliard au T2-24) et le BPA dilué à 7,09 dollars (contre 2,28). Hors ce recouvrement, le bénéfice avant impôts s’est élevé à environ 407 millions. Les revenus de location ont augmenté de 1 % à 1,77 milliard ; les loyers de base ont progressé de 5 % tandis que ceux liés à la maintenance ont chuté de 36 %. Le gain net sur cessions d’actifs a diminué de 56 % à 57 millions.
La trésorerie a augmenté à 2,70 milliards (déc. 24 : 1,21 milliard), portée par un flux de trésorerie opérationnel de 2,67 milliards et 824 millions de recettes d’assurance. La dette a légèrement augmenté à 46,1 milliards ; les lignes de crédit non utilisées totalisent 11,3 milliards. Les capitaux propres se sont améliorés à 17,95 milliards. Le levier financier (dette/capitaux propres) reste élevé à environ 2,6×. AerCap a racheté 10,4 millions d’actions depuis le début de l’année à un prix moyen de 96,16 dollars et annulé 8,5 millions d’actions, réduisant le nombre d’actions de base à 174,3 millions. Un dividende trimestriel de 0,27 dollar a été déclaré (payable le 4 septembre 2025), poursuivant la politique de distribution annuelle d’environ 200 millions de dollars.
La flotte compte 1 972 avions ainsi que plus de 1 500 moteurs/hélicoptères, avec 272 avions commandés jusqu’en 2030. La direction prévoit un taux d’imposition annuel de 15,5 %. Un litige contre les assureurs des opérateurs pour environ 1,5 milliard supplémentaire est en cours ; un risque d’appel existe suite au jugement de juin. Les indicateurs clés de location restent solides, mais la croissance est modérée et les résultats dépendent des ventes d’actifs et de l’allocation du capital.
AerCaps Form 6-K für das zweite Quartal 2025 zeigt Ergebnisse, die durch eine einmalige Versicherungsrückzahlung von 973 Millionen US-Dollar im Zusammenhang mit in Russland festgehaltenen Flugzeugen aufgehellt wurden. Der Nettogewinn stieg auf 1,26 Milliarden US-Dollar (gegenüber 0,45 Milliarden im Q2-24) und das verwässerte Ergebnis je Aktie auf 7,09 US-Dollar (gegenüber 2,28). Ohne die Rückzahlung lag der Gewinn vor Steuern bei etwa 407 Millionen US-Dollar. Die Leasingerlöse stiegen um 1 % auf 1,77 Milliarden US-Dollar; die Basis-Leasingmieten legten um 5 % zu, während die Wartungsmieten um 36 % fielen. Der Nettogewinn aus dem Verkauf von Vermögenswerten sank um 56 % auf 57 Millionen US-Dollar.
Bargeld stieg auf 2,70 Milliarden US-Dollar (Dezember 24: 1,21 Milliarden), getrieben von einem operativen Cashflow von 2,67 Milliarden und 824 Millionen aus Versicherungszahlungen. Die Verschuldung stieg leicht auf 46,1 Milliarden; ungenutzte Kreditlinien belaufen sich auf 11,3 Milliarden. Das Eigenkapital der Aktionäre verbesserte sich auf 17,95 Milliarden. Die Verschuldungsquote (Schulden/Eigenkapital) bleibt mit etwa 2,6× hoch. AerCap hat im laufenden Jahr 10,4 Millionen Aktien zu einem Durchschnittspreis von 96,16 US-Dollar zurückgekauft und 8,5 Millionen Aktien gestrichen, wodurch die Basisaktienzahl auf 174,3 Millionen sank. Eine vierteljährliche Dividende von 0,27 US-Dollar wurde angekündigt (zahlbar am 4. September 2025), womit die jährliche Ausschüttung von rund 200 Millionen US-Dollar fortgesetzt wird.
Die Flotte umfasst 1.972 Flugzeuge sowie über 1.500 Triebwerke/Hubschrauber, mit 272 bestellten Flugzeugen bis 2030. Das Management erwartet eine jährliche Steuerquote von 15,5 %. Die Klage gegen Betreiber-Versicherer über weitere rund 1,5 Milliarden US-Dollar läuft weiter; ein Berufungsrisiko bezüglich des Urteils im Juni besteht. Die Kernleasingkennzahlen bleiben stabil, das Wachstum ist jedoch moderat und die Ergebnisse hängen von Asset-Verkäufen und Kapitalallokation ab.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
| For the month of July 2025 | Commission File Number 001-33159 | ||||
(Translation of Registrant’s Name into English)
AerCap House, 65 St. Stephen’s Green, Dublin D02 YX20, Ireland, +353 1 819 2010
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x | Form 40-F o | ||||
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Other Events
On July 30, 2025, AerCap Holdings N.V. (together with its subsidiaries, “AerCap,” “we,” “us” or the “Company”) furnished its interim financial report for the quarter ended June 30, 2025.
The information contained in this Form 6-K is incorporated by reference into the Company’s Form F-3 Registration Statement File No. 333-282733 and Form S-8 Registration Statements File Nos. 333-194638, 333-194637, 333-180323, 333-165839, and 333-154416, and related Prospectuses, as such Registration Statements and Prospectuses may be amended from time to time.
Dividend
In connection with AerCap’s dividend policy, in July 2025, AerCap’s Board of Directors declared a quarterly cash dividend of $0.27 per share, with a payment date of September 4, 2025, to shareholders of record as of the close of business on August 13, 2025.
The dividend will be subject to Irish dividend withholding tax at a current statutory rate of 25% unless an exemption applies. Pursuant to a confirmation obtained from the Irish Revenue Commissioners, U.S. resident shareholders who hold their shares through the Depository Trust Company (“DTC”) should be exempt from Irish dividend withholding tax provided the address of the beneficial owner of the shares in the records of their broker, or otherwise provided to AerCap’s qualifying intermediary, is in the United States. The confirmation from the Irish Revenue Commissioners is operative for a period of five years until July 25, 2029. Individuals and certain corporate shareholders that are tax resident in a country (other than Ireland) which is a member of the European Union or a country with which Ireland has a double tax treaty in effect (which includes the United States) may be exempt from Irish dividend withholding tax if they provide a relevant declaration as prescribed by the Irish Revenue Commissioners establishing their exemption from Irish dividend withholding tax provided such corporate shareholder is not itself controlled by Irish tax residents.
In addition, the dividend will be subject to Dutch dividend withholding tax (currently at a rate of 15%) for persons who are resident, or deemed to be resident, in the Netherlands (“Dutch resident holders”). To confirm that a shareholder is not a Dutch resident holder, such shareholder must provide an Irish dividend withholding tax relevant declaration as prescribed by the Irish Revenue Commissioners representing that the shareholder is not a Dutch resident holder except that, pursuant to the confirmation from the Irish Revenue Commissioners referred to above, U.S. resident shareholders who hold their shares through the DTC and have a U.S. address of the beneficial owner of the shares in the records of their broker, or that has otherwise been provided to AerCap’s qualifying intermediary, need not provide this declaration form. AerCap intends to presume that shareholders who do not comply with the above requirements are Dutch resident holders.
For a further discussion of Irish and Dutch dividend withholding taxes, see “Irish tax considerations—Dividend withholding tax” and “Dutch withholding tax considerations” in Item 10 of AerCap’s 2024 Annual Report on Form 20-F. The summary provided therein is not exhaustive and shareholders should consult their own tax advisor to determine the Irish and Dutch tax consequences of the dividend in their particular circumstances.
2
INDEX
PART I. | FINANCIAL INFORMATION | 4 | ||||||
Item 1. | Financial Statements (Unaudited) | 4 | ||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 37 | ||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 52 | ||||||
PART II. | OTHER INFORMATION | 54 | ||||||
Item 1. | Legal Proceedings | 54 | ||||||
Item 1A. | Risk Factors | 54 | ||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 55 | ||||||
Item 3. | Defaults Upon Senior Securities | 55 | ||||||
Item 4. | Mine Safety Disclosures | 55 | ||||||
Item 5. | Other Information | 55 | ||||||
Item 6. | Exhibits | 55 | ||||||
Signature | 56 | |||||||
3
PART I. FINANCIAL INFORMATION
| Item 1. Financial Statements (Unaudited) | |||||
Unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 | 5 | ||||
Unaudited Condensed Consolidated Income Statements for the Three and Six Months Ended June 30, 2025 and 2024 | 6 | ||||
Unaudited Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2025 and 2024 | 7 | ||||
Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 | 8 | ||||
Unaudited Condensed Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2025 and 2024 | 11 | ||||
Notes to the Unaudited Condensed Consolidated Financial Statements | 13 | ||||
4
AerCap Holdings N.V. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of June 30, 2025 and December 31, 2024
| Note | June 30, 2025 | December 31, 2024 | |||||||||||||||
| (U.S. Dollars in thousands, except share data) | |||||||||||||||||
| Assets | |||||||||||||||||
| Cash and cash equivalents | 4 | $ | $ | ||||||||||||||
| Restricted cash | 4 | ||||||||||||||||
| Trade receivables | |||||||||||||||||
| Flight equipment held for operating leases, net | 5 | ||||||||||||||||
| Investment in finance leases, net | 6 | ||||||||||||||||
| Flight equipment held for sale | 7 | ||||||||||||||||
| Prepayments on flight equipment | 26 | ||||||||||||||||
| Maintenance rights and lease premium, net | 8 | ||||||||||||||||
| Other intangibles, net | 9 | ||||||||||||||||
| Deferred tax assets | 16 | ||||||||||||||||
| Associated companies | 10 | ||||||||||||||||
| Other assets | 11 | ||||||||||||||||
| Total Assets | $ | $ | |||||||||||||||
| Liabilities and Equity | |||||||||||||||||
| Accounts payable, accrued expenses and other liabilities | 13 | $ | $ | ||||||||||||||
| Accrued maintenance liability | 14 | ||||||||||||||||
| Lessee deposit liability | |||||||||||||||||
| Debt | 15 | ||||||||||||||||
| Deferred tax liabilities | 16 | ||||||||||||||||
| Commitments and contingencies | 26 | ||||||||||||||||
| Total Liabilities | |||||||||||||||||
Ordinary share capital, € | 17, 23 | ||||||||||||||||
| Additional paid-in capital | |||||||||||||||||
Treasury shares, at cost ( | 23 | ( | ( | ||||||||||||||
| Accumulated other comprehensive (loss) income | ( | ||||||||||||||||
| Accumulated retained earnings | |||||||||||||||||
| Total AerCap Holdings N.V. shareholders’ equity | |||||||||||||||||
| Non-controlling interest | |||||||||||||||||
| Total Equity | |||||||||||||||||
| Total Liabilities and Equity | $ | $ | |||||||||||||||
Supplemental balance sheet information—amounts related to assets and liabilities of consolidated Variable Interest Entities (“VIE”) for which creditors do not have recourse to our general credit: | |||||||||||||||||
| Restricted cash | $ | $ | |||||||||||||||
| Flight equipment held for operating leases and held for sale | |||||||||||||||||
| Other assets | |||||||||||||||||
| Accrued maintenance liability | $ | $ | |||||||||||||||
| Debt | |||||||||||||||||
| Other liabilities | |||||||||||||||||
The accompanying notes are an integral part of these Unaudited Financial Statements.
5
AerCap Holdings N.V. and Subsidiaries
Unaudited Condensed Consolidated Income Statements
For the Three and Six Months Ended June 30, 2025 and 2024
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
| Note | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (U.S. Dollars in thousands, except share and per share data) | ||||||||||||||||||||||||||||||||||||||
| Revenues and other income | ||||||||||||||||||||||||||||||||||||||
| Lease revenue: | ||||||||||||||||||||||||||||||||||||||
| Basic lease rents | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Maintenance rents and other receipts | ||||||||||||||||||||||||||||||||||||||
| Total lease revenue | ||||||||||||||||||||||||||||||||||||||
| Net gain on sale of assets | ||||||||||||||||||||||||||||||||||||||
| Other income | 18 | |||||||||||||||||||||||||||||||||||||
| Total Revenues and other income | ||||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 5, 9 | |||||||||||||||||||||||||||||||||||||
Net recoveries related to Ukraine Conflict | 19 | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Asset impairment | 20 | |||||||||||||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||||||||||||
| Loss on debt extinguishment | ||||||||||||||||||||||||||||||||||||||
| Leasing expenses | ||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 21 | |||||||||||||||||||||||||||||||||||||
| Total Expenses | ||||||||||||||||||||||||||||||||||||||
| Loss on investments at fair value | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Income before income taxes and income of investments accounted for under the equity method | ||||||||||||||||||||||||||||||||||||||
| Income tax expense | 16 | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Equity in net earnings of investments accounted for under the equity method | ||||||||||||||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Net (income) loss attributable to non-controlling interest | ( | ( | ||||||||||||||||||||||||||||||||||||
Net income attributable to AerCap Holdings N.V. | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Basic earnings per share | 23 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
| Diluted earnings per share | 23 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Weighted average shares outstanding—basic | 23 | |||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding—diluted | 23 | |||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these Unaudited Financial Statements.
6
AerCap Holdings N.V. and Subsidiaries
Unaudited Condensed Consolidated Statements of Comprehensive Income
For the Three and Six Months Ended June 30, 2025 and 2024
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||
| (U.S. Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||||||
Net (loss) gain on derivatives (Note 12), net of tax of $ | ( | ( | |||||||||||||||||||||||||||||||||
Actuarial loss on pension obligations, net of tax of | ( | ( | |||||||||||||||||||||||||||||||||
| Total other comprehensive (loss) income | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Comprehensive income | |||||||||||||||||||||||||||||||||||
| Comprehensive (income) loss attributable to non-controlling interest | ( | ( | |||||||||||||||||||||||||||||||||
| Total comprehensive income attributable to AerCap Holdings N.V. | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these Unaudited Financial Statements.
7
AerCap Holdings N.V. and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2025 and 2024
| Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (U.S. Dollars in thousands) | ||||||||||||||
| Net income | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | ||||||||||||||
| Net recoveries related to Ukraine Conflict | ( | ( | ||||||||||||
| Asset impairment | ||||||||||||||
| Amortization of debt issuance costs, debt discount, debt premium and lease premium | ||||||||||||||
| Maintenance rights write-off (a) | ||||||||||||||
| Maintenance liability release to income | ( | ( | ||||||||||||
| Net gain on sale of assets | ( | ( | ||||||||||||
| Deferred tax expense | ||||||||||||||
| Share-based compensation | ||||||||||||||
| Collections of finance leases | ||||||||||||||
| Loss on investments at fair value | ||||||||||||||
| Loss on debt extinguishment | ||||||||||||||
| Other | ( | ( | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Trade receivables | ||||||||||||||
| Other assets | ||||||||||||||
| Accounts payable, accrued expenses and other liabilities | ( | ( | ||||||||||||
| Net cash provided by operating activities | ||||||||||||||
| Purchase of flight equipment | ( | ( | ||||||||||||
| Proceeds from sale or disposal of assets | ||||||||||||||
| Prepayments on flight equipment | ( | ( | ||||||||||||
| Cash proceeds from insurance claim settlements | ||||||||||||||
| Other | ( | |||||||||||||
| Net cash used in investing activities | ( | ( | ||||||||||||
| Issuance of debt | ||||||||||||||
| Repayment of debt | ( | ( | ||||||||||||
| Debt issuance and extinguishment costs paid, net of debt premium received | ( | ( | ||||||||||||
| Maintenance payments received | ||||||||||||||
| Maintenance payments returned | ( | ( | ||||||||||||
| Security deposits received | ||||||||||||||
| Security deposits returned | ( | ( | ||||||||||||
| Repurchase of shares and tax withholdings on share-based compensation | ( | ( | ||||||||||||
| Dividends paid on ordinary shares | ( | ( | ||||||||||||
| Net cash provided by (used in) financing activities | ( | |||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | ( | |||||||||||||
| Effect of exchange rate changes | ( | |||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | ||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | $ | ||||||||||||
The accompanying notes are an integral part of these Unaudited Financial Statements.
8
AerCap Holdings N.V. and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows (Continued)
For the Six Months Ended June 30, 2025 and 2024
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| (U.S. Dollars in thousands) | |||||||||||
| Supplemental cash flow information: | |||||||||||
| Interest paid, net of amounts capitalized | $ | $ | |||||||||
| Income taxes paid, net | |||||||||||
(a)Maintenance rights write-off consisted of the following:
| End-of-Lease (“EOL”) and Maintenance Reserve (“MR”) contract maintenance rights expense | $ | $ | |||||||||
| MR contract maintenance rights write-off offset by maintenance liability release | |||||||||||
| EOL contract maintenance rights write-off offset by EOL compensation received | |||||||||||
| Maintenance rights write-off | $ | $ | |||||||||
The accompanying notes are an integral part of these Unaudited Financial Statements.
9
AerCap Holdings N.V. and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows (Continued)
For the Six Months Ended June 30, 2025 and 2024
Non-Cash Investing and Financing Activities
Six Months Ended June 30, 2025:
Flight equipment held for operating leases in the amount of $168 million, net, was reclassified to investment in finance leases, net/inventory.
Flight equipment held for operating leases in the amount of $424 million was reclassified to flight equipment held for sale, net.
Accrued maintenance liability in the amount of $91 million was settled with buyers upon sale or disposal of assets.
Six Months Ended June 30, 2024:
Flight equipment held for operating leases in the amount of $206 million, net, was reclassified to investment in finance leases, net/inventory.
Flight equipment held for operating leases in the amount of $520 million was reclassified to flight equipment held for sale, net.
Accrued maintenance liability in the amount of $3 million was settled with buyers upon sale or disposal of assets.
The accompanying notes are an integral part of these Unaudited Financial Statements.
10
AerCap Holdings N.V. and Subsidiaries
Unaudited Condensed Consolidated Statements of Equity
For the Three Months Ended June 30, 2025 and 2024
| Number of ordinary shares issued | Ordinary share capital | Additional paid-in capital | Treasury shares | Accumulated other comprehensive (loss) | Accumulated retained earnings | AerCap Holdings N.V. shareholders’ equity | Non-controlling interest | Total equity | |||||||||||||||||||||||||||||||||||||||||||||
| (U.S. Dollars in thousands, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2025 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on ordinary shares | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Share cancellation | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares issued, net of tax withholdings | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive (loss) income | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2025 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Number of ordinary shares issued | Ordinary share capital | Additional paid-in capital | Treasury shares | Accumulated other comprehensive income (loss) | Accumulated retained earnings | AerCap Holdings N.V. shareholders’ equity | Non-controlling interest | Total equity | |||||||||||||||||||||||||||||||||||||||||||||
| (U.S. Dollars in thousands, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on ordinary shares | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Share cancellation | ( | ( | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares issued, net of tax withholdings | — | — | ( | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive (loss) income | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2024 | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these Unaudited Financial Statements.
11
AerCap Holdings N.V. and Subsidiaries
Unaudited Condensed Consolidated Statements of Equity (Continued)
For the Six Months Ended June 30, 2025 and 2024
| Number of ordinary shares issued | Ordinary share capital | Additional paid-in capital | Treasury shares | Accumulated other comprehensive income (loss) | Accumulated retained earnings | AerCap Holdings N.V. shareholders’ equity | Non-controlling interest | Total equity | |||||||||||||||||||||||||||||||||||||||||||||
| (U.S. Dollars in thousands, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2024 | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on ordinary shares | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Share cancellation | ( | ( | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares issued, net of tax withholdings | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive (loss) income | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2025 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Number of ordinary shares issued | Ordinary share capital | Additional paid-in capital | Treasury shares | Accumulated other comprehensive income | Accumulated retained earnings | AerCap Holdings N.V. shareholders’ equity | Non-controlling interest | Total equity | |||||||||||||||||||||||||||||||||||||||||||||
| (U.S. Dollars in thousands, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on ordinary shares | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Share cancellation | ( | ( | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares issued, net of tax withholdings | — | — | ( | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2024 | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these Unaudited Financial Statements.
12
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
1. General
The Company
AerCap is the global leader in aviation leasing, with 1,972 aircraft owned, managed or on order, over 1,200 engines (including engines owned and managed by our Shannon Engine Support (“SES”) joint venture), over 300 owned helicopters, and total assets of $74 billion as of June 30, 2025. Our ordinary shares are listed on the New York Stock Exchange under the ticker symbol AER. Our headquarters is located in Dublin, and we have offices in Shannon, Memphis, Miami, Singapore, London, Dubai, Shanghai, Amsterdam and other locations. We also have representative offices at the world’s largest aircraft manufacturers, The Boeing Company (“Boeing”) in Seattle and Airbus S.A.S. (“Airbus”) in Toulouse.
The Condensed Consolidated Financial Statements presented herein include the accounts of AerCap Holdings N.V. and its subsidiaries. AerCap Holdings N.V. was incorporated in the Netherlands as a public limited liability company (“naamloze vennootschap” or “N.V.”) on July 10, 2006.
2. Basis of presentation
General
Our Condensed Consolidated Financial Statements are presented in accordance with Accounting Principles Generally Accepted in the United States of America (“U.S. GAAP”).
We consolidate all companies in which we have effective control and all variable interest entities (“VIEs”) for which we are deemed the Primary Beneficiary (“PB”) under Accounting Standards Codification (“ASC”) 810. All intercompany balances and transactions with consolidated subsidiaries are eliminated. The results of consolidated entities are included from the effective date of control or, in the case of VIEs, from the date that we are or become the PB. The results of subsidiaries sold or otherwise deconsolidated are excluded from the date that we cease to control the subsidiary or, in the case of VIEs, when we cease to be the PB.
Unconsolidated investments where we do not have a controlling financial interest, but over which we have significant influence, are reported using the equity method of accounting.
Our Condensed Consolidated Financial Statements are stated in U.S. dollars, which is our functional currency.
Our interim financial statements have been prepared pursuant to the rules of the U.S. Securities and Exchange Commission (“SEC”) and U.S. GAAP for interim financial reporting, and reflect all adjustments that are necessary to fairly state the results for the interim periods presented. Certain information and footnote disclosures required by U.S. GAAP for complete annual financial statements have been omitted and, therefore, our interim financial statements should be read in conjunction with our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on February 26, 2025. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of those for a full fiscal year.
Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Use of estimates
The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
The use of estimates is or could be a significant factor affecting the reported carrying values of flight equipment, intangible assets, investment in finance leases, net, investments, trade receivables, loans receivable, notes receivable, deferred tax assets, unrecognized tax benefits and maintenance liabilities. Actual results may differ from our estimates under different conditions, sometimes materially.
13
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
2. Basis of presentation (Continued)
Reportable segments
We manage our business and analyze and report our results of operations on the basis of one
3. Summary of significant accounting policies
Our significant accounting policies are described in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on February 26, 2025.
Future application of accounting standards:
Improvements to Income Tax Disclosures
In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09—Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 is intended to enhance the transparency and usefulness of the annual income tax disclosures. The two primary enhancements include disaggregating existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid. The standard is effective for fiscal years beginning after December 15, 2024, and will be adopted for the year ended December 31, 2025. The amendments in ASU 2023-09 should be applied on a prospective basis; however, retrospective application in all prior periods presented in the annual financial statements is permitted. The adoption of ASU 2023-09 is not expected to have a material effect on the Company’s consolidated financial statements.
Disaggregation of Income Statement Expenses
14
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
4. Cash, cash equivalents and restricted cash
Our restricted cash balance was $150 million and $192 million as of June 30, 2025 and December 31, 2024, respectively, and was primarily related to our Export Credit Agency (“ECA”) financings, Export-Import Bank of the United States (“Ex-Im”) financings, our AerFunding revolving credit facility, our Brazilian Development Bank (“BNDES”) financing and other debt. Refer to Note 15—Debt.
The following is a summary of our cash, cash equivalents and restricted cash as of June 30, 2025, December 31, 2024 and June 30, 2024:
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |||||||||||||||
| Cash and cash equivalents | $ | $ | $ | ||||||||||||||
| Restricted cash | |||||||||||||||||
| Total cash, cash equivalents and restricted cash | $ | $ | $ | ||||||||||||||
5. Flight equipment held for operating leases, net
Movements in flight equipment held for operating leases during the six months ended June 30, 2025 and 2024 were as follows:
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Net book value at beginning of period | $ | $ | |||||||||
| Additions | |||||||||||
| Depreciation | ( | ( | |||||||||
| Disposals and transfers to held for sale | ( | ( | |||||||||
| Transfers to/from investment in finance leases, net/inventory | ( | ( | |||||||||
| Recoveries related to Ukraine Conflict (Note 19) | |||||||||||
| Impairments (Note 20) | ( | ( | |||||||||
| Net book value at end of period | $ | $ | |||||||||
| Accumulated depreciation and impairment as of June 30, 2025 and 2024, respectively: | $ | ( | $ | ( | |||||||
6. Investment in finance leases, net
Components of investment in finance leases, net as of June 30, 2025 and December 31, 2024 were as follows:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Future minimum lease payments to be received, net | $ | $ | |||||||||
Estimated residual values of leased flight equipment | |||||||||||
| Less: Unearned income | ( | ( | |||||||||
| Less: Allowance for credit losses (Note 22) | ( | ( | |||||||||
| $ | $ | ||||||||||
During the three months ended June 30, 2025 and 2024, we recognized interest income from investment in finance leases, net of $24 million and $25 million, respectively, included in basic lease rents. During the six months ended June 30, 2025 and 2024, we recognized interest income from investment in finance leases, net of $49 million and $50 million, respectively, included in basic lease rents.
15
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
7. Flight equipment held for sale
As of June 30, 2025, flight equipment with a total net book value of $470 million met the held for sale criteria and was classified as flight equipment held for sale in our Condensed Consolidated Balance Sheet. Aggregate maintenance and security deposit amounts received from the lessees of approximately $24 million will be assumed by the buyers of these aircraft upon consummation of the individual sales transactions.
8. Maintenance rights and lease premium, net
Maintenance rights and lease premium, net consisted of the following as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Maintenance rights | $ | $ | |||||||||
| Lease premium, net | |||||||||||
| $ | $ | ||||||||||
Movements in maintenance rights during the six months ended June 30, 2025 and 2024 were as follows:
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
Maintenance rights at beginning of period | $ | $ | |||||||||
EOL and MR contract maintenance rights expense | ( | ( | |||||||||
MR contract maintenance rights write-off due to maintenance liability release | ( | ( | |||||||||
EOL contract maintenance rights write-off due to cash receipt | ( | ( | |||||||||
| EOL and MR contract maintenance rights write-off due to sale of aircraft | ( | ( | |||||||||
Maintenance rights at end of period | $ | $ | |||||||||
The following tables present details of lease premium assets and related accumulated amortization as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | |||||||||||||||||
| Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||||||||
| Lease premium | $ | $ | ( | $ | |||||||||||||
| December 31, 2024 | |||||||||||||||||
| Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||||||||
| Lease premium | $ | $ | ( | $ | |||||||||||||
Lease premium assets that are fully amortized are removed from the gross carrying amount and accumulated amortization columns in the tables above.
During the three months ended June 30, 2025 and 2024, we recorded amortization expense for lease premium assets of $28 million and $41 million, respectively. During the six months ended June 30, 2025 and 2024, we recorded amortization expense for lease premium assets of $60 million and $83 million, respectively.
16
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
9. Other intangibles, net
Other intangibles, net consisted of the following as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Customer relationships, net | $ | $ | |||||||||
| Other intangible assets | |||||||||||
| $ | $ | ||||||||||
The following tables present details of customer relationships and related accumulated amortization as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | |||||||||||||||||
| Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||||||||
| Customer relationships | $ | $ | ( | $ | |||||||||||||
| December 31, 2024 | |||||||||||||||||
| Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||||||||
| Customer relationships | $ | $ | ( | $ | |||||||||||||
During the three months ended June 30, 2025 and 2024, we recorded amortization expense for customer relationships of $5 11
10. Associated companies
As of June 30, 2025 and December 31, 2024, associated companies accounted for under the equity method of accounting consisted of the following:
% Ownership as of June 30, 2025 | June 30, 2025 | December 31, 2024 | |||||||||||||||
| Shannon Engine Support | $ | $ | |||||||||||||||
AerDragon Aviation Partners Limited and its Subsidiaries (“AerDragon”) | |||||||||||||||||
| Other | |||||||||||||||||
| $ | $ | ||||||||||||||||
17
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
11. Other assets
Other assets consisted of the following as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | December 31, 2024 | |||||||||||||
| Loans receivable, net of allowance for credit losses (a) | $ | $ | ||||||||||||
| Straight-line rents, prepaid expenses and other | ||||||||||||||
| Notes receivable, net of allowance for credit losses (b) | ||||||||||||||
| Lease incentives | ||||||||||||||
| Inventory | ||||||||||||||
| Operating lease right of use assets, net | ||||||||||||||
| Derivative assets (Note 12) | ||||||||||||||
| Investments | ||||||||||||||
| Other assets and receivables, net | ||||||||||||||
| $ | $ | |||||||||||||
(a)As of June 30, 2025 and December 31, 2024, we had $0.3 million and $0.5 million, respectively, allowance for credit losses on loans receivable. Refer to Note 22—Allowance for credit losses for further details. During the six months ended June 30, 2025 and 2024, we recognized interest income from loans receivable, net of allowance for credit losses of $26 million and $29 million, respectively, included in other income.
(b)As of June 30, 2025 and December 31, 2024, we had $175 million and $200 million, respectively, allowance for credit losses on notes receivable. Refer to Note 22—Allowance for credit losses for further details.
18
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
12. Derivative financial instruments
We have entered into interest rate derivatives to hedge the current and future interest rate payments on our variable rate debt. These derivative financial instruments can include interest rate swaps, caps, floors, U.S. treasury locks, options and forward contracts.
As of June 30, 2025, we had interest rate contracts outstanding, with underlying variable benchmark interest rates of Secured Overnight Financing Rate (“SOFR” or “Term SOFR”) and U.S. Treasuries.
Some of our agreements with derivative counterparties require a two-way cash collateralization of derivative fair values. We did no
The counterparties to our interest rate derivatives are primarily major international financial institutions. We continually monitor our positions and the credit ratings of the counterparties involved and limit the amount of credit exposure to any one party. We could be exposed to potential losses due to the credit risk of non-performance by these counterparties. We have not experienced any losses to date.
Our derivative assets are recorded in other assets and our derivative liabilities are recorded in accounts payable, accrued expenses and other liabilities in our Condensed Consolidated Balance Sheets.
The following tables present notional amounts and fair values of derivatives outstanding as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Notional amount (a) | Fair value | Notional amount (a) | Fair value | ||||||||||||||||||||
| Derivative assets not designated as accounting cash flow hedges: | |||||||||||||||||||||||
| Interest rate contracts | $ | $ | $ | $ | |||||||||||||||||||
Derivative assets designated as accounting cash flow hedges: | |||||||||||||||||||||||
| Interest rate contracts | $ | $ | $ | $ | |||||||||||||||||||
| Total derivative assets | $ | $ | |||||||||||||||||||||
(a)The notional amount is excluded for interest rate contracts which are not yet effective.
| June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Notional amount (a) | Fair value | Notional amount (a) | Fair value | ||||||||||||||||||||
Derivative liabilities not designated as cash flow hedges: | |||||||||||||||||||||||
| Interest rate contracts | $ | $ | $ | $ | |||||||||||||||||||
Derivative liabilities designated as accounting cash flow hedges: | |||||||||||||||||||||||
| Interest rate contracts | $ | $ | $ | $ | |||||||||||||||||||
| Total derivative liabilities | $ | $ | |||||||||||||||||||||
(a)The notional amount is excluded for interest rate contracts which are not yet effective.
19
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
12. Derivative financial instruments (Continued)
We recorded the following in other comprehensive gain or loss related to derivative financial instruments for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
Effective portion of change in fair market value of derivatives designated as accounting cash flow hedges: | |||||||||||||||||||||||
| Interest rate contracts | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Derivative premium and amortization | |||||||||||||||||||||||
| Income tax effect | ( | ( | |||||||||||||||||||||
| Net (loss) gain on derivatives, net of tax | $ | ( | $ | $ | ( | $ | |||||||||||||||||
We expect to reclassify approximately $20 million from accumulated other comprehensive income (“AOCI”) as a reduction in interest expense in our Condensed Consolidated Income Statements over the next 12 months.
The following table presents the effects of gains or losses related to derivatives recorded in interest expense in our Condensed Consolidated Income Statements for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Derivatives not designated as accounting hedges: | |||||||||||||||||||||||
| Interest rate contracts | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Derivatives designated as accounting hedges: | |||||||||||||||||||||||
| Reclassification of amounts previously recorded within AOCI to interest expense | ( | ||||||||||||||||||||||
| Net gain (loss) recognized in interest expense | $ | $ | ( | $ | $ | ||||||||||||||||||
20
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
13. Accounts payable, accrued expenses and other liabilities
Accounts payable, accrued expenses and other liabilities consisted of the following as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | December 31, 2024 | |||||||||||||
| Deferred revenue | $ | $ | ||||||||||||
| Accounts payable and accrued expenses | ||||||||||||||
| Accrued interest | ||||||||||||||
| Derivative liabilities (Note 12) | ||||||||||||||
| Operating lease liabilities | ||||||||||||||
| $ | $ | |||||||||||||
14. Accrued maintenance liability
Movements in accrued maintenance liability during the six months ended June 30, 2025 and 2024 were as follows:
| Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Accrued maintenance liability at beginning of period | $ | $ | ||||||||||||
| Maintenance payments received | ||||||||||||||
| Maintenance payments returned | ( | ( | ||||||||||||
| Release to income upon sale | ( | ( | ||||||||||||
| Release to income other than upon sale | ( | ( | ||||||||||||
| Lessor contribution, top-ups and other | ( | ( | ||||||||||||
| Accrued maintenance liability at end of period | $ | $ | ||||||||||||
21
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
15. Debt
As of June 30, 2025, the principal amount of our outstanding indebtedness totaled $46.4 billion, which excluded debt issuance costs, debt discounts and debt premium of $243 million, and our undrawn lines of credit were $11.3 billion, availability of which is subject to certain conditions, including compliance with certain financial covenants. As of June 30, 2025, we remained in compliance with the financial covenants across our various debt obligations.
The following table provides a summary of our indebtedness as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||
| Debt obligation | Collateral (number of aircraft and helicopters) | Commitment | Undrawn amounts | Amount outstanding | Weighted average interest rate (a) | Maturity | Amount outstanding | |||||||||||||||||||||||||||||||||||||
| Unsecured | ||||||||||||||||||||||||||||||||||||||||||||
AerCap Trust (b) & AICDC (c) Notes | $ | $ | $ | % | 2025-2041 | $ | ||||||||||||||||||||||||||||||||||||||
| Revolving credit facilities (d) | % | 2027-2028 | ||||||||||||||||||||||||||||||||||||||||||
| Other unsecured debt | % | 2027-2032 | ||||||||||||||||||||||||||||||||||||||||||
| TOTAL UNSECURED | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Secured | ||||||||||||||||||||||||||||||||||||||||||||
| Export credit facilities (e) | % | 2026-2036 | ||||||||||||||||||||||||||||||||||||||||||
Institutional secured term loans & secured portfolio loans (f) | % | 2025-2034 | ||||||||||||||||||||||||||||||||||||||||||
AerFunding Revolving Credit Facility | % | 2029 | ||||||||||||||||||||||||||||||||||||||||||
| Other secured debt (g) | % | 2026-2041 | ||||||||||||||||||||||||||||||||||||||||||
| Fair value adjustment | ||||||||||||||||||||||||||||||||||||||||||||
| TOTAL SECURED | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Subordinated | ||||||||||||||||||||||||||||||||||||||||||||
Subordinated Notes | % | 2055-2065 | ||||||||||||||||||||||||||||||||||||||||||
| TOTAL SUBORDINATED | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Debt issuance costs, debt discounts and debt premium | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
(a)The weighted average interest rate for our floating rate debt of $11.4 billion is calculated based on the applicable U.S. dollar SOFR rate, as of the most recent interest payment date of the respective debt, and excludes the impact of related derivative financial instruments which we hold to hedge our exposure to floating interest rates, as well as any amortization of debt issuance costs, debt discounts and debt premium. The institutional secured term loans and secured portfolio loans also contain base rate interest alternatives.
(b)AerCap Global Aviation Trust, a Delaware Statutory Trust (“AerCap Trust”).
(c)AerCap Ireland Capital Designated Activity Company, a designated activity company with limited liability incorporated under the laws of Ireland (“AICDC”).
(d)Asia Revolver and Citi Revolvers (the “Revolving credit facilities”).
(e)An additional $1.1 billion of commitment has been approved by the Export Credit Agencies, subject to customary conditions at drawdown.
(f)In addition to the 200 aircraft, 13 engines are pledged as collateral.
(g)In addition to the ten aircraft, 74 engines are pledged as collateral.
22
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
15. Debt (Continued)
Additional details of the principal terms of our indebtedness can be found in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on February 26, 2025. The material changes to our indebtedness since the filing of that report, except for scheduled repayments, are described below.
AerCap Trust & AICDC Notes
In January 2025, AerCap Trust and AICDC co-issued $750 million aggregate principal amount of 4.875 % Senior Notes due 2028 and $750 million aggregate principal amount of 5.375 % Senior Notes due 2031.
2056 AGAT/AICDC Junior Subordinated Notes
In April 2025, AerCap Trust and AICDC co-issued $500 million aggregate principal amount of fixed-rate reset junior subordinated notes due 2056 (the “2056 AGAT/AICDC Junior Subordinated Notes”). The 2056 AGAT/AICDC Junior Subordinated Notes currently bear interest at a fixed interest rate of 6.500 % and, from January 31, 2031 (the “First Reset Date”), will bear interest at a rate equal to the five-year U.S. Treasury Rate plus 2.441 %, to be reset on each subsequent five-year anniversary.
2045 Junior Subordinated Notes
In June 2025, AerCap Trust redeemed in full the $500 million aggregate principal amount of its 6.500 % fixed-to-floating rate junior subordinated notes due 2045 (the “2045 Junior Subordinated Notes”), at a redemption price equal to 100 % of the principal amount thereof plus accrued and unpaid interest.
Other unsecured debt
In April 2025, we prepaid an $850 million unsecured term loan with a maturity of April 2026. We simultaneously amended and extended another unsecured facility. This facility was upsized from $545 million to $1.5 billion and its maturity date was extended from March 2026 to January 2029.
16. Income taxes
Our effective tax rate was 12.2 % and 13.3 % for the three and six months ended June 30, 2025, and 15.5 % and 14.8 % for the three and six months ended June 30, 2024.
During the six months ended June 30, 2025, we recorded approximately $146 million of income tax expense due to the recognition of net recoveries related to the Ukraine Conflict and approximately $41 million of income tax benefit due to the reversal of a Pillar 2 provision from the prior year primarily due to clarifying guidance. During the six months ended June 30, 2024, our income tax expense was reduced by $8 million in respect of a non-recurring tax deduction from a prior period that became available during the six months ended June 30, 2024.
The effective tax rate is impacted by the source and amount of earnings among our various tax jurisdictions, permanent tax differences relative to pre-tax income or loss, and certain other discrete items. Our effective tax rate in any period can be impacted by revisions to the estimated full-year rate. Excluding any discrete items, our effective tax rate for the full year 2025 is expected to be 15.5 %.
23
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
17. Equity
Share repurchase programs
The following table presents our share repurchase programs approved by our Board of Directors from January 1, 2023 through June 30, 2025:
| Program approval date | Program end date | Authorized amount ($) | Program completion date | |||||||||||||||||
| March 2023 | September 30, 2023 | March 13, 2023 | ||||||||||||||||||
| April 2023 | September 30, 2023 | September 14, 2023 | ||||||||||||||||||
| July 2023 | December 31, 2023 | September 14, 2023 | ||||||||||||||||||
| September 2023 | December 31, 2023 | November 16, 2023 | ||||||||||||||||||
| October 2023 | March 31, 2024 | January 12, 2024 | ||||||||||||||||||
| December 2023 | March 31, 2024 | March 8, 2024 | ||||||||||||||||||
| February 2024 | September 30, 2024 | August 5, 2024 | ||||||||||||||||||
| May 2024 | December 31, 2024 | November 14, 2024 | ||||||||||||||||||
| September 2024 | December 31, 2025 | March 7, 2025 | ||||||||||||||||||
| February 2025 | December 31, 2025 | Not yet completed | ||||||||||||||||||
| April 2025 | December 31, 2025 | Not yet completed | ||||||||||||||||||
During the three months ended June 30, 2025, we repurchased 4.7 million of our ordinary shares under our share repurchase programs at an average price of $94.03 per ordinary share. During the six months ended June 30, 2025, we repurchased an aggregate of 10.4 million of our ordinary shares under our share repurchase programs at an average price of $96.16 per ordinary share.
During the six months ended June 30, 2025, we cancelled 8.5 million ordinary shares which were acquired through the share repurchase programs in accordance with authorizations obtained from the Company’s shareholders.
Dividends on ordinary shares
In May 2024, we adopted a dividend policy pursuant to which we intend to pay quarterly cash dividends on our ordinary shares in an aggregate annual amount of approximately $200 million, or approximately $50 million per quarter, subject to quarterly approval by our Board of Directors. We expect to pay a cash dividend on a quarterly basis going forward, subject to the Board’s consideration of, among other things, market conditions and our financial performance and cash flows.
In February 2025, our Board of Directors declared a quarterly cash dividend of $0.27 per share, with a payment date of April 3, 2025, to shareholders of record as of the close of business on March 12, 2025.
In April 2025, our Board of Directors declared a quarterly cash dividend of $0.27 per share, with a payment date of June 5, 2025, to shareholders of record as of the close of business on May 14, 2025.
In July 2025, our Board of Directors declared a quarterly cash dividend of $0.27 per share, with a payment date of September 4, 2025, to shareholders of record as of the close of business on August 13, 2025.
18. Other income
Other income consisted of the following for the three and six months ended June 30, 2025, and 2024:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Interest and other income | $ | $ | $ | $ | |||||||||||||||||||
| Management fees | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
24
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
19. Net (recoveries) charges related to Ukraine Conflict
On February 24, 2022, Russia launched a large-scale military invasion of Ukraine and has since been engaged in a broad military conflict with Ukraine (the “Ukraine Conflict”). In response to the Ukraine Conflict and ongoing related hostilities, the United States, the European Union, the United Kingdom and other countries have imposed broad, far-reaching sanctions against Russia, certain Russian persons and certain activities involving Russia or Russian persons (the “Sanctions”).
In compliance with all applicable sanctions in March 2022, we terminated the leasing of all of our aircraft and engines with Russian airlines.
The Ukraine Conflict, the Sanctions and the actions of our former Russian lessees and the Russian government together have represented an unusual and infrequent event and therefore the related net (recoveries) charges are classified separately on our Condensed Consolidated Income Statements.
During 2022, we recognized a pre-tax net charge of $2.7 billion to our earnings, comprised of write-offs and impairments of flight equipment, which were partially offset by the derecognition of lease-related assets and liabilities (including maintenance rights and lease premium intangible assets, maintenance liabilities, security deposits and other balances) and the collection of letter of credit proceeds. We recognized a total loss write-off with respect to our assets that remain in Russia and Ukraine, and impairment losses with respect to the assets we have recovered from Russian and Ukrainian airlines. The termination of the leasing of our leased fleet in Russia also resulted in reduced revenues and operating cash flows.
During the three months ended June 30, 2025, we recognized recoveries of $973 million pursuant to the June 11, 2025, judgment from the London Commercial Court in respect of our claim against the insurers under our contingent and possessed insurance policy (“C&P Policy”). Following recoveries of $1.3 billion in 2023 and $195 million in 2024 (including $23 million recovered during the six months ended June 30, 2024), this award brings our total pre-tax recoveries relating to the Ukraine Conflict to approximately $2.5 billion. The claims against the insurers and reinsurers under our former Russian lessees’ insurance and reinsurance policies remain ongoing in the London Commercial Court. Refer to Note 26—Commitments and Contingencies for further details on these legal proceedings.
Net recoveries related to Ukraine Conflict consisted of the following for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (U.S. Dollars in millions) | |||||||||||||||||||||||
| Net recoveries of flight equipment | $ | $ | $ | $ | ( | ||||||||||||||||||
| Insurance proceeds | ( | ( | |||||||||||||||||||||
| Net recoveries related to Ukraine Conflict | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
20. Asset impairment
Our long-lived assets include flight equipment held for operating lease and definite-lived intangible assets. We test long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. We perform event-driven impairment assessments of our flight equipment held for operating lease each quarter.
25
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
21. Selling, general and administrative expenses
Selling, general and administrative expenses consisted of the following for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Personnel expenses | $ | $ | $ | $ | |||||||||||||||||||
| Share-based compensation | |||||||||||||||||||||||
| Travel expenses | |||||||||||||||||||||||
| Professional services | |||||||||||||||||||||||
| Office expenses | |||||||||||||||||||||||
| Other expenses | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
22. Allowance for credit losses
Movements in the allowance for credit losses during the six months ended June 30, 2025 and 2024 were as follows:
| Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Investment in finance leases | Notes receivable | Loans receivable | Total | Total | ||||||||||||||||||||||||||||
| Allowance for credit losses at beginning of period | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period decrease in provision for expected credit losses | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Allowance for credit losses at end of period | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
26
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
23. Earnings per share
Basic Earnings Per Share (“EPS”) is calculated by dividing net income by the weighted average of our ordinary shares outstanding, which excludes 4,051,509 and 4,975,247 shares of unvested restricted stock as of June 30, 2025 and 2024, respectively. In general, for the calculation of diluted EPS, the weighted average of our ordinary shares outstanding for basic EPS is adjusted by the effect of dilutive securities provided under our equity compensation plans. No 1,517 and 7,017 for the three and six months ended June 30, 2024, respectively, because the effect of including those shares in the calculation would have been anti-dilutive.
The computations of basic and diluted EPS for the three and six months ended June 30, 2025 and 2024 were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||
| Net income for the computation of basic EPS | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Weighted average ordinary shares outstanding—basic | |||||||||||||||||||||||||||||||||||
| Basic EPS | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||
| Net income for the computation of diluted EPS | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Weighted average ordinary shares outstanding—diluted | |||||||||||||||||||||||||||||||||||
| Diluted EPS | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
The computations of ordinary shares outstanding, excluding shares of unvested restricted stock, as of June 30, 2025 and December 31, 2024 were as follows:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Number of ordinary shares | |||||||||||
| Ordinary shares issued | |||||||||||
| Treasury shares | ( | ( | |||||||||
| Ordinary shares outstanding | |||||||||||
| Shares of unvested restricted stock | ( | ( | |||||||||
| Ordinary shares outstanding, excluding shares of unvested restricted stock | |||||||||||
27
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
24. Variable interest entities
We use many forms of entities to achieve our leasing and financing business objectives and we have participated to varying degrees in the design and formation of these entities. Our involvement in VIEs varies and includes being a passive investor in the VIE with involvement from other parties, managing and structuring all of the VIE’s activities, or being the sole shareholder of the VIE.
During the six months ended June 30, 2025, we did not provide any financial support to any of our VIEs that we were not contractually obligated to provide.
Consolidated VIEs
As of June 30, 2025 and December 31, 2024, substantially all assets and liabilities presented in our Condensed Consolidated Balance Sheets were held in consolidated VIEs.
We have determined that we are the PB of these entities because we control and manage all aspects of these entities, including directing the activities that most significantly affect the entities’ economic performance, absorb the majority of the risks and rewards of these entities and guarantee the activities of these entities.
The assets of our consolidated VIEs that can only be used to settle obligations of these entities, and the liabilities of these VIEs for which creditors do not have recourse to our general credit, are disclosed in our Condensed Consolidated Balance Sheets under Supplemental balance sheet information. Further details of debt held by our consolidated VIEs are disclosed in Note 15—Debt.
Wholly-owned ECA and Ex-Im financing vehicles
We have created certain wholly-owned subsidiaries for the purpose of purchasing flight equipment and obtaining financing secured by such flight equipment. The secured debt is guaranteed by the European, Canadian and Brazilian ECAs and the Export-Import Bank of the United States. These entities meet the definition of a VIE because they do not have sufficient equity to operate without subordinated financial support from us in the form of intercompany notes.
Other secured financings
We have created a number of wholly-owned subsidiaries for the purpose of obtaining secured financings. These entities meet the definition of a VIE because they do not have sufficient equity to operate without subordinated financial support from us in the form of intercompany notes.
Wholly-owned leasing entities
We have created wholly-owned subsidiaries for the purpose of facilitating aircraft leases with airlines. These entities meet the definition of a VIE because they do not have sufficient equity to operate without subordinated financial support from us in the form of intercompany notes, which serve as equity.
Limited recourse financing structures
We have established entities to obtain secured financings for the purchase of aircraft in which we have variable interests. These entities meet the definition of a VIE because they do not have sufficient equity to operate without subordinated financial support from us in the form of intercompany notes. The loans of these entities are non-recourse to us except under limited circumstances.
AerFunding
We hold a 5 % equity investment and 100 % of the subordinated notes (“AerFunding Class E-1 Notes”) in AerFunding.
As of June 30, 2025, AerFunding had $1.0 billion outstanding under a secured revolving credit facility and $2.1 billion of AerFunding Class E-1 Notes outstanding due to us.
28
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
24. Variable interest entities (Continued)
Non-consolidated VIEs
Non-consolidated VIEs are investments in which we have determined that we do not have control and are not the PB. We do have significant influence and, accordingly, we account for our investments in non-consolidated VIEs under the equity method of accounting.
The following table presents our maximum exposure to loss in non-consolidated VIEs as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | December 31, 2024 | ||||||||||
Carrying value of debt and equity investments | $ | $ | |||||||||
The maximum exposure to loss represents the amount that would be absorbed by us in the event that all of our assets held in the VIEs, for which we are not the PB, had no value.
Other variable interest entities
We have variable interests in other entities in which we have determined we are not the PB because we do not have the power to direct the activities that most significantly affect the entities’ economic performance.
29
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
25. Related party transactions
Equity Method Investments
SES
SES is a 50 % joint venture between AerCap and Safran Aircraft Engines. During the three and six months ended June 30, 2025, we recognized lease rental income from SES of $53 million and $100 million, respectively. During the three and six months ended June 30, 2024, we recognized lease rental income from SES of $34 million and $66 million, respectively. As of June 30, 2025, $21 million was payable to SES with respect to insurance proceeds awarded to AerCap.
Other related parties
Other related parties include our associated companies as detailed in Note 10—Associated companies. The following table presents amounts received from, or paid to, other related parties for management fees, dividends and contributions for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Management fees and other | $ | $ | $ | $ | |||||||||||||||||||
| Dividends | |||||||||||||||||||||||
| Contributions | ( | ( | |||||||||||||||||||||
Einn Volant Aircraft Leasing Holdings Ltd. (“EVAL”)
26. Commitments and contingencies
Flight equipment on order
As of June 30, 2025, we had commitments to purchase 272 new aircraft scheduled for delivery through 2030. These commitments are primarily based upon purchase agreements with Boeing, Airbus and Embraer S.A. (“Embraer”). These agreements establish the pricing formulas (including adjustments for certain contractual escalation provisions) and various other terms with respect to the purchase of aircraft. Under certain circumstances, we have the right to alter the mix of aircraft types ultimately acquired. As of June 30, 2025, we also had commitments to purchase 46 engines for delivery through 2027 and 17 new helicopters for delivery through 2026.
30
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
26. Commitments and contingencies (Continued)
Prepayments on flight equipment include prepayments of our forward order flight equipment and other balances held by the flight equipment manufacturers. Movements in prepayments on flight equipment during the six months ended June 30, 2025 and 2024 were as follows:
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Prepayments on flight equipment at beginning of period | $ | $ | |||||||||
| Prepayments and additions during the period, net | |||||||||||
| Interest paid and capitalized during the period | |||||||||||
| Prepayments and capitalized interest applied to the purchase of flight equipment | ( | ( | |||||||||
| Prepayments on flight equipment at end of period | $ | $ | |||||||||
Legal proceedings
General
In the ordinary course of our business, we are a party to various legal actions, which we believe are incidental to the operations of our business. The Company regularly reviews the possible outcome of such legal actions, and accrues for such legal actions at the time a loss is probable and the amount of the loss can be estimated. In addition, the Company also reviews indemnities and insurance coverage, where applicable. Based on information currently available, we believe the potential outcome of those cases where we are able to estimate reasonably possible losses, and our estimate of the reasonably possible losses exceeding amounts already recognized, on an aggregated basis, is immaterial to our Condensed Consolidated Financial Statements.
Contingent and possessed insurance policy litigation and operator insurance and reinsurance policies litigation
On June 9, 2022, AerCap Ireland Limited (“AerCap Ireland”) (as representative claimant on its own behalf and on behalf of all other insureds under its C&P Policy) commenced a claim in the Commercial Court in London, England against the insurers under its C&P Policy in respect of aircraft and spare engines owned by AerCap Ireland and its affiliates (including spare engines owned and managed by a related party) and three managed aircraft, all formerly leased to Russian airlines at the time of Russia’s invasion of Ukraine. On June 11, 2025, the Commercial Court awarded AerCap Ireland approximately $1.0 billion under the Aviation “War and Allied Perils” Coverage section of its C&P Policy in respect of this claim. As a result of this judgment, for the three months ended June 30, 2025, we recognized recoveries related to the Ukraine Conflict of $973 million. All questions of interest on the judgment amount and costs have been adjourned to a “consequentials” hearing to be fixed in September 2025. On June 27, 2025, the “War Risks” insurers of the C&P Policy filed applications with the London Commercial Court seeking permission to appeal the June 11, 2025 decision. AerCap Ireland is challenging those applications. We await a ruling on whether an appeal will be allowed to proceed and, if so, on what grounds.
31
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
26. Commitments and contingencies (Continued)
In parallel with the C&P Policy claim, in 2023 and 2024 AerCap Ireland and certain affiliates of AerCap Ireland commenced claims in the Commercial Court in London, England against various Russian insurers under the Russian airlines’ insurance policies (the “Operator Insurance Policies”) and against various reinsurers under reinsurance policies of the Russian airlines’ insurance policies (the “Operator Reinsurance Policies”) in respect of the aircraft and engines formerly leased to Russian airlines at the time of Russia’s invasion of Ukraine (the “Operator Reinsurance Proceedings”). In March 2024, the Commercial Court in London rejected the challenge to its jurisdiction brought by certain reinsurers in respect of the claims under the Operator Reinsurance Policies. As of June 30, 2025, the claims of AerCap Ireland and its affiliates in the Operator Reinsurance Proceedings were for an aggregate amount of approximately $1.5 billion plus interest principally against the “War Risks” reinsurers under the Operator Reinsurance Policies, before allowances are made for any potential reductions arising from the June 11, 2025 judgment in the C&P Policy claim, the available limits under the respective Operator Reinsurance Policies and any sums to which the relevant insurers under the C&P Policy may be entitled pursuant to subrogated or other rights. The Operator Reinsurance Proceedings are currently scheduled for a trial starting in October 2026. Insurance settlement discussions remain ongoing with respect to several of our claims under the Operator Reinsurance Proceedings. However, it is uncertain whether any of these discussions will result in any insurance settlement or receipt of insurance settlement proceeds and, if so, in what amount. In particular, it remains uncertain whether the necessary approvals and funding to complete any such further insurance settlements can be obtained.
We intend to continue to vigorously pursue our claims under the Operator Reinsurance Proceedings. However, the collection, timing and amount of any potential recoveries are uncertain and we have not recognized any claim receivables as of June 30, 2025, in respect of these Operator Reinsurance Proceedings.
VASP litigation
We are party to a group of related cases arising from the leasing of 13 aircraft and three spare engines to Viação Aerea de São Paulo (“VASP”), a Brazilian airline. Following VASP’s defaults on its lease obligations in 1992, we repossessed our aircraft and engines. VASP challenged this and, in 1996, the Appellate Court of the State of São Paulo (“TJSP”) ruled that the aircraft and engines should be returned or that VASP could recover proven damages arising from the repossession. Since then, we have defended this case in the Brazilian courts through various motions and appeals. In 2017, a Brazilian court decided that VASP had suffered no damages as a result of the contested repossession of our equipment. VASP’s subsequent appeals have been denied to date. A further appeal by VASP remains pending. We believe, however, and we have been advised, that it is not probable that VASP will ultimately be able to recover damages from us even if VASP prevailed on the issue of liability. The outcome of the legal process is, however, uncertain. The ultimate amount of damages, if any, payable to VASP cannot reasonably be estimated at this time. We continue to actively pursue all courses of action that may reasonably be available to us and intend to defend our position vigorously.
32
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
27. Fair value measurements
The Company determines fair value based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy as described below. Where limited or no observable market data exists, fair value measurements for assets and liabilities are primarily based on management’s own estimates and are calculated based upon the economic and competitive environment, the characteristics of the asset or liability and other such factors. Therefore, the results may not be realized in actual sale or immediate settlement of the asset or liability.
The degree of judgment used in measuring the fair value of a financial and non-financial asset or liability generally correlates with the level of pricing observability. We classify our fair value measurements based on the observability and significance of the inputs used in making the measurement, as provided below:
Level 1 — Quoted prices available in active markets for identical assets or liabilities as of the reported date.
Level 2 — Observable market data. Inputs include quoted prices for similar assets, liabilities (risk adjusted) and market-corroborated inputs, such as market comparables, interest rates, yield curves and other items that allow value to be determined.
Level 3 — Unobservable inputs from our own assumptions about market risk developed based on the best information available, subject to cost-benefit analysis. Inputs may include our own data.
Fair value measurements are classified in their entirety based on the lowest level of input that is significant to their fair value measurement.
Assets and liabilities measured at fair value on a recurring basis
As of June 30, 2025 and December 31, 2024, our derivative portfolio consisted of interest rate derivatives. The fair value of derivatives is based on dealer quotes for identical instruments. We have also considered the credit rating and risk of the counterparty of the derivative contract based on quantitative and qualitative factors. As such, the valuation of these instruments was classified as Level 2. As of June 30, 2025 and December 31, 2024, we held investments at fair value of $25 million and $75 million, respectively. The valuation of these investments was primarily classified as Level 1, based on quoted market price.
33
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
27. Fair value measurements (Continued)
The following tables present our financial assets and liabilities that we measured at fair value on a recurring basis by level within the fair value hierarchy as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | |||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Derivative assets | $ | $ | $ | $ | |||||||||||||||||||
| Investments, at fair value | |||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Derivative liabilities | $ | $ | $ | $ | |||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Derivative assets | $ | $ | $ | $ | |||||||||||||||||||
| Investments, at fair value | |||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Derivative liabilities | $ | $ | $ | $ | |||||||||||||||||||
Assets and liabilities measured at fair value on a non-recurring basis
We measure the fair value of our flight equipment and certain definite-lived intangible assets on a non-recurring basis, when U.S. GAAP requires the application of fair value, including when events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable.
Additional details of recoverability assessments performed on our flight equipment and certain definite-lived intangible assets are described in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on February 26, 2025.
Management develops the assumptions used in the fair value measurements. Therefore, the fair value measurements of flight equipment and definite-lived intangible assets are classified as Level 3 valuations.
Flight equipment
Inputs to non-recurring fair value measurements categorized as Level 3
We use the income approach to measure the fair value of flight equipment, which is based on the present value of estimated future cash flows. Key inputs to the income approach include the discount rate, current contractual lease cash flows, projected future non-contractual lease or sale cash flows, extended to the end of the flight equipment’s estimated holding period in its highest and best use, and a contractual or estimated disposition value.
34
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
27. Fair value measurements (Continued)
The current contractual lease cash flows are based on the in-force lease rates. The projected future non-contractual lease cash flows are estimated based on the flight equipment type, age, and the airframe and engine configuration of the flight equipment. The projected non-contractual lease cash flows are applied to follow-on lease terms, which are estimated based on the age of the flight equipment at the time of re-lease and are assumed through the estimated holding period of the flight equipment. The estimated holding period is the period over which future cash flows are assumed to be generated. Shorter holding periods can result when a potential sale or future disassembly of flight equipment for the sale of its parts (“part-out”) of individual flight equipment has been contracted for, or is likely. In instances of a potential sale or part-out, the holding period is based on the estimated sale or part-out date. The disposition value is generally estimated based on flight equipment type. In situations where the flight equipment will be disposed of, the disposition value assumed is based on an estimated part-out value or the contracted sale price.
The estimated future cash flows, as described above, are then discounted to present value. The discount rate used is based on the flight equipment type and incorporates assumptions market participants would use regarding the likely debt and equity financing components, and the required returns of those financing components.
The significant unobservable inputs utilized in the fair value measurement of flight equipment are the discount rate and the non-contractual cash flows. The discount rate is affected by movements in the flight equipment funding markets, including fluctuations in required rates of return in debt and equity, and loan to value ratios. The non-contractual cash flows represent management’s estimate of the non-contractual cash flows over the remaining life of the flight equipment. An increase in the discount rate would decrease the fair value measurement of the flight equipment, while an increase in the estimated non-contractual cash flows would increase the fair value measurement of the flight equipment.
Fair value disclosures of financial instruments
The fair value of restricted cash and cash and cash equivalents approximates their carrying value because of their short-term nature (Level 1). The fair value of our long-term unsecured debt is estimated using quoted market prices for similar or identical instruments, depending on the frequency and volume of activity in the market. The fair value of our long-term secured debt is estimated using a discounted cash flow analysis based on current market interest rates and spreads for debt with similar characteristics (Level 2). Derivatives are recognized in our Condensed Consolidated Balance Sheets at their fair value. The fair value of derivatives is based on dealer quotes for identical instruments. We have also considered the credit rating and risk of the counterparties of the derivative contracts based on quantitative and qualitative factors (Level 2).
35
AerCap Holdings N.V. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)
(U.S. Dollars in thousands or as otherwise stated, except share and per share data)
27. Fair value measurements (Continued)
As of June 30, 2025 and December 31, 2024, we held investments at fair value of $25 million and $75 million, respectively. The valuation of these investments were primarily classified as Level 1, based on quoted market price.
As of June 30, 2025 and December 31, 2024, loans receivable carried at amortized cost had estimated fair values of $613 million and $625 million, respectively, and were classified as Level 3.
As of June 30, 2025 and December 31, 2024, notes receivable carried at amortized cost had estimated fair values of $306 million and $402 million, respectively, and were classified as Level 3.
All of our financial instruments are carried at amortized cost, other than our derivatives and investments which are measured at fair value on a recurring basis. The carrying amounts and fair values of our most significant financial instruments as of June 30, 2025 and December 31, 2024 were as follows:
| June 30, 2025 | |||||||||||||||||||||||||||||
| Carrying value | Fair value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Restricted cash | |||||||||||||||||||||||||||||
| Loans receivable | |||||||||||||||||||||||||||||
| Notes receivable | |||||||||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||||||||
| Investments, at fair value | |||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | |||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Debt | $ | (a) | $ | $ | $ | $ | |||||||||||||||||||||||
| Derivative liabilities | |||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | |||||||||||||||||||||||||
(a)Excludes debt issuance costs, debt discounts and debt premium.
| December 31, 2024 | |||||||||||||||||||||||||||||
| Carrying value | Fair value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Restricted cash | |||||||||||||||||||||||||||||
| Loans receivable | |||||||||||||||||||||||||||||
| Notes receivable | |||||||||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||||||||
| Investments, at fair value | |||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | |||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Debt | $ | (a) | $ | $ | $ | $ | |||||||||||||||||||||||
| Derivative liabilities | |||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | |||||||||||||||||||||||||
(a)Excludes debt issuance costs, debt discounts and debt premium.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read this discussion in conjunction with our unaudited Condensed Consolidated Financial Statements and the related notes included in this Interim Report. Our financial statements are presented in accordance with U.S. GAAP, and are presented in U.S. dollars. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Special note about forward-looking statements
This report includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements largely on our current beliefs and projections about future events and financial trends affecting our business. Many important factors, in addition to those discussed in this report, could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things:
•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 hostilities in the Middle East, or any escalation thereof, on the aviation industry or our business;
•trade tensions, including U.S. tariffs and retaliatory measures by some countries, and the resulting geopolitical uncertainty;
•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;
•disruptions and security breaches affecting our information systems or the information systems of our third-party providers; and
•the risks set forth or referred to in “Part II. Other Information—Item 1A. Risk Factors” included below.
The words “believe,” “may,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made and we undertake no obligation to update publicly or to revise any forward-looking statements because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances described in this report might not occur and are not guarantees of future performance.
37
Flight equipment portfolio
We are the industry leader across all areas of aviation leasing with a portfolio consisting of 3,508 aircraft, engines (including engines owned and managed by our SES joint venture) and helicopters that were owned, on order or managed as of June 30, 2025. We provide a wide range of assets for lease, including narrowbody and widebody aircraft, regional jets, freighters, engines and helicopters. We focus on acquiring in-demand flight equipment at attractive prices, funding them efficiently, hedging interest rate risk prudently and using our platform to deploy these assets with the objective of delivering superior risk-adjusted returns. We believe that by applying our expertise, we will be able to identify and execute on a broad range of market opportunities that we expect will generate attractive returns for our investors. We have the infrastructure, expertise and resources to execute a large number of diverse transactions in a variety of market conditions. Our teams of dedicated marketing and asset trading professionals have been successful in leasing and managing our asset portfolio. During the six months ended June 30, 2025, we executed 319 aviation asset transactions.
The following table presents our flight equipment portfolio by type as of June 30, 2025:
| Type | Number of owned assets | % Net Book Value | Number of managed assets (b) | Number of assets on order | Total assets owned, managed and on order | |||||||||||||||||||||||||||
| Passenger Aircraft | 1,443 | 83 | % | 171 | 272 | 1,886 | ||||||||||||||||||||||||||
| Airbus A220 Family | 19 | 1 | % | 6 | — | 25 | ||||||||||||||||||||||||||
| Airbus A320neo Family | 423 | 31 | % | 26 | 132 | 581 | ||||||||||||||||||||||||||
| Airbus A320 Family | 367 | 6 | % | 55 | — | 422 | ||||||||||||||||||||||||||
| Airbus A330neo Family | 12 | 2 | % | 2 | — | 14 | ||||||||||||||||||||||||||
| Airbus A330 | 45 | 1 | % | 8 | — | 53 | ||||||||||||||||||||||||||
| Airbus A350 | 41 | 7 | % | 6 | — | 47 | ||||||||||||||||||||||||||
| Boeing 737 MAX | 73 | 5 | % | 8 | 108 | 189 | ||||||||||||||||||||||||||
| Boeing 737NG | 224 | 7 | % | 59 | — | 283 | ||||||||||||||||||||||||||
| Boeing 777-200ER / 300-ER | 45 | 3 | % | — | — | 45 | ||||||||||||||||||||||||||
| Boeing 787 | 111 | 18 | % | 1 | 15 | 127 | ||||||||||||||||||||||||||
| Embraer E190 / E195 / E2 | 61 | 2 | % | — | 12 | 73 | ||||||||||||||||||||||||||
| Other (a) | 22 | — | — | 5 | 27 | |||||||||||||||||||||||||||
| Freighter Aircraft | 81 | 3 | % | 5 | — | 86 | ||||||||||||||||||||||||||
| Airbus A321 | 6 | — | — | — | 6 | |||||||||||||||||||||||||||
| Boeing 737 | 58 | 2 | % | 5 | — | 63 | ||||||||||||||||||||||||||
| Boeing 767 / 777 | 17 | 1 | % | — | — | 17 | ||||||||||||||||||||||||||
| Engines | 467 | 9 | % | 695 | 46 | 1,208 | ||||||||||||||||||||||||||
| Helicopters | 311 | 5 | % | — | 17 | 328 | ||||||||||||||||||||||||||
| Total | 2,302 | 100 | % | 871 | 335 | 3,508 | ||||||||||||||||||||||||||
(a)Other includes 22 owned aircraft (including five Embraer E170/175 aircraft; four Boeing 767 aircraft and 13 ATR and De Havilland Canada DHC-8-400 aircraft) and five regional jet aircraft on order.
(b)Number of managed engines includes SES owned and managed engines as of June 30, 2025. In addition, SES had 95 engines on order as of June 30, 2025.
38
Aircraft portfolio
As of June 30, 2025, we owned 1,524 aircraft and managed 176 aircraft. As of June 30, 2025, we had commitments to purchase 272 new aircraft scheduled for delivery through 2030. As of June 30, 2025, the weighted average age of our 1,524 owned aircraft fleet, weighted by net book value, was 7.6 years. As of June 30, 2025, 1,503 of our 1,524 owned aircraft were on lease and 21 aircraft were off-lease. As of July 25, 2025, of the 21 aircraft, 12 were re-leased or under commitments for re-lease, two aircraft were designated for sale or part-out, three aircraft were being marketed for re-lease and four aircraft were sold. The aircraft which were designated for sale or part-out or marketed for re-lease represented less than 1% of the aggregate net book value of our fleet. During the three and six months ended June 30, 2025, our owned aircraft utilization rate was 99%, calculated based on the number of days each aircraft was on lease, weighted by the net book value of the aircraft. Approximately 1% of our owned aircraft were undergoing or designated for cargo conversion during the three and six months ended June 30, 2025 and were therefore not calculated as utilized.
During the six months ended June 30, 2025, we had the following activity related to aircraft:
| Held for operating leases | Investment in finance leases, net | Held for sale | Total owned aircraft | |||||||||||||||||||||||
| Number of owned aircraft at beginning of period | 1,420 | 101 | 22 | 1,543 | ||||||||||||||||||||||
| Aircraft purchases | 24 | — | — | 24 | ||||||||||||||||||||||
| Aircraft reclassified to held for sale | (15) | — | 15 | — | ||||||||||||||||||||||
| Aircraft sold or designated for part-out (a) | (15) | (8) | (20) | (43) | ||||||||||||||||||||||
| Aircraft reclassified to/from investment in finance leases, net | (5) | 5 | — | — | ||||||||||||||||||||||
| Number of owned aircraft at end of period | 1,409 | 98 | 17 | 1,524 | ||||||||||||||||||||||
(a)Includes three aircraft that were reclassified to inventory and a total loss.
Critical accounting estimates
There have been no significant changes to our critical accounting estimates from those disclosed in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on February 26, 2025.
39
Comparative results of operations
Results of operations for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024
| Three Months Ended June 30, | Increase/ (Decrease) | ||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (U.S. Dollars in thousands) | |||||||||||||||||||||||
| Revenues and other income | |||||||||||||||||||||||
| Lease revenue: | |||||||||||||||||||||||
| Basic lease rents | $ | 1,652,669 | $ | 1,567,526 | $ | 85,143 | |||||||||||||||||
| Maintenance rents and other receipts | 114,969 | 180,036 | (65,067) | ||||||||||||||||||||
| Total lease revenue | 1,767,638 | 1,747,562 | 20,076 | ||||||||||||||||||||
| Net gain on sale of assets | 57,098 | 129,459 | (72,361) | ||||||||||||||||||||
| Other income | 62,016 | 81,124 | (19,108) | ||||||||||||||||||||
| Total Revenues and other income | 1,886,752 | 1,958,145 | (71,393) | ||||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Depreciation and amortization | 668,932 | 636,419 | 32,513 | ||||||||||||||||||||
Net recoveries related to Ukraine Conflict | (972,822) | — | (972,822) | ||||||||||||||||||||
| Asset impairment | 2,369 | 27,686 | (25,317) | ||||||||||||||||||||
| Interest expense | 518,866 | 478,282 | 40,584 | ||||||||||||||||||||
| Loss on debt extinguishment | 1,982 | 7,008 | (5,026) | ||||||||||||||||||||
| Leasing expenses | 94,539 | 172,791 | (78,252) | ||||||||||||||||||||
| Selling, general and administrative expenses | 170,830 | 125,333 | 45,497 | ||||||||||||||||||||
| Total Expenses | 484,696 | 1,447,519 | (962,823) | ||||||||||||||||||||
| Loss on investments at fair value | (22,533) | (18,207) | (4,326) | ||||||||||||||||||||
Income before income taxes and income of investments accounted for under the equity method | 1,379,523 | 492,419 | 887,104 | ||||||||||||||||||||
| Income tax expense | (168,366) | (76,346) | (92,020) | ||||||||||||||||||||
Equity in net earnings of investments accounted for under the equity method | 48,052 | 32,094 | 15,958 | ||||||||||||||||||||
| Net income | $ | 1,259,209 | $ | 448,167 | $ | 811,042 | |||||||||||||||||
| Net income attributable to non-controlling interest | — | (1) | 1 | ||||||||||||||||||||
Net income attributable to AerCap Holdings N.V. | $ | 1,259,209 | $ | 448,166 | $ | 811,043 | |||||||||||||||||
Basic lease rents. The increase in basic lease rents of $85 million, or 5%, was attributable to:
•the acquisition of assets between April 1, 2024 and June 30, 2025, with an aggregate net book value of $7.8 billion on their respective acquisition dates, resulting in an increase in basic lease rents of $156 million;
partially offset by
•the sale of assets between April 1, 2024 and June 30, 2025 with an aggregate net book value of $2 billion on their respective sale dates, resulting in a decrease in basic lease rents of $43 million; and
•a decrease in basic lease rents of $28 million primarily due to lower power-by-the-hour (“PBH”) rent, redeliveries, lease terminations and lease extensions at lower rates. The accounting for extensions requires the remaining rental payments to be recorded on a straight-line basis over the remaining term of the original lease plus any extension period.
40
Maintenance rents and other receipts. The decrease in maintenance rents and other receipts of $65 million, or 36%, was attributable to:
•a decrease of $47 million in regular maintenance rents, primarily due to lower EOL compensation and other receipts; and
•a decrease of $18 million in maintenance rents and other receipts from lease terminations and restructurings.
Net gain on sale of assets. The decrease in net gain on sale of assets of $72 million was primarily due to the volume and composition of asset sales. During the three months ended June 30, 2025, we sold 18 assets for sale proceeds of $374 million and during the three months ended June 30, 2024, we sold 31 assets for sale proceeds of $793 million.
Other income. The decrease in other income of $19 million was primarily due to lower interest income recognized during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Depreciation and amortization. The increase in depreciation and amortization of $33 million, or 5%, was primarily due to a higher average lease assets balance during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Net recoveries related to Ukraine Conflict. During the three months ended June 30, 2025, we recognized net recoveries of $973 million in respect of an award by the London Commercial Court for an indemnity under our C&P Policy. Please refer to “Part I. Financial Information—Item 1. Financial Statements (Unaudited)—Note 19—Net (recoveries) charges related to Ukraine Conflict.”
Asset impairment. For the three months ended June 30, 2025, we recognized asset impairment charges of $2 million, primarily related to lease amendments which were fully offset by related maintenance revenue. During the three months ended June 30, 2024, we recognized asset impairment charges of $28 million, primarily related to lease amendments or lease terminations which were fully or partially offset by maintenance revenue.
Interest expense. The increase in interest expense of $41 million, or 8%, was primarily attributable to:
•a $28 million increase in interest expense due to an increase in the average cost of debt for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The average cost of debt, excluding the effect of mark-to-market movements on interest rate derivatives, debt issuance costs, upfront fees and other impacts, was 4.1% during the three months ended June 30, 2025, compared to 3.8% during the three months ended June 30, 2024. Please refer to “Part I. Financial Information—Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP measures and metrics” for further information on our average cost of debt;
•a $6 million increase in interest expense attributable to mark-to-market movement on interest rate derivatives. For the three months ended June 30, 2025, we recognized a loss of $11 million related to mark-to-market movements on interest rate derivatives, compared to a loss of $5 million recognized during the three months ended June 30, 2024; and
•an increase in the average outstanding debt balance from $46.0 billion during the three months ended June 30, 2024, to $46.7 billion during the three months ended June 30, 2025, resulting in a $7 million increase in interest expense.
41
Leasing expenses. The decrease in leasing expenses of $78 million, or 45%, was primarily due to a $26 million decrease in our allowance for credit losses, $36 million of lower expenses related to flight equipment transition costs and other leasing expenses, $31 million of lower airline default costs and $8 million of lower maintenance rights asset amortization, partially offset by $23 million of higher lessor maintenance contributions.
Selling, general and administrative expenses. The increase in selling, general and administrative expenses of $45 million, or 36%, was primarily driven by higher share-based compensation expenses due to upfront recognition of certain expenses.
Income tax expense. The effective tax rate was 12.2% and 15.5% for the three months ended June 30, 2025 and 2024, respectively. During the three months ended June 30, 2025, we recorded approximately $146 million of income tax expense due to the recognition of net recoveries related to the Ukraine Conflict and approximately $41 million of income tax benefit due to the reversal of a Pillar 2 provision from the prior year primarily due to clarifying guidance.
The effective tax rate is impacted by the source and amount of earnings among our various tax jurisdictions, permanent tax differences relative to pre-tax income or loss, and certain other discrete items. Our effective tax rate in any period can be impacted by revisions to the estimated full-year rate.
Equity in net earnings of investments accounted for under the equity method. The increase in equity in net earnings of investments accounted for under the equity method of $16 million was primarily driven by higher earnings from our investments.
42
Results of operations for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024
| Six Months Ended June 30, | Increase/ (Decrease) | ||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (U.S. Dollars in thousands) | |||||||||||||||||||||||
| Revenues and other income | |||||||||||||||||||||||
| Lease revenue: | |||||||||||||||||||||||
| Basic lease rents | $ | 3,301,730 | $ | 3,153,157 | $ | 148,573 | |||||||||||||||||
| Maintenance rents and other receipts | 261,460 | 359,496 | (98,036) | ||||||||||||||||||||
| Total lease revenue | 3,563,190 | 3,512,653 | 50,537 | ||||||||||||||||||||
| Net gain on sale of assets | 234,016 | 289,039 | (55,023) | ||||||||||||||||||||
| Other income | 166,578 | 174,541 | (7,963) | ||||||||||||||||||||
| Total Revenues and other income | 3,963,784 | 3,976,233 | (12,449) | ||||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Depreciation and amortization | 1,328,667 | 1,269,897 | 58,770 | ||||||||||||||||||||
Net recoveries related to Ukraine Conflict | (972,822) | (22,749) | (950,073) | ||||||||||||||||||||
| Asset impairment | 5,609 | 30,356 | (24,747) | ||||||||||||||||||||
| Interest expense | 1,021,726 | 969,797 | 51,929 | ||||||||||||||||||||
| Loss on debt extinguishment | 1,982 | 7,020 | (5,038) | ||||||||||||||||||||
| Leasing expenses | 175,284 | 321,405 | (146,121) | ||||||||||||||||||||
| Selling, general and administrative expenses | 283,931 | 244,625 | 39,306 | ||||||||||||||||||||
| Total Expenses | 1,844,377 | 2,820,351 | (975,974) | ||||||||||||||||||||
| Loss on investments at fair value | (23,928) | (4,684) | (19,244) | ||||||||||||||||||||
Income before income taxes and income of investments accounted for under the equity method | 2,095,479 | 1,151,198 | 944,281 | ||||||||||||||||||||
| Income tax expense | (279,339) | (170,455) | (108,884) | ||||||||||||||||||||
Equity in net earnings of investments accounted for under the equity method | 85,930 | 71,634 | 14,296 | ||||||||||||||||||||
| Net income | $ | 1,902,070 | $ | 1,052,377 | $ | 849,693 | |||||||||||||||||
| Net (income) loss attributable to non-controlling interest | (1) | 3 | (4) | ||||||||||||||||||||
Net income attributable to AerCap Holdings N.V. | $ | 1,902,069 | $ | 1,052,380 | $ | 849,689 | |||||||||||||||||
Basic lease rents. The increase in basic lease rents of $149 million, or 5%, was attributable to:
•the acquisition of assets between January 1, 2024 and June 30, 2025, with an aggregate net book value of $8.8 billion on their respective acquisition dates, resulting in an increase in basic lease rents of $317 million;
partially offset by
•the sale of assets between January 1, 2024 and June 30, 2025 with an aggregate net book value of $2.6 billion on their respective sale dates, resulting in a decrease in basic lease rents of $99 million; and
•a decrease in basic lease rents of $69 million primarily due to lower power-by-the-hour (“PBH”) rent, as well as redeliveries, lease terminations and lease extensions at lower rates. The accounting for extensions requires the remaining rental payments to be recorded on a straight-line basis over the remaining term of the original lease plus any extension period.
43
Maintenance rents and other receipts. The decrease in maintenance rents and other receipts of $98 million, or 27%, was attributable to:
•a decrease of $78 million in regular maintenance rents, primarily due to lower EOL compensation and other receipts; and
•a decrease of $20 million in maintenance rents and other receipts from lease terminations and restructurings.
Net gain on sale of assets. The decrease in net gain on sale of assets of $55 million was primarily due to the volume and composition of asset sales. During the six months ended June 30, 2025, we sold 53 assets for sale proceeds of $1.1 billion and during the six months ended June 30, 2024, we sold 74 assets for proceeds of $1.7 billion.
Other income. The decrease in other income of $8 million was primarily due to lower interest income recognized, partially offset by higher proceeds from unsecured claims during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.
Depreciation and amortization. The increase in depreciation and amortization of $59 million was primarily due to a higher average lease assets balance during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.
Net recoveries related to Ukraine Conflict. During the six months ended June 30, 2025, we recognized net recoveries of $973 million in respect of an award by the London Commercial Court for an indemnity under our C&P Policy. During the six months ended June 30, 2024, we recognized recoveries of $23 million in relation to an aircraft that was in Ukraine at the beginning of the Ukraine Conflict and subsequently extracted. Please refer to “Part I. Financial Information—Item 1. Financial Statements (Unaudited)—Note 19—Net (recoveries) charges related to Ukraine Conflict.”
Asset impairment. For the six months ended June 30, 2025, we recognized asset impairment charges of $6 million primarily related to lease amendments or sales transactions which were fully offset by related maintenance revenue. During the six months ended June 30, 2024, we recognized asset impairment charges of $30 million primarily related to sales transactions, lease amendments or lease terminations which were fully or partially offset by related maintenance revenue.
Interest expense. The increase in interest expense of $52 million, or 5%, was primarily attributable to:
•a $42 million increase in interest expense due to an increase in the average cost of debt for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The average cost of debt, excluding the effect of mark-to-market movements on interest rate derivatives, debt issuance costs, upfront fees and other impacts, was 4.1% during the six months ended June 30, 2025, compared to 3.9% during the six months ended June 30, 2024. Please refer to “Part I. Financial Information—Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP measures and metrics” for further information on our average cost of debt;
•a $7 million increase in interest expense attributable to mark-to-market movements on interest rate derivatives. For the six months ended June 30, 2025, we recognized a loss of $15 million related to mark-to-market movements on interest rate derivatives, compared to a loss of $8 million recognized during the six months ended June 30, 2024; and
•an increase in the average outstanding debt balance from $46.3 billion during the six months ended June 30, 2024 to $46.4 billion during the six months ended June 30, 2025, resulting in a $3 million increase in interest expense.
44
Leasing expenses. The decrease in leasing expenses of $146 million was primarily due to a $26 million decrease in our allowance for credit losses, $18 million of lower maintenance rights asset amortization, $33 million of lower airline default costs and $83 million of lower expenses related to flight equipment transition costs and other leasing expenses, partially offset by $14 million of higher lessor maintenance contributions.
Selling, general and administrative expenses. The increase in selling, general and administrative expenses of $39 million, or 16%, was primarily driven by higher share-based compensation expenses due to upfront recognition of certain expenses.
Income tax expense. The effective tax rate was 13.3% and 14.8% for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025, we recorded approximately $146 million of income tax expense due to the recognition of net recoveries related to the Ukraine Conflict and approximately $41 million of income tax benefit due to the reversal of a Pillar 2 provision from the prior year primarily due to clarifying guidance. During the six months ended June 30, 2024, our income tax expense was reduced by $8 million in respect of a non-recurring tax deduction from a prior period that became available during the six months ended June 30, 2024.
The effective tax rate is impacted by the source and amount of earnings among our various tax jurisdictions, permanent tax differences relative to pre-tax income or loss, and certain other discrete items. Our effective tax rate in any period can be impacted by revisions to the estimated full-year rate. Excluding any discrete items, our effective tax rate for the full year 2025 is expected to be 15.5%.
Equity in net earnings of investments accounted for under the equity method. The increase in equity in net earnings of investments accounted for under the equity method of $14 million was primarily driven by higher earnings from our investments.
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Liquidity and capital resources
The following table presents our consolidated cash flows for the six months ended June 30, 2025 and 2024:
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| (U.S. Dollars in millions) | |||||||||||
| Net cash provided by operating activities | $ | 2,666 | $ | 2,785 | |||||||
| Net cash used in investing activities | (1,299) | (1,692) | |||||||||
| Net cash provided by (used in) financing activities | 74 | (1,304) | |||||||||
Cash flows provided by operating activities. During the six months ended June 30, 2025, our net cash provided by operating activities of $2.7 billion was the result of net income of $1.9 billion, adjustments of non-cash items to net income of $1.7 billion consisting primarily of depreciation, amortization, asset impairment, share-based compensation and deferred tax expense, collections of finance leases of $157 million and the net change in operating assets and liabilities of $79 million, partially offset by the classification of net gain on sale of assets and net recoveries related to Ukraine Conflict of $1.2 billion to investing activities. During the six months ended June 30, 2024, our net cash provided by operating activities of $2.8 billion was the result of net income of $1.1 billion, adjustments of non-cash items to net income of $1.7 billion consisting primarily of depreciation and amortization, asset impairment, share-based compensation and deferred tax expense, collections of finance leases of $203 million and the net change in operating assets and liabilities of $139 million, partially offset by the classification of net gain on sale of assets and net recoveries related to Ukraine Conflict of $312 million to investing activities.
Cash flows used in investing activities. During the six months ended June 30, 2025, our net cash used in investing activities of $1.3 billion primarily consisted of cash used for the purchase of and prepayments on flight equipment and other assets of $3.0 billion, partially offset by cash provided by asset sales of $875 million and cash proceeds from insurance claims of $824 million. During the six months ended June 30, 2024, our net cash used in investing activities of $1.7 billion primarily consisted of cash used for the purchase of and prepayments on flight equipment and other assets of $3.2 billion, partially offset by cash provided by asset sales of $1.5 billion.
Cash flows provided by (used in) financing activities. During the six months ended June 30, 2025, our net cash provided by financing activities of $74 million primarily consisted of new financing proceeds, net of cash used for debt repayments, debt issuance and extinguishment costs of $790 million and net cash provided by maintenance payments and security deposits received of $483 million, partially offset by cash used for the repurchase of shares, payments of tax withholdings on share-based compensation and dividends paid on ordinary shares of $1.2 billion. During the six months ended June 30, 2024, our net cash used in financing activities of $1.3 billion primarily consisted of cash used for debt repayments, debt issuance and extinguishment costs, net of new financing proceeds and debt premium received of $820 million and cash used for the repurchase of shares, payments of tax withholdings on share-based compensation and dividends paid on ordinary shares of $765 million, partially offset by net cash provided by maintenance payments and security deposits received of $281 million.
We have significant capital requirements, including making pre-delivery payments and paying the balance of the purchase price for flight equipment on delivery. As of June 30, 2025, we had commitments to purchase 272 new aircraft scheduled for delivery through 2030. We also had commitments to purchase 46 engines and 17 helicopters through 2027.
As of June 30, 2025, our cash balance was $2.8 billion, including unrestricted cash of $2.7 billion, and we had $11.3 billion of undrawn lines of credit available under our revolving credit facilities and term loan facilities. As of June 30, 2025, our total available liquidity, including undrawn lines of credit, unrestricted cash, cash flows from estimated asset sales and other sources of funding, was $17 billion and, including estimated operating cash flows for the next 12 months, our total sources of liquidity were $22 billion. As of June 30, 2025, our total sources of liquidity were sufficient to operate our business and cover approximately 1.9x of our debt maturities and contracted capital requirements for the next 12 months. As of June 30, 2025, the principal amount of our outstanding indebtedness, which excludes debt issuance costs, debt discounts and debt premium of $243 million, totaled $46.4 billion and consisted of senior unsecured, subordinated and senior secured notes, export credit facilities, commercial bank debt, revolving credit debt, securitization debt and capital lease structures. Please refer to “Part I. Financial Information—Item 1. Financial Statements (Unaudited)— Note 15—Debt.”
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In order to satisfy our contractual purchase obligations, we expect to source new debt financing through access to the capital markets, including the unsecured and secured bond markets, the commercial bank market, export credit and the asset-backed securities market.
In the longer term, we expect to fund the growth of our business, including acquiring flight equipment, through internally generated cash flows, the incurrence of new debt, the refinancing of existing debt and other capital-raising initiatives.
During the six months ended June 30, 2025, our average cost of debt, excluding the effect of mark-to-market movements on our interest rate derivatives, debt issuance fees, upfront fees and other impacts, was 4.1%. As of June 30, 2025, our adjusted debt to equity ratio was 2.2 to 1. Please refer to “Part I. Financial Information—Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP measures and metrics” for further information on our average cost of debt and reconciliations of adjusted debt and adjusted equity to the most closely related U.S. GAAP measures as of June 30, 2025 and December 31, 2024.
Contractual obligations
Our estimated future obligations as of June 30, 2025 include both current and long-term obligations. Our contractual obligations consist of principal and interest payments on debt, executed purchase agreements to purchase flight equipment and rent payments pursuant to our office and facility leases. We intend to fund our contractual obligations through unrestricted cash, lines-of-credit and other borrowings, operating cash flows and cash flows from asset sales. We believe that our sources of liquidity will be sufficient to meet our contractual obligations.
The following table provides details regarding our contractual obligations and their payment dates as of June 30, 2025:
| 2025 - remaining | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | ||||||||||||||||||||||||||||||||||||||
| (U.S. Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Unsecured debt facilities | $ | 2,850.0 | $ | 5,250.0 | $ | 5,705.5 | $ | 7,450.0 | $ | 4,100.0 | $ | 10,400.0 | $ | 35,755.5 | ||||||||||||||||||||||||||||||
| Secured debt facilities | 638.0 | 1,254.1 | 1,793.0 | 2,109.2 | 1,089.0 | 1,467.5 | 8,350.8 | |||||||||||||||||||||||||||||||||||||
| Subordinated debt facilities | — | — | — | — | — | 2,250.0 | 2,250.0 | |||||||||||||||||||||||||||||||||||||
| Estimated interest payments (a) | 1,029.6 | 1,874.1 | 1,620.8 | 1,231.4 | 803.8 | 6,412.4 | 12,972.1 | |||||||||||||||||||||||||||||||||||||
| Purchase obligations (b) (c) | 2,974.8 | 5,777.3 | 3,235.9 | 1,502.7 | 508.7 | 161.0 | 14,160.4 | |||||||||||||||||||||||||||||||||||||
Operating leases (d) | 5.7 | 11.4 | 12.3 | 12.9 | 10.8 | 14.1 | 67.2 | |||||||||||||||||||||||||||||||||||||
| Total (e) | $ | 7,498.1 | $ | 14,166.9 | $ | 12,367.5 | $ | 12,306.2 | $ | 6,512.3 | $ | 20,705.0 | $ | 73,556.0 | ||||||||||||||||||||||||||||||
(a)Estimated interest payments for floating rate debt are based on rates as of June 30, 2025 and include the estimated impact of our interest rate swap agreements.
(b)As of June 30, 2025, we had commitments to purchase 272 aircraft, 46 engines and 17 helicopters through 2030. The timing of our purchase obligations is based on current estimates and incorporates expected delivery delays into the table above. In addition, we have the right to reschedule the delivery dates of certain of our aircraft to future dates. Please refer to “Part I. Financial Information—Item 1. Financial Statements (Unaudited)—Note 26—Commitments and contingencies” for further details on our purchase obligations.
(c)We are also party to a contingent purchase agreement with Airbus for up to 52 additional A320neo Family aircraft currently on order by one of our lessees and scheduled to deliver between 2029 and 2031. Under this agreement, we will purchase these aircraft in the event that the purchase agreement between Airbus and the lessee is terminated, subject to certain conditions. The above table does not reflect this contingent purchase agreement.
(d)Represents contractual payments on our office and facility leases.
(e)The above table does not reflect any dividends we may pay on our ordinary shares.
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Off-balance sheet arrangements
We have interests in variable interest entities, some of which are not consolidated into our Condensed Consolidated Financial Statements. Please refer to “Part I. Financial Information—Item 1. Financial Statements (Unaudited)—Note 24—Variable interest entities” for a detailed description of these interests and our other off-balance sheet arrangements.
Book value per share
The following table presents our book value per share as of June 30, 2025, December 31, 2024 and June 30, 2024:
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |||||||||||||||
| (U.S. Dollars in millions, except share and per share data) | |||||||||||||||||
| Total AerCap Holdings N.V. shareholders’ equity | $ | 17,947 | $ | 17,185 | $ | 17,016 | |||||||||||
| Ordinary shares issued | 196,043,739 | 204,543,739 | 204,543,739 | ||||||||||||||
| Treasury shares | (17,733,971) | (17,760,514) | (9,384,417) | ||||||||||||||
| Ordinary shares outstanding | 178,309,768 | 186,783,225 | 195,159,322 | ||||||||||||||
| Shares of unvested restricted stock | (4,051,509) | (5,072,382) | (4,975,247) | ||||||||||||||
| Ordinary shares outstanding, excluding shares of unvested restricted stock | 174,258,259 | 181,710,843 | 190,184,075 | ||||||||||||||
| Book value per ordinary share outstanding, excluding shares of unvested restricted stock | $ | 102.99 | $ | 94.57 | $ | 89.47 | |||||||||||
Non-GAAP measures and metrics
The following are definitions of our non-GAAP measures and metrics used in this report and a reconciliation of such measures to the most closely related U.S. GAAP measures for the six months ended June 30, 2025. We believe these measures and metrics may further assist investors in their understanding of our performance and the changes and trends related to our earnings. These measures and metrics should not be viewed in isolation and should only be used in conjunction with and as a supplement to our U.S. GAAP financial measures. Non-GAAP measures and metrics are not uniformly defined by all companies, including those in our industry, and so this additional information may not be comparable with similarly-titled measures, metrics and disclosures by other companies.
Adjusted debt-to-equity ratio
This measure is the ratio obtained by dividing adjusted debt by adjusted equity. Adjusted debt represents consolidated total debt less cash and cash equivalents, and less a 50% equity credit with respect to certain long-term subordinated debt. Adjusted equity means total equity, plus the 50% equity credit relating to the long-term subordinated debt. Adjusted debt and adjusted equity are adjusted by the 50% equity credit to reflect the equity nature of those financing arrangements and to provide information that is consistent with definitions under certain of our debt covenants. We believe this measure may further assist investors in their understanding of our capital structure and leverage.
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The following is a reconciliation of debt to adjusted debt and equity to adjusted equity as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | December 31, 2024 | ||||||||||
| (U.S. Dollars in millions, except debt/equity ratio) | |||||||||||
| Debt | $ | 46,113 | $ | 45,295 | |||||||
| Adjusted for: | |||||||||||
| Unrestricted cash and cash equivalents | (2,696) | (1,209) | |||||||||
| 50% equity credit for long-term subordinated debt | (1,125) | (1,125) | |||||||||
| Adjusted debt | $ | 42,292 | $ | 42,961 | |||||||
| Equity | $ | 17,947 | $ | 17,185 | |||||||
| Adjusted for: | |||||||||||
| 50% equity credit for long-term subordinated debt | 1,125 | 1,125 | |||||||||
| Adjusted equity | $ | 19,072 | $ | 18,310 | |||||||
| Adjusted debt/equity ratio | 2.22 to 1 | 2.35 to 1 | |||||||||
Average cost of debt
Average cost of debt is calculated as interest expense, excluding mark-to-market on interest rate derivatives, debt issuance costs, upfront fees and other impacts, divided by the average debt balance. This measure reflects the impact from changes in the amount of debt and interest rates.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Percentage Difference | 2025 | 2024 | Percentage Difference | ||||||||||||||||||||||||||||||
| (U.S. Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Interest expense | $ | 519 | $ | 478 | 8 | % | $ | 1,022 | $ | 970 | 5 | % | |||||||||||||||||||||||
| Adjusted for: | |||||||||||||||||||||||||||||||||||
| Mark-to-market on interest rate derivatives | (11) | (5) | 129 | % | (15) | (8) | 95 | % | |||||||||||||||||||||||||||
| Debt issuance costs, upfront fees and other impacts | (26) | (33) | (20 | %) | (55) | (64) | (14 | %) | |||||||||||||||||||||||||||
| Interest expense excluding mark-to-market on interest rate derivatives, debt issuance costs, upfront fees and other impacts | $ | 482 | $ | 440 | 10 | % | $ | 952 | $ | 898 | 6 | % | |||||||||||||||||||||||
| Average debt balance | $ | 46,667 | $ | 45,972 | 2 | % | $ | 46,410 | $ | 46,296 | — | ||||||||||||||||||||||||
| Average cost of debt | 4.1% | 3.8% | 8 | % | 4.1 | % | 3.9 | % | 6 | % | |||||||||||||||||||||||||
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Summarized financial information of issuers and guarantors
AGAT/AICDC Notes
From time to time AerCap Trust and AICDC co-issue senior unsecured notes. In July 2024, AerCap Trust and AICDC co-issued $750 million aggregate principal amount of fixed-rate reset junior subordinated notes due 2055 and, in April 2025, they co-issued $500 million aggregate principal amount of fixed-rate reset junior subordinated notes due 2056 (together, the “AGAT/AICDC Junior Subordinated Notes” and, collectively with their senior unsecured notes, the “AGAT/AICDC Notes”). Please refer to “Part I. Financial Information—Item 1. Financial Statements (Unaudited)—Note 15—Debt” for further details on the AGAT/AICDC Notes. The AGAT/AICDC Notes are jointly and severally and fully and unconditionally guaranteed by AerCap Holdings N.V. (the “Parent Guarantor”) and by AerCap Ireland, AerCap Aviation Solutions B.V., ILFC and AerCap U.S. Global Aviation LLC (the “Subsidiary Guarantors” and, together with the Parent Guarantor, the “AGAT/AICDC Guarantors”).
Subject to the provisions of the indenture governing the AGAT/AICDC Notes (the “AGAT/AICDC Indenture”), a Subsidiary Guarantor will be automatically and unconditionally released from its guarantee with respect to a series of AGAT/AICDC Notes under the following circumstances: (1) the sale, disposition or other transfer of (i) the capital stock of a Subsidiary Guarantor after which such Subsidiary Guarantor is no longer a Restricted Subsidiary (as defined in the AGAT/AICDC Indenture) or, in the case of the AGAT/AICDC Junior Subordinated Notes, a Subsidiary (as defined in the AGAT/AICDC Indenture) or (ii) all or substantially all of the assets of a Subsidiary Guarantor; (2) in the case of the senior unsecured notes, the permitted designation of the Subsidiary Guarantor as an Unrestricted Subsidiary as defined in and pursuant to the AGAT/AICDC Indenture; (3) the consolidation, amalgamation or merger of a Subsidiary Guarantor with and into AerCap Trust, AICDC or another AGAT/AICDC Guarantor with such person being the surviving entity, or upon the liquidation of a Subsidiary Guarantor following the transfer of all of its assets to AerCap Trust, AICDC or another AGAT/AICDC Guarantor; or (4) legal defeasance or covenant defeasance with respect to such series, each as described in the AGAT/AICDC Indenture, or if the obligations of AerCap Trust and AICDC with respect to such series under the AGAT/AICDC Indenture are discharged.
The guarantee obligations of each Subsidiary Guarantor are limited (i) to an amount not to exceed the maximum amount that can be guaranteed by a Subsidiary Guarantor (after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of all other AGAT/AICDC Guarantors in respect of the obligations under their respective guarantees) without rendering the guarantee, as it relates to such Subsidiary Guarantor, voidable under applicable fraudulent conveyance or transfer laws, and (ii) as necessary to recognize certain defenses generally available to guarantors, including voidable preference, financial assistance, corporate purpose, capital maintenance or similar laws, regulations or defenses affecting the rights of creditors generally or other considerations under applicable law. In addition, given that some of the AGAT/AICDC Guarantors are Irish and Dutch companies, it may be more difficult for holders of the AGAT/AICDC Notes to obtain or enforce judgments against such guarantors.
AICDC and certain AGAT/AICDC Guarantors are holding companies and therefore hold equity interests in directly held subsidiaries, amongst having other trading activities. As a result, AICDC and certain AGAT/AICDC Guarantors could be dependent on dividends and other payments from their subsidiaries to generate the funds necessary to meet their outstanding debt service and other obligations, and such dividends or other payments will in turn depend on factors, such as their subsidiaries’ earnings, covenants in instruments governing their subsidiaries’ indebtedness, other contractual restrictions and applicable laws (including local law restricting payments of dividends).
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Summarized Combined Financial Information
Summarized financial information (“SFI”), as defined under Rule 1-02(bb) of Regulation S-X, is provided below for the issuers and the guarantor entities and includes AerCap Holdings N.V., AerCap Trust, AICDC, AerCap U.S. Global Aviation LLC, AerCap Aviation Solutions B.V., AerCap Ireland and ILFC (collectively, the “Obligor Group”) as of June 30, 2025 and December 31, 2024, and for the six months ended June 30, 2025. SFI is presented on a combined basis with intercompany transactions and balances among the entities included in the Obligor Group eliminated. Obligor Group SFI excludes investments in non-obligor entities.
| Summarized combined financial information of issuers and guarantors | ||||||||||||||
| June 30, 2025 | December 31, 2024 | |||||||||||||
(U.S. Dollars in millions) | ||||||||||||||
Flight equipment held for operating leases, net | $ | 10,268 | $ | 10,014 | ||||||||||
Intercompany receivables | 33,660 | 34,989 | ||||||||||||
Total assets | 48,227 | 47,614 | ||||||||||||
Debt | 36,360 | 35,263 | ||||||||||||
Intercompany payables | 3,218 | 4,585 | ||||||||||||
Total liabilities | 42,518 | 42,536 | ||||||||||||
| Six Months Ended | ||||||||
| June 30, 2025 | ||||||||
(U.S. Dollars in millions) | ||||||||
| Total revenues and other income (a) | $ | 1,803 | ||||||
| Total expenses (b) | 180 | |||||||
| Income before income taxes and loss of investments accounted for under the equity method | 1,623 | |||||||
| Net income | 1,417 | |||||||
| Net income attributable to AerCap Holdings N.V. | 1,417 | |||||||
(a)Total revenues include interest income from non-obligor entities of $926 million.
(b)Total expenses include interest expense to non-obligor entities of $62 million.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
Our primary market risk exposure is interest rate risk associated with short- and long-term borrowings bearing variable interest rates and lease payments under leases tied to floating interest rates. To manage this interest rate exposure, from time to time, we enter into interest rate swap and cap agreements and U.S. Treasury rate lock agreements. We are also exposed to foreign currency risk, which can adversely affect our operating profits. To manage this risk, from time to time, we may enter into forward exchange contracts.
The following discussion should be read in conjunction with “Part I. Financial Information—Item 1. Financial Statements (Unaudited)—Note 12—Derivative financial instruments,” “Part I. Financial Information—Item 1. Financial Statements (Unaudited)—Note 15—Debt” and our audited Consolidated Financial Statements included in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on February 26, 2025, which provide further information on our debt and derivative financial instruments.
Interest rate risk
Interest rate risk is the exposure to changes in the level of interest rates and the spread between different interest rates. Interest rate risk is highly sensitive to many factors, including government monetary policies, global economic factors and other factors beyond our control.
We enter into leases with rents that are based on fixed and variable interest rates, and we fund our operations primarily with a mixture of fixed and floating rate debt. Interest rate exposure arises when there is a mismatch between terms of the associated debt and interest-earning assets, primarily between floating rate debt and fixed rate leases. We manage this exposure primarily through the use of interest rate caps and interest rate swaps using a cash flow-based risk management model. This model takes the expected cash flows generated by our assets and liabilities and then calculates by how much the value of these cash flows will change for a given movement in interest rates.
The following tables present the average notional amounts and weighted average interest rates which are contracted for the specified year for our derivative financial instruments that are sensitive to changes in interest rates, including our interest rate caps and swaps, as of June 30, 2025. Notional amounts are used to calculate the contractual payments to be exchanged under the contract. Under our interest rate caps, we will receive the excess, if any, of Term SOFR, reset monthly or quarterly on an actual/360 adjusted basis, over the strike rate of the relevant cap. For our interest rate swaps, pay rates are based on the fixed rate which we are contracted to pay to our swap counterparty.
| 2025 - remaining | 2026 | 2027 | 2028 | 2029 | Thereafter | Fair value | |||||||||||||||||||||||||||||||||||||||||
| (U.S. Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate caps | |||||||||||||||||||||||||||||||||||||||||||||||
| Average notional amounts | $ | 1,120.9 | $ | 603.5 | $ | 531.8 | $ | 455.8 | $ | 198.3 | $ | — | $ | 18.1 | |||||||||||||||||||||||||||||||||
| Weighted average strike rate | 2.9% | 3.4% | 3.3% | 3.3% | 3.3% | — | |||||||||||||||||||||||||||||||||||||||||
| 2025 - remaining | 2026 | 2027 | 2028 | 2029 | Thereafter | Fair value | |||||||||||||||||||||||||||||||||||||||||
| (U.S. Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate swaps | |||||||||||||||||||||||||||||||||||||||||||||||
| Average notional amounts | $ | 6,630.0 | $ | 5,742.5 | $ | 4,659.6 | $ | 2,002.1 | $ | — | $ | — | $ | (60.2) | |||||||||||||||||||||||||||||||||
| Weighted average pay rate | 3.7% | 3.8% | 3.9% | 3.9% | — | — | |||||||||||||||||||||||||||||||||||||||||
| 2025 - remaining | 2026 | 2027 | 2028 | 2029 | Thereafter | Fair value | |||||||||||||||||||||||||||||||||||||||||
| (U.S. Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Other financial derivatives | |||||||||||||||||||||||||||||||||||||||||||||||
| Average notional amounts | $ | 957.0 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (10.4) | |||||||||||||||||||||||||||||||||
| Weighted average pay rate | 4.1% | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
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The variable benchmark interest rates associated with these instruments are Term SOFR and U.S. Treasuries.
Our Board of Directors is responsible for reviewing our overall interest rate management policies. Our counterparty risk is monitored on an ongoing basis, but is mitigated by the fact that the majority of our interest rate derivative counterparties are required to collateralize in the event of their downgrade by the rating agencies below a certain level.
Foreign currency risk and foreign operations
Our functional currency is U.S. dollars. The functional currency for domestic and substantially all foreign operations is the U.S. dollar. Foreign currency transaction gains and losses are not significant to the Company’s operations. Foreign exchange risk arises from our and our lessees’ operations in multiple jurisdictions. All of our aircraft purchase agreements are negotiated in U.S. dollars, we currently receive substantially all of our revenue in U.S. dollars and we pay our expenses primarily in U.S. dollars. We currently have a limited number of leases and helicopter purchase agreements denominated in foreign currencies, maintain part of our cash in foreign currencies, pay taxes in foreign currencies, and incur some of our expenses in foreign currencies, primarily the euro. A decrease in the U.S. dollar in relation to foreign currencies increases our lease revenue received from foreign currency-denominated leases and our expenses paid in foreign currencies. An increase in the U.S. dollar in relation to foreign currencies decreases our lease revenue received from foreign currency-denominated leases and our expenses paid in foreign currencies. Because we currently receive most of our revenues in U.S. dollars and pay most of our expenses in U.S. dollars, a change in foreign exchange rates would not have a material impact on our results of operations or cash flows. We do not have any restrictions or repatriation issues associated with our foreign cash accounts.
Inflation
After a sustained period of relatively low inflation rates, rates of inflation increased significantly during the years ended December 31, 2022 and 2023, reaching or exceeding recent historical highs in the United States, the European Union, the United Kingdom, and other countries, before stabilizing during the year ended December 31, 2024. The recent increases in tariffs by the United States, the prospect of potential additional tariffs and retaliatory tariffs and the recent trade deals between the United States and certain trading partners may lead to higher inflation in the future. High rates of inflation may have a number of adverse effects on our business. Inflation may increase the costs of goods, services and labor used in our operations, thereby increasing our expenses. To the extent that we derive our income from leases with fixed rates of payment, high rates of inflation will cause a greater decrease in the value of those payments than had the rates of inflation remained lower. Because our leases are generally multi-year, there may be a lag in our ability to adjust the lease rates for a particular aircraft accordingly. Our suppliers and lessees may also be subject to material adverse effects as a result of high rates of inflation, including as a result of the impact on their financial conditions, changes in demand patterns, price volatility, and supply chain disruption.
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Please refer to “Part I. Financial Information—Item 1. Financial Statements (Unaudited)—Note 26—Commitments and contingencies” in this report.
Item 1A. Risk Factors
The information presented below updates, and should be read in conjunction with, the risk factors and information disclosed in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on February 26, 2025 and in our Interim Report on Form 6-K for the quarter ended March 31, 2025, filed with the SEC on April 30, 2025. Except as presented below, there have been no material changes in our risk factors since those reported in our Annual Report for the year ended December 31, 2024 or our Interim Report for the quarter ended March 31, 2025.
Trade tensions, including U.S. tariffs and retaliatory measures by some countries, and the resulting geopolitical and macroeconomic uncertainty could adversely impact our business
Changes in U.S. trade policy, including new or increased tariffs, and responses by other countries to these changes, are creating, and may continue to create, uncertainty in global commerce. For example, on April 2, 2025, President Trump announced new tariffs on the import of non-U.S.-origin goods from most countries, and several countries, including China, responded with retaliatory measures, including tariffs on imports of U.S.-origin goods. While some of the tariffs announced by the U.S. and other countries have been suspended pending negotiations, the U.S. has imposed a general tariff of 10% on all non-U.S.-origin goods, with certain exceptions, that is currently in effect. On May 1, 2025, the U.S. Department of Commerce initiated an investigation into the effects on national security of imports of commercial aircraft and jet engines. It is unclear what the outcome of this investigation will be and what impact, if any, it will have on the aviation sector. Recently announced high-level trade agreements between the United States and the United Kingdom and the European Union would exempt aviation from tariffs, pending finalization of these trade agreements.
These changes in trade policy and ongoing negotiations of trade agreements are creating significant uncertainty, and future tariffs or other measures may create additional uncertainty, which could materially affect our business. In addition, tariffs and other measures could result in material additional costs to our lessees in impacted jurisdictions, which could affect the ability of those lessees to meet their lease obligations to us and could negatively impact the demand for leases or purchases of certain types of flight equipment in impacted jurisdictions. In addition, tariffs levied on countries where our suppliers source their parts and materials could disrupt their operations, which could result in delays in the delivery of our flight equipment on order or increased costs. These tariffs and other measures could be inflationary or cause interest rates to rise, which could negatively impact us, our suppliers and our lessees.
Changes in tariffs and other measures may be announced with little or no advance notice. The adoption and expansion of tariffs and other measures, or other changes in governmental policies related to taxes, tariffs, trade agreements, are difficult to predict, which makes attendant risks difficult to anticipate and mitigate. Changes in tariffs and other measures announced to date have led to increased geopolitical and macroeconomic uncertainty and volatility in the financial markets.
Any of the foregoing could have a material and adverse effect on our financial condition, cash flows, liquidity and results of operations. Please refer to our Annual Report on Form 20‑F for the year ended December 31, 2024, “Item 3. Key Information—Risk Factors,” in particular pages 9-13 and 17.
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table presents repurchases of our ordinary shares made by us during the six months ended June 30, 2025:
| Number of ordinary shares purchased | Average price paid per ordinary share | Total number of ordinary shares purchased as part of our publicly announced program | Maximum dollar value of ordinary shares that may yet be purchased under the program (U.S. Dollars in millions) (a) | ||||||||||||||||||||
| January 2025 | 1,169,860 | $ | 94.72 | 1,169,860 | $ | 198.0 | |||||||||||||||||
| February 2025 | 513,632 | 96.60 | 513,632 | 1,148.4 | |||||||||||||||||||
| March 2025 | 4,016,349 | 99.03 | 4,016,349 | 750.7 | |||||||||||||||||||
| April 2025 | 4,727,512 | 94.03 | 4,727,512 | 806.3 | |||||||||||||||||||
| May 2025 | — | — | — | 806.3 | |||||||||||||||||||
| June 2025 | — | — | — | 806.3 | |||||||||||||||||||
| 10,427,353 | $ | 96.16 | 10,427,353 | $ | 806.3 | ||||||||||||||||||
(a)For further detail on our share repurchase programs, please refer to “Part I. Financial Information—Item 1. Financial Statements (Unaudited)— Note 17—Equity.
Item 3. Defaults upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
None.
Item 6. Exhibits
101.INS Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
55
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| AERCAP HOLDINGS N.V. | ||||||||
| By: | /s/ Aengus Kelly | |||||||
| Name: | Aengus Kelly | |||||||
| Title: | Authorized Signatory | |||||||
Date: July 30, 2025 | ||||||||
56
FAQ
How did the Russian insurance recovery impact AER's Q2-25 results?
$973 M pre-tax gain was recorded, driving net income to $1.26 B and EPS to $7.09.
What is AerCap’s current dividend per share (AER)?
The Board declared a quarterly cash dividend of $0.27, payable 4 Sep 2025.
How many shares did AerCap repurchase in 2025 to date?
The company bought back 10.4 million shares at an average price of $96.16.
What is AerCap’s leverage after Q2-25?
Debt is $46.1 B; shareholders’ equity is $17.95 B, implying ~2.6× debt/equity.
How large is AerCap’s aircraft orderbook?
The firm has commitments for 272 new aircraft delivering through 2030.
Is further recovery from Russian insurers expected?
AerCap is pursuing ~$1.5 B in additional claims, but timing and collectability remain uncertain.
Aercap Holdings Nv