AerCap Holdings N.V. (AER) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 2, 2023 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and welcome to AerCap Holdings N.V. First Quarter 2023 Financial Results. Today’s conference is being recorded and a transcript will be available following the call on the company’s website.

At this time, I’d like to turn the conference over to Joseph McGinley, Head of Investor Relations. Please go ahead, sir.

Joseph McGinley

Thank you, operator, and hello, everyone. Welcome to our first quarter 2023 conference call. With me today is our Chief Executive Officer, Aengus Kelly; and our Chief Financial Officer, Pete Juhas.

Before we begin today’s call, I would like to remind you that some statements made during this conference call, which are not historical facts may be forward-looking statements. Forward-looking statements involve risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied in such statements.

AerCap undertakes no obligation other than that imposed by law to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after this call.

Further information concerning issues that could materially affect performance can be found in AerCap’s earnings release dated May 2, 2023. A copy of our earnings release and conference call presentation are available on our website at aercap.com. This call is open to the public and is being webcast simultaneously at aercap.com and will be archived for replay. We will shortly run-through our earnings presentation and we’ll allow time at the end for Q&A. As a reminder, I would ask that analysts limit themselves to one question and one follow-up.

I will now turn the call over to Aengus Kelly.

Aengus Kelly

Thank you for joining us for our first quarter 2023 earnings call. I am pleased to report another quarter of strong earnings for AerCap, generating adjusted net income of $566 million and adjusted earnings per share of $2.34. This reflects the continued normalization of air travel demand after the events of the past few years and a return to business as usual for AerCap and our airline customers.

I am also pleased to affirm our 2023 adjusted EPS guidance at the higher end of our previously announced range. Cash generation was extremely robust in the quarter with operating cash flows of $1.4 billion on strong collections and higher utilization of our assets. As a result of these excellent earnings and cash flows, I am pleased to announce a new $500 million share repurchase program. It is clear that the tone of the airline industry continues to be positive and unlike prior years, this is now reflected in all major regions of the world.