AerCap Holdings has reported financial results for the first quarter ended March 31, 2022.
The company posted a net loss for the first quarter, including net charges related to the Ukraine conflict, of US$2.0 billion. Net income for the first quarter was US$540 million after adjustments for net charges related to the Ukraine conflict and other items.
AerCap executed 157 transactions in the first quarter of 2022, including 102 lease agreements, 25 purchases and 30 sales. First quarter cash flow from operating activities was US$1.3 billion, more than three-times higher than the first quarter of 2021. The company continued to see significant improvements in cash collections, trade receivables and deferral requests.
In response to the Russian invasion of Ukraine and sanctions imposed by the United States, the European Union, the United Kingdom and other countries, the company terminated the leasing of all its aircraft and engines with Russian airlines. Prior to the Russian invasion, it had 135 aircraft and 14 engines on lease with Russian airlines, which represented approximately 5% of AerCap’s fleet by net book value as of December 31, 2021.
AerCap removed 22 aircraft and three engines outside of Russia and 113 aircraft and 11 engines remain in Russia. During the first quarter of 2022, the company recognized a pre-tax charge of US$2.7 billion (US$2.4 billion aftertax) to its earnings, comprised of flight equipment write-offs and impairments, which were partially offset by the derecognition of lease-related assets and liabilities. The company recognised a total loss on its assets that remain in Russia and Ukraine and impairment losses on the assets it has recovered from Russian and Ukrainian airlines. (£1.00 = US$1.25 at time of publication).
