AerCap has revealed its financial performance for the fourth quarter and full year of 2023, concluding on December 31, 2023.
Aengus Kelly, the CEO of AerCap, expressed satisfaction with the results, marking another record quarter and a stellar year for the company. Kelly attributed these achievements to the robust operating environment and positive momentum in aircraft, engines and helicopters leasing and sales. The quarter also saw AerCap collecting over US$600 million in insurance settlements, contributing to a total of US$1.3 billion in 2023. Kelly emphasised the team’s talent, dedication and industry leadership, expressing confidence in AerCap’s outlook for 2024 and beyond.
Key financial highlights include a 27% return on equity and a 16% adjusted return on equity for Q4 2023. The book value per share reached US$83.81 as of December 31, 2023, reflecting a 25% increase from the previous year. The unlevered gain on sale margin was 18% for assets sold in Q4 2023, equivalent to 1.62-times book value on an equity basis.
In terms of cash flow, AerCap reported US$1.4 billion from operating activities in Q4 2023, contributing to a total of US$5.3 billion for the full year 2023. The company successfully recovered US$1.3 billion in cash insurance settlement proceeds, with US$609 million obtained in Q4 2023.
Throughout 2023, AerCap returned US$2.6 billion to shareholders through the repurchase of 44.3 million shares at an average price of US$59.09 per share. Additionally, following a prosperous secondary offering in Q4 2023, General Electric (GE) has completely divested its AerCap shares.
The adjusted debt/equity ratio stood at 2.47 to 1 as of December 31, 2023, underlining AerCap’s solid financial position. (£1.00 = US$1.27 at time of publication).
