AerCap Holdings N.V. (NYSE:AER) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 08:30 am ET


AerCap Holdings N.V. (NYSE:AER) Q3 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good day, and welcome to the AerCap's Third Quarter 2019 Financial Results Call. Today's conference is being recorded and a transcript will be available following the call on the Company's website. At this time, I would 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 Third Quarter 2019 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 November 8, 2019. A copy of our earnings release and conference call presentation are available on our website at This call is open to the public and is being webcast simultaneously at and will be archived for replay.

We will shortly run through our earnings presentation and will 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, Joe, and good morning, everyone. Thank you for joining us for our third quarter earnings call. I'm pleased to report another quarter of strong earnings. During the third quarter AerCap generated $2.01 of earnings per share and net income of $270 million. It is of course the platform of AerCap and it's people that underpins our success.

During the quarter the AerCap team executed 108 aircraft transactions, made about 72 lease agreements, 16 aircraft purchases and 20 aircraft sales. Furthermore, 23 of these transactions were for wide-body aircraft. On the purchases side we took delivery of nine A320neo's, four 787-9, two E2s and A350 900. These aircraft remain the most in-demand variance of their types, which helps us to place them further and further out into the future.

The key to AerCap's purchasing and portfolio strategy is to buy aircraft that our customers want, not whatever Boeing and Airbus want to sell. With regard to the MAX, we did not take any deliveries in Q3. Boeing continues to work with the civil aviation authorities to ensure the MAX safe return to service and Boeing continues to assume that they will obtain regulatory approval in the fourth quarter of this year. Ultimately, though, the FAA and other regulatory authorities will determine the timing and we may see variations by jurisdiction.

As a reminder, we have taken delivery of only five MAX aircraft to date