AerCap Holdings N.V. (NYSE:AER) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:30 am ET

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AerCap Holdings N.V. (NYSE:AER) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the AerCap's Fourth Quarter and Full Year 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.

Executive
Joseph McGinley

Thank you, operator, and hello, everyone. Welcome to our Full Year 2019 Conference Call. With me today is our Chief Executive Officer, Aengus Kelly; and our Chief Financial Officer, Pete Juhas. Before we begin this 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 February 13, 2020. A copy of the 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 analyst limit themselves to one question and one follow-up. I will now turn the call over to Aengus Kelly.

Executive
Aengus Kelly

Thank you, Joe, and thank you for joining us for our fourth quarter 2019 earnings call. I am delighted to report record earnings per share of $8.43. In the fourth quarter, AerCap generated $2.34 of earnings per share, a 44% increase over Q4 2018, continuing our long track record of consistent earnings growth. During the year, the AerCap team executed 353 aircraft transactions, which included 192 lease agreements, 65 aircraft purchases, and the sale of 96 midlife and older aircraft. This unmatched scale of activity demonstrates the breadth and depth of AerCap's relationships with airlines, manufacturers and investors around the world. We enter 2020 in a position of strength. We have $40 billion of contracted future lease rents. For the next three years, over 97% of our lease rents are already contracted. Our average lease does not expire until the third quarter of 2027. All of this gives us tremendous visibility into our future cash flows. Moreover, today, new technology aircraft make up 58% of our fleet. That is the highest percentage of new technology aircraft of any major lessor in the world.

AerCap has taken delivery of more new technology aircraft than any other aircraft lessor or airline in the world. As a result, AerCap is helping its customers meet their environmental and sustainability objectives. Our new technology fee today is concentrated on the most in-demand variants: the A321, A320neo, the A321neo,