AerCap Holdings N.V. (NYSE:AER) Q2 2020 Earnings Conference Call - Final Transcript
Jul 29, 2020 • 08:30 am ET
Good day and welcome to AerCap Holdings N.V. Second Quarter 2020 Financial Results Call. [Operator Instructions]
At this time, I would like to turn the conference over to Joseph McGinley, Head of Investor Relations. Please go ahead, sir.
Thank you, operator, and hello, everyone. Welcome to our second quarter 2020 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 July 29, 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 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.
Good morning, everyone, and thank you for joining us for our second quarter 2020 earnings call. Clearly, the environment remains very challenged. But I am pleased to report that the AerCap platform continues to perform well and reported net income of $246 million and earnings per share of $1.92 for the second quarter.
Turning to the market and the global environment, we have just gone through what was the worst six months aviation has ever experienced and I hope ever will. The positive is that the industry is very much alive and is starting to recover in certain parts of the world. In other parts, this is not the case. So starting with where the virus was first detected in China, we see that the recovery is well underway. Last Friday, there were over 11,500 domestic flights, which is equivalent to 90% of the pre-COVID levels in January. This demonstrates that once customers believe it is safe to fly and they have clear procedures to follow, they will and want to travel.
Next in the U.S., we saw the bottom on April 14, and we observed a steady improvement that began to accelerate into June. But since the beginning of July, the U.S. recovery has run out of steam and retreated. It will take control of the virus to get the U.S. recovery back on track.
In contrast, in Europe, we are seeing the largest recovery. Europe bottomed on April 12 with 2,099 flights. However, last Friday, July 24, there