Further information concerning issues that could materially affect performance can be found in AerCap's earnings release dated April 29, 2026. A copy of the earnings release and conference call presentation are available on our website at aercap.com. We will shortly run through our earnings presentation, and we will allow time at the end for Q&A. I'll then touch on our outlook and strategic priorities for the remainder of the year before handing the call over to Pete to review the financials in more detail.
Starting with performance, I am pleased to report that this was another record quarter of earnings for AerCap. The company generated GAAP net income of $818 million or $4.96 per share and record adjusted net income of $889 million or $5.39 per share. This represents an 18% GAAP return on equity or 19% adjusted return on equity for the quarter. Despite the macro backdrop, we continue to see robust demand for aviation assets, supported by persistent supply challenges and sustained consumer demand for air travel.
This included the signing of 202 lease agreements and the sale of 41 owned assets, generating sales revenue of $1.5 billion. We continue to see strong demand for our assets despite recent geopolitical events. In the scenario in which fuel costs remain elevated beyond six months, we would expect to see additional growth opportunities emerge for AerCap. In particular, it is likely that we'd see increased sale-leaseback opportunities as airlines look to fund growth while preserving cash and prioritizing liquidity.
What went well
- Record GAAP net income of $818 million ($4.96/share) and record adjusted net income of $889 million ($5.39/share), an 18% GAAP ROE and record 19.4% adjusted ROE for the quarter.
- Closed 286 transactions in the quarter including 202 lease signings and the sale of 41 owned assets for $1.5 billion in sales revenue, at a 24% unlevered gain-on-sale margin (1.9x book value); net gain on sale of assets was $291 million.
- 87% lease extension rate, with 57 of the lease agreements signed in March (after the geopolitical/Middle East conflict began) showing little change in airline behavior; management said no sales have fallen through or been renegotiated.
- Raised full-year 2026 adjusted EPS guidance to approximately $14.50 and now expects full-year asset sales to exceed $3 billion (versus prior $2-3 billion guide), given the strong Q1 volume and held-for-sale balance.
- Repurchased $745 million of shares (5.4 million shares) in the quarter and announced a new $1 billion share-repurchase authorization; balance sheet remains strong with 2.1x net debt/equity leverage (below target), $21 billion of liquidity, and over $3 billion of excess capital.
- Added 110 Airbus A320neo aircraft to the order backlog in Q1 via a complex CFM engine/Frontier transaction that freed up production slots, securing an attractive delivery stream starting in 2028 — a slot other lessors reportedly could not access.
What went wrong
- Management flagged that if elevated jet fuel prices persist for three to six months (and especially beyond six months), it will pressure airline profitability and balance-sheet resilience, potentially accelerating retirement of older-technology aircraft over time.
- Wide-body demand from Middle Eastern carriers has already softened: daily global flights were down slightly year-over-year (a small but real decline concentrated in Middle East wide-bodies), and one wide-body sale transaction was put on pause due to an airline management change.
- Basic lease rents of $1,682 million were slightly lower quarter-over-quarter, due partly to aircraft sales and downtime on aircraft returned from the Spirit Airlines bankruptcy restructuring.
- Interest expense was a substantial $467 million for the quarter, and the elevated net maintenance contribution ($138 million) is expected to normalize downward in the second half of the year rather than persist.
- CFO guidance excludes any further gains on sale for the remainder of 2026 beyond Q1, implying earnings quality/comparability could soften from here if the strong Q1 sales pace isn't repeated.
- Management acknowledged that in a prolonged higher-fuel scenario, lease rates and gain-on-sale margins (especially for older-technology assets) would likely come down, and some airlines could eventually seek concessions, though none have done so materially yet.
More on AerCap Holdings N.V.
Reported 2026-04-29 · figures from the AerCap Holdings N.V. Q1 2026 earnings call.