AerCap Signed 51 Lease Agreements From April To June

Global lessor AerCap signed lease agreements for 51 aircraft during the second quarter of 2021. The company leased 38 narrowbodies and 13 widebodies, signaling increased demand as aviation markets begin bouncing back. Let’s find out more.

AerCap’s total aircraft deals went up by over 10% from the previous quarter. Photo: Boeing

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The second quarter of 2021 proved to be another strong one for AerCap. The world’s largest lessor purchased 15 new planes, namely 10 Airbus A320neo family jets, four Boeing 737 MAX’s, and one Embraer E2 jet. The lessor also sold 12 planes, including one A330, five 737NGs, three 757s, and three 767-300ERs.

On the leasing side of things, numbers were up too. AerCap signed 51 new lease agreements from April to June of this year. This includes deals for 38 narrowbodies and 13 widebodies, although the exact variants of either are currently unknown.

AerCap leases aircraft to customers globally, ranging from Aegean Airlines in Europe to LATAM in South America.  Photo: Getty Images

Overall, this quarter’s figures were up over 10% compared to Q1. Last quarter, AerCap saw 60 aircraft leases, including 28 widebodies, one aircraft purchase, and nine sales in total. While new lease agreements went down this time, other segments have picked up in its place.

Overall, 2021 is already shaping up to be a much stronger year than the one gone by. 2020 was the global giant only sign a total of 97 lease agreements and make 179 aircraft deals in total (new leases, purchases, and sales). In the first half of 2021 alone, AerCap has already clocked more fresh leases and is on track to handily beat out last year.

Purchase coming

Since March, all eyes have been on AerCap’s mega-deal to purchase lessor GE Capital Aviation Services (GECAS). The deal would see AerCap increase its global market share to 18% and hold a fleet of over 2,000 aircraft, cementing its position as the largest lessor in the world.

The purchase agreement is expected to be completed by the fourth quarter of 2021. However, this timeline will be subject to approval from global regulators, who may have concerns over AerCap’s new market position. According to Reuters, the EU will make a ruling about the GECAS purchase by July 26th, where it could decide to approve the deal, order a four-month investigation due to concerns, or force concessions before approval.

GE will own 46% of AerCap once the deal is complete and will place two directors on its board of directors. Photo: Boeing

Notably, the GECAS purchase would mean AerCap would have a fleet three times larger than second-place rival Avolon. This could raise eyebrows at the EU, possibly forcing AerCap to reduce its total fleet in order to meet demands. More will be known in the coming weeks once the EU makes its decision.

Stronger year coming

After a relatively challenging year, aircraft lessors are looking forward to a much stronger year for demand. While the market remains turbulent in the short term due to an excess of aircraft and lower lease rentals, growth remains on the table. The global leasing market will increase 8.5% year-on-year in 2021 and grow by $14.5bn over the next four years. Some lessors even increase their profits and revenues in 2020, including BOC Aviation, which aggressively expanded its fleet.

For AerCap, the coming year will see it grow dramatically in size as it looks to press its advantage in the leasing market.

What do you think about AerCap’s recent quarter? Will leasing make a speedy recovery? Let us know in the comments!

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