AER - Earnings call transcript Q2 2021

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Operator

Good day and welcome to the AerCap Holdings N.V.

Second Quarter 2021 Financial Results. 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

hello, and operator you, everyone. Thank second Welcome conference XXXX to our call. quarter Executive today Peter Kelly is me Officer, Juhas. our Officer, With Financial Chief Aengus Chief and our

Before which are to historical facts, would statements we statements. during not call, forward-looking that made call you some like conference this maybe begin today's remind I

A other call risks by aercap.com. uncertainties statements. may This performance materially on or that to and in concerning be public will such dated be cause AerCap's Further at found those looking copy that presentation call. our or for forward-looking from being earnings website open results in aercap.com or is XXXX. and Forward revise expressed imposed release and after arise simultaneously future of statements statements and release actual undertakes are than is no materially publicly information update to webcast obligation AerCap replay. the this issues available involve conference circumstances affect law events, the differ that not to can events to earnings any call or information XX, implied could reflect archived July at

for and We through run our the earnings allow will time at presentation, end shortly Q&A. we'll

analysts a now follow one up. Aengus As turn to limit I the ask I reminder, question would that Kelly. will to themselves and one call over

Aengus Kelly

major of an for unprecedented for air recovery that headline income, the report second our is witnessing airline net share. markets. you travel the the industry us in positive quarter call. joining million per is rapid The world's And for of quarter strong earnings in many of and to thank earnings quarter I'm $X.XX earnings Good pleased morning, with everyone. or of XXXX $XXX

our to For increased our in and has the AerCap, led a flows for period. significant increase demand cash aircraft this for

This by the Delta the daily caused positive to clear illness. environment, clear the protecting link With leasing the opportunities highly deaths a the unvaccinated. Looking we are for sheet to six remainder with a solid early about between improving is in months the an setbacks huge XX.X% the having COVID impact, the confidence to into of against expect But strength passengers past along look X around efficacy given from markets and XXXX day, in more And again. made excited XX% X, signs is environment, the July, has to data levels. administration. near were TSA is and no the million in will a around marked XXX% ahead which that XXXX, same taken has six When U.S., one the at is flights We the many airlines transatlantic XX% consistently further, will The is in have for relax variant in There than becoming Europe In clearly restrictions rates this for Digital important the life, travel. last This vaccination of reflects they even contagious the flying program be This American vaccines, meaningful on year. governments the in XXXX Slide people plenty flows as way. the air suggests period infection ahead, as evidence percentage borders further rebound, some COVID-XX. around been AerCap. feed most including the improvement the grow in fact course day, global months, vaccinated. would accepted by China, of and related a there of of the that increasingly U.S. of by and the travel. for as the the cash get well air the EU profitable travel the of of the serious the illness serious shows their Europeans flying in which citizens U.S. together against now which world a we flights there we're be in XX,XXX balance flights XXXX. leasing is may the U.S. optimistic world's you levels. world. of in that EU is can doubt in lie amongst rebound reciprocated earnings, in progress growth According show CDC, stronger of and be all the we reducing in of the strong daily travel AerCap. the see world. surpassed the world global there for the over a China Europe, approximately air XX% a The of for is our opened in hope is non-essential XX,XXX commercial be which These COVID around which countries, term particularly XX action will passenger which of for room numbers of Certificate which already made by the XX up routes throughput improvement. to the particular markets,

significant scale country, To made So, swiftly countries that air and in countries through program. rollout from that COVID-XX is in has of have Gavi COVAX access contribution thereafter. the $XXX,XXX lower the made recovery up while clear AerCap it the of by income end, pace progress equitable vaccinations to vaccination support a follows the of that travel varies those

be to higher cash from our expressing recovery vaccinated. industry will this are and requests fewer our we assistance until for not customers. everyone seeing also in numbers, Our the including back itself opportunity collections, same activity, increased leasing be airline AerCap, the has Getting to

second a a reduction continue in result. face there AerCap receivables, and the cash are trade While saw operating a flow was as up deferral the balance, reduction of parts XX% quarter undoubtedly world, which challenges, in XX% in the to our

uplift a collections. in continues too pace, So, as gather we the recovery benefit our to should from further

signed front, activity XX for quarter, we in leasing lease XX agreements including leases. the widebody aircraft the On

of addition modernization to Delta help was In AXXX we long-term targets. look we further and which and agreements landmark efficiency the fleet forward with seven lease relationship aircraft, Delta. for enhancing executed Dallas's will this, a to This also with support our deal, Airlines

claim by a We from Airlines $XXX for more of part also subject we end. several monetize million our LATAM $XXX confirmation receive million. to to And court expect year

we to the Turning on to day to transaction, work continue various the hit progress GECAS we ensure ground ready to running streams one. the from integration are make

received our including approvals in fourth already This we States to far, and important so United jurisdictions expect a And closing. have the We continue is Europe. number a quarter line with expectations. of in

much what GECAS we largest followed we were have as then. our for transaction, many saw liked We due for closely peer our years. the completing we very When diligence

our as I about faster much that the stronger truly from takes our believe be anticipated this offer and recovery than company are than to able in was more ever. customers enthusiastic Now, case, pandemic service a to the transaction. our will hold underwriting even combined emerge we best-in-class

the stronger is factors and look proud I'm last as so the air are the effective. So, travel, all company to vaccine people are a stronger. More These over up what AerCap. months. course of of aircraft XX forward, for countries we global and financial our and the have leasing growing opening our rollout demand proving more contributing to for achieved performance is

lies for imaginable have lower We're With navigated transaction with will balance that, strong ahead. successfully stress leverage way our have benefits through Thank what the and financial our toughest and emerged that a a excited years you. test about Pete provide the AerCap for call truly come. to performance. an of will We hand many sheet, exciting over I review to to

Peter Juhas

Thanks, Gus. Good morning, everyone.

for for was XXXX. Basically, of the second quarter $X.XXX This the quarter. second a rents flows were million the quarter revenues to significant transitions. primarily restructurings billion quarter. second total compared and were lower the of in cash includes which for We our in improvement accounting, to impact quarter, the Our second $XX due saw $X.XXX cash aircraft airline the billion in

the $XXX cash $XXX increase from with in flow an Our million quarter. operations first million, from

$XXX a is of XXth, deferral June of XX% decrease XXst. of from million, March million $XXX As our as balance

from balance accounts March receivable decrease $XXX a as Our $XXX of XX% million XXst. was of million,

gain The quarter on was million $XXX in XX which sales terminations. million. increase second we rents of quarter net particularly number prior in the of our of of old, from rents own aircraft, we million second the the in a XXXX, XXXX. of the for average a million due year total lease aircraft Maintenance maintenance sold quarter, for in age the million, were our second and from $XX the quarter $XXX XX second an the down $XX In were high quarter, higher was was years $XXX of period. Our to sold

received Airlines and them end, proceeds earnings quarter for call, related first after I flow the of operating the the quarter. first sell on those portion not these $XXX million unsecured recognize LATAM cash the agreed As they're of Since we claims July, to early our included received quarter our mentioned proceeds quarter. were we've second to in and in in the

driver other claims claims, relating this was the million total, to for income in in so other We also unsecured other unsecured the received some income increase quarter. proceeds quarter, in which we from $XXX second the in recognize

million. remaining bankruptcy other to expect our those expect court, proceeds once during year the claims LATAM the are by from be this we We several of to receive claims those $XXX remainder proceeds approved and

expenses. to now Turning

were XXXX. Our the total from second million million $XXX of $XXX for increase expenses the slight a quarter, quarter for

assets. $XXX from $XXX to a lease average year, amortization primarily depreciation decrease a million, were expenses in Our due decrease last and million

last those more impairments terminations from sales, impairments related and for this Asset asset second offset aircraft. maintenance by than decrease a $XX year. million million to the were were $XX releases and The in lease quarter, quarter asset

$XXX And was was quarter that debt million decrease Our year. down lower due interest the last a $XXX to balance expense this quarter. million primarily for from

the $XX expenses lower due was credit expenses and the provisions XXXX. That during second compensation an to due $XX only the top maintenance primarily in from rights expense $X from last and expenses. mainly the million maintenance primarily million increase million, balance related timing Our million to SG&A the activity the $XX quarter the for year, for million was year. leasing a quarter, were in on was due maintenance the $XX quarter. million asset. lower And decrease of lower contributions of increase were decrease rights Other of last lesser down from expenses $XX to

the We which transaction also recognize expenses of bridge financing the to was fees. million, $XX GECAS related mainly

of of the income generated per all quarter putting $X.XX AerCap that second So, in net $XXX million, or together, share.

million As I of or $XX million pretax related costs includes $XX transaction to the mentioned, GECAS after that tax.

net $X.XX second $XXX income costs, was those share. quarter for million, per or the Excluding

maintain to a very continue We position. strong liquidity

well above the liquidity XXth, of $X.X to times. resulting As billion, sources current sources X.X were remains of our total uses months our of of June XX in target That ratio times. X.X next

excess continued remain $X.X coverage at to billion. high Our

balance and be low Our continues ratio a the currently with of X.X for our That sheet to well it's to strong record AerCap X.X X. ratio target to X. below represents that's leverage

percentage unencumbered assets. we of Our over XX% to at of secured debt remain low currently $XX total have assets. worth And billion continues

debt, average the X.X% costs excluding continues Our remain quarter. cost of debt second at to for low issuance

So, in this improve. summary, results to continue our quarter

needed debt, of well. our activity balance overall, contrast, happened cost. and almost sheets amounts and get In those to they up available what the airlines. balance where had picked versus our equity the of sheet downgraded. they their encumbered that of Our balance as to stand balance they at to it's funds, throughout were the the raise ratings balances and leasing AerCap's Most we through sheets. pandemic, raised to has receivable strong every order in up, accounts raise has In on operating airlines flow raise at is To sheet many cases, down. we And high remained their to our pandemic. look cash useful are has asset compare significant as deferrals And

Our X.X in X leverage it's today. ratio to December X.X was to X XXXX,

is debts prior the secured virtually COVID. Our assets same total to as was it

we with still beginning since us you actions of had leave the And the for the coming speed. decisive And the of operator, Q&A. taken recovery higher, unencumbered as up why advantage that currently have of into billion that the and call COVID, position we we've $XX air as the open worth well positioned believe to pandemic, can that travel take that's well assets. strong we that's Our liquidity over is gathering

Operator

[Operator you. our Please of first take We question Thank Helane Cowen. Becker ahead. from Instructions] go will

open. is line Your

Helane Becker

I everybody. Hi, operator. much, very Thanks well. everybody's doing hope

But if this soon. Maybe if aircraft right domestic know they're flying Max's answer if I stockpiling are, they So, Aengus could anytime to on you, demand, think of plan having the word. is don't get I'm cover don't that because lot don't know who it. would question. I leased a trying acquiring Chinese answer airlines you their to sense a

Aengus Kelly

Well, And the see of about can one see we've that three thing Helane the rebound you you surpassed the market the is has levels. rapid the can that in the major markets first on slide Chinese the world, seen there. XXXX traffic it's

our them don't are airplanes there. the of ago. customers ordered doing they the not all years. stockpiling taking And years they China they would Boeing can demand aircraft that say Airbus have several the in paid, a And they they They're carriers, of books not the ordered they to Chinese couple indeed, of And Chinese all of last in front has So, the carriers order huge airplanes I have aircraft, time been are satisfy well. in about see airplanes.

actually take can that airplanes, the we used we'll as market be as to we deals first the customers the go to forward. leasing means for expect leader, what for Chinese an that innovative put the market and on grow. book. things. first which have signed from do aircraft, Helane, from is for the to need demand we the our are these And into we thing they are do, used forward anyone order the be then we order continue And continues now done. off first China, aircraft that's seeing airplanes And that to is as the - will continuing to aircraft just to That what we have So, go

Helane Becker

And those signing or are or bodies Gotcha. narrow you're that both? widebodies

Peter Juhas

new and new technology, the bodies, predominant assets. its technology narrow capsule At moment, air widebody

Our first until one XXXX. isn't debatable

Helane Becker

Okay.

Peter Juhas

[Indiscernible]. We've placed everything off the

Helane Becker

getting answer. acquisition, other the light especially question you. about That's assets, not are VTOLs eVTOLs. helicopters, would thinking where then awesome. that but for you're eVTOL. thank be going Thank of And are a get GECAS bunch new necessarily of which on my this How you about a in then, to you is in? And technology that actually, Is those sort business you thinking of involved

Aengus Kelly

is GECAS our moment, focus transaction. the on Helane, At the

in expectation As I in of hadn't very of that lot the economies we were vaccine we a like the analysis, environment. looked of of to rolled has advanced December and out we of of different be of we travel, XXXX, recovery our in level said transpired. the in we XXXX, then in very now, like was started basis my even global to when a a GECAS the on January really resulting at what anywhere the increase And world, If in did the lot comments, look air be different to The it at deployment, vaccine honest. more the world. a we transaction a

being be the out Your reference will and prescriptions. before search go long are to eVTOLs a it helicopters, humans. long, the rescue long, that best do and and at it's coffees for local time delivered drones At any on moment,

Helane Becker

That's fair.

help a nice your much fair in enough. you answers. really for day. your very that's Okay, Thank Have

Aengus Kelly

Pleasure.

Operator

you. Thank

go Morgan. will question our next from JP of take ahead. Please Baker Jamie We

Jamie Baker

afternoon good everybody. Hey,

you're given sitting be making Mark raise, on a So, quarter that? stay what Any and here track you're pulling are front, thoughts in comfortable for on to fourth the items that on progress regulatory remaining the order on trigger the before the the might wondering debt closing? gating I

Aengus Kelly

- to regulatory not debt to And want the whether all the we're progress tremendous We get regulatory had in a approvals the but We all had the Jamie, financing, through approval, or and We've first. time vote fourth the the DOJ to on approval, had from shareholder AerCap. we're still. European as this at close I made Union looking think it's appropriate monitoring we've look track. quarter to we're quarter. you the

Jamie Baker

were ABS then, Okay, the And seen for recovery that in about stated agree. helps. we'd viscosity the And many thinking in given color of a lack that of in just the asset week, market for you aircraft term base that case And your that, that improved has the the market. looking Avalon better some that if values changed they just have on of pace sales at this all? Earlier bottomed. the mindset post-closing,

Aengus Kelly

Jamie. would, certainly I

underwriting had the around we the as I the think in to of Christmas pace economics last recall our year, a of different very recovery. transaction if back when agreeing we of outlook were I case, of again,

that As bid and see vaccine coming would asset Clearly, the at sell recover. you be on view before see our point And amounts is deployed we able sales time. not there that for case. was that be no recovering. would assets. assets, market the The it would longer of road the We in significant in to market is was a

continue be to case well. original confident sheet we would the of ahead that as I de-lever our will base so, And balance

Jamie Baker

that's guys. Okay, everybody. you much, helpful, very Thank

Aengus Kelly

Pleasure.

Operator

will Thank Harvey Instructions] you. [Operator come ahead. from from Our Davy. next Please Ross question go

Ross Harvey

perhaps there about customers around I around firstly, millions ask unsecured future? What expected them. year, that whom benefits underperformed of yet. figures you Hi, come claims. just are cover Gus, channel hi the that you the COVID mediclaims you just come hear to can with during of of of Also, whether we might out the Gus wanted might And type clarify other haven't this Pete. to just that later crackly the got your potential in particular we you further hundreds

Aengus Kelly

claim received your that first all, of Well, to from in question, have received $XXX cash of the was Xrd we the answer million on LATAM July.

improved meant is counterparty it's remainder that QX. noted, would included level the of and the claim, expect beyond to exposure operating the in its receive to expect had We performance outside would flow approval. claims recovery driven it the Other was us LATAM an Ross, claim Pete with that that subject that. of the that million cash size for are court will agreed of $XXX we and plus the year. this our as The several at of pay. And claim, of our materiality airline that they number not So itself and $XXX course have million operating that the given we what during to not

Ross Harvey

Okay that's Gus. good thanks,

Secondly, Am as I aircraft, if and purchases or the anything out there in the during behind doing QX increased that? there though QX. just Is take the book, was leaseback just math XX looks maybe at wrong it order at it book about by sale looking the a look I there? order

Aengus Kelly

which We extremely There an about response received was forward. about. MAXs we're that the MAX airplanes, happy It's taking customer going the transacted positive sale leaseback during we we're a confident delivery very quarter. base. in some of there from quite on And the started MAX

So, the those that's came where units in increase from.

Ross Harvey

Right. Thanks.

think I you. my questions. those were two Thank

Operator

take our next Please from will Sachs. from go Goldman question Cathy ahead. O'Brien We

Your open. line is

Cathy O'Brien

morning good for Hey the so everyone, thanks much time.

to coming has requests, highest higher should you than going been you're from the and puts is we quarter I this So, takes are other seeing start think Thanks. trends Just the any positive cash trend about? since given ops and there we and just the the think back forward? last on this pandemic. collections it of significantly Do to expect better deferral

Aengus Kelly

Cathy, was it sure, over a first for the significant quarter, quarter. into rates, cash they're very for second XXX% from improvement so collections was high Look the - it run seeing we're

continue. as that expect big continues, So, that to recovery was positive. trend a we the And see

overall So, I to and do the the amounts come up rates going of forward. cash expect both collection

are the new cash transition, as we'll the we is we've progresses. the aircraft currently think we transitioned, and see pick will in to increasing to over year the to of we're So revenues mean, going start course start deliver collections see the up as year, yes, see I that they I that

Cathy O'Brien

some is pretty status back aviation to great. market noted some tourist as seems in pre Have bank or making resurgence that credit for be you like love then, a of markets That's open, thoughts. Jamie seen sounds Thanks. We'd a of just pandemic, comeback. ABS open paper, get earlier, the And to debt declining capital quo? with kind high-level

Aengus Kelly

the keep tourists using I more in now, my certainly town term past. from think to there's educated

risk value to have a the See good in and assets, basis reward people think understood return. on profile that aircraft the return a to or capacity of is that those else were in those those a provide store the world have harvest fair a think the an does of of it And Tier they X pre risk manage assets, that I that knew value And that relative today. the of available pandemic, what who is industry resilience an asset. I what is player have for manager can investor. doing

there last we I say XXXX. will manager we lot think a the But So, pre those are exuberance was a robust platform I months think are that that. sales prior invested in a Cathy, a would pandemic like of or AerCap XX, life, be in for And XX get it things probably in to into as sophisticated and back. some market

Cathy O'Brien

At can sneak more I was of one Pete, a net flip impact if quarter, positive this that's cash million from first think do one, some to great, point modeling that going get $XX added $XXX down the back? to more million what That's Thanks. to revenue just accounting as you quarter. quick you

Peter Juhas

the so was accounting mentioned And to to accounting the course down. down in but cash going it we're I as cash before, year, the come do quarter. this continue, of impact expect during see I've Yeah,

then the been that will we to further airlines. placing - many so one-time $XX And have the normally are items trend what than it just But new This quarter down, then a little we aircraft cases million. with was continue. due aircraft, higher in happens when would than some a little these

those transition some there's so, And period for aircraft.

so, new as And was have I revenue delivered, you get the then to those they're saying, those aircrafts once once pickup. once lessees,

them again. revenue You start doing on

the terms as we'll in, flip that so, how continue. I progresses, of why we that really quarters say, that's And increased in this as lower, a are that's revenues. quarter. accounting cash see saw will couple year in that where And of But revenues will

Cathy O'Brien

you. Thank

Operator

We Mark go Barclays. of our will ahead. question from Please next take DeVries

Mark DeVries

GECAS faster [Technical you're to that is have Difficulty]? Difficulty] assume front deal. [Technical thanks. much not you Yeah, proceeds. going Should plan that to and Significant than Gus, interfere in de-lever this we the of your all indicated

Aengus Kelly

question. give bit just Excuse line just his sorry, next to go moment. opportunity It towards you the the like operator me, Operator? at an the Mark seems muffled end. might We'll is a

might just we in on So, Mark put queue we'll And to the next then the question. move back again.

Operator

Moshe question Credit our go take next will Please with We Orenbuch from ahead. Suisse.

Moshe Orenbuch

Great, thanks.

source Given you talk reporting had the and respect you less see aircraft where March GECAS could And back greater for sort to that in other just are as about how that? the that had you the stand the environment sales of outlook they with that and you today? deal it expectations and you think about

Aengus Kelly

Sure Moshe.

we'd And As we out look participants resilient now asset think managed. well we in the are to aircraft in have gather pace, forward, for the to that recovery the confident the the those far side GECAS quite said, understand strong the asset a an that of as been assets, bid prior that continues be there'll come as we aircraft the is, be markets transaction. and as right I who aircraft pandemic market how

Moshe Orenbuch

significantly collections the quarter. from talked I LATAM. an $XXX the then in just Peter million think expectation about it guess, time, QX I Also, had confusing, just assume, quarter good other significant first cash little Good, that's QX it's talked the bit opportunities received same couple or from you to or cash about improved, collections billion, to cash. of you $X.X in I collected. in of some obviously when obviously, you in But be at than mentioned think you about, mentioned in cash that's that is mean, you're hear. I a But you a was expecting your flows going some higher

quarters? little that as the guess next we're I how flow, can about talk those at impact looking will cash So, over bit your of a couple recoveries you

Aengus Kelly

Sure, Moshe.

I'd general, we these in as So, to about numbers, seen. be tend X.X I would conservative view say, pretty the probably you've

came that what Xrd, $XXX that I million right. that So, July the that includes mentioned in on incorporates that is

So, But anything any haven't recoveries else that's any that matter, frankly. airline beyond included recoveries for for in X.X. other or we other that LATAM that

projecting in CapEx enough at up. we number. cover to it as have order we that we and said, are conservative above our that doing to liquidity come if sure there, this historically very were I I'd and maturities But come surprised And coming put be look up in in So, we've we've the didn't been debt the make that out this.

So, it. that's something around And that's how not that we at mess with. want we to look

Moshe Orenbuch

it. so Got much. Thanks

Operator

of next Please Stephens. And go ahead. we'll take Caintic Vincent our question from

Vincent Caintic

taking you question. Thank for my

lease if about could I how expect should on going the was rate I could expectations. activity. question sort First you've talk if just portfolio portfolio wondering of, rate you we know improved us, you help forward.

Your coming down. are cash collections

portfolio that's restructuring us some forward? So, you've some the how think then I got the maybe And if maybe it. And some new you leases. where you've great. to had of But aspect also help leases rate forecast, there's lease variable you. understand could going Thank

Aengus Kelly

Sure.

it's things really So, terms about just lease to Vincent, was the same clarify that driven before. there, our cash of collections by the portfolio, in have down. trades But been going talking up, I not

basic as are to the go it's accrual are That's in numbers start accounting, up. return So, regular back predominantly, trends on currently they cash those it's you coming accounting. that see as to mean, through. currently regular are transitioning, those aircraft And will lease service, that or when picking I that lease, those aircraft

the So, than really, up, that's drive go it's year. collections will the of it And that what will course the said, expect so as that I more cash during I number. do

Vincent Caintic

apologies and for that. Right,

of And aircraft the or like returning, chunk I of back on are like Is we lease. service can see a and back these a timeframe where so generating coming you aircraft those guess, there rents? sort at

Aengus Kelly

Yeah, of the most next it of will bulk that's what but when really That's couple the six mean, to over it so. happen. the I quarters. It's I or over months of spread seven would really at. look out, next

Vincent Caintic

you. is Thank particularly share so on management second great. And buyback. and capital Okay, and question, this

the then we is know GE have lowest X.X I pending leverage but So, times. your the acquisition

aircraft. sale You've of gains got on good

You've millions these claims the in and in. was cash of unsecured are that hundreds got collections are cash and coming more improving

your at trading and then the stocks book values XX So, XX. while finally,

until pause price? you. the there? the maybe going of what wondering are your thoughts lower acquisition of advantage just So, to share GE complete, Are taking is you to Thank continue any or thoughts maybe

Aengus Kelly

Well, trajectory. get is on the want We upward about the today, done. getting to the focus rating the all business GECAS back acquisition

you there rating held to prior prudent And we the the As to upgrades from capital. time. to throughout that we'll Moody's an managers we of would we from on And job move number decisions get trajectory, just forward, recall, at as investment be on may as want stewards the the the grade put we back the ourselves right take the pandemic. seen always were the side. pandemic, And we one. you've the upward to us where racing that point very And then far verge and of

Vincent Caintic

Understood, you very much. thank

Operator

question America. Please [Operator will We Epstein next from Bank from go Instructions] ahead. take our Ron of

Ron Epstein

Good How be gift customers see reacting some to impact guys. walkaway are on ways, of you to you view, It's until Good that it? understanding afternoon. the seems your read a year, might in price? rights, that And Just program keeps from XXX? you the the, next not your very late are can from delivered Hey negotiate [ph] you point in that do have many any our giving? seeing morning. What year? maybe early or aircraft

Aengus Kelly

ever XXX widebody introduced. has popular the Well been Ron, most the

So, confidence in the aircraft. we have tremendous

markets, not place XXXX. the route, for As At return was the currently our on the do No than they that, for XXXs expect like any being normal course aircraft of the North delivering, going and from to though to delivery what right And have of they Boeing, that's customer we'd moment, is I with be XXX. is leased don't perspective, are we're I Boeing only half are have market you announced the biggest and course, the of to our the in with world until at general, outcome. see, the that the We to moment as traffic less widebody built. of the they process widebody on have. working it think know do deliver, held think and inventory we would because yesterday, doubt. Atlantic in and well

same you United in term, our improve North is near rate substantially as that have a reciprocate States. has aircraft well. would the the to hopeful most in do But saw to the at the moment opened up American is whole non-essential as United that. on demand the vaccination materially based the the will It'll will States. and Western As travel level chart, vaccination fairness, huge we the And administration benefit in in have the for of Americans. U.S. we market countries, what's to Europeans to European the those ahead it. as be Atlantic the saw the a as And the of industry And of Union in It Europe.

I So, can relation and think XXX that we in those our to running. program, get do up markets

I think U.S. for it'll be a as the aerospace big a whole. industry boost

Ron Epstein

XXXs take you idea? you are expecting And the to of delivery then when now? any have Do

Aengus Kelly

we're working be by Well, confidentiality case customer to the And with a And customer. specifics for customer Boeing basis. go of it'll reasons in and by case we on a that. can't

Ron Epstein

is Mobility, guys you questions. of for Helane's just Got even this snippet, mean, thinking Air up anything to residual do then values? even? Can aircraft lessor? lessor? know think following just there it. eVTOL? be but question, I What for leased on in the about And Is one are giant there business a a interesting a those would there maybe one about I is how broadly Urban maybe

Aengus Kelly

move there. the asset globe. asset question around Ron, the on nail in one think value is the is Canada to the is can the to able a to be maybe big lessor's that do is to most it's a there I be mission, to you do Jakarta, do lessor work. to transitioned configured for you it I customers low But specific think The If Look, to A an the head hit time, are of applicability. product what globe, a that's and uniquely asset, for that there, vehicles electric another market from part an reconfigure need a coming. powered

sized timeframe to think a can that or not carry be and what altogether. whether aircraft matter missions given. the I humans, they another be commercially will as that's to that's The to can and

Ron Epstein

All you. it. right, Got cool. Thank

Operator

of ahead. from Our HSBC. will come Lobbenberg next Please question Andrew go

Andrew Lobbenberg

that to I'm that about going And know contrast intrigued sort I and efforts the the compare you Southeast is the constrained? XXs say orderly, is constrained to? remarket to what be you're But sense between of think I there. to you don't to work obviously you've ask the mean, really clearly Delta. to America completely much about think Asia. XXX individual other So, the nature may North moves the How development to relative within But But perhaps now for accepting can Hi on then And I the your in be they? Atlantic, you work? for exposure of it'll biggest and And too just of you it. attractions the client two be you, know, less ones you've Southeast interested quite contracts. how transactions question that value I'm those dramatic. you'll just companies the relative aviation industry is is restructurings, pain than after see, Latin my contrast do exposure of the aren't very they're the high obviously the would economics in understand daunting to the and and industry in and I area Asia the got which had how you,

Aengus Kelly

Sure.

Let question, book. me AerCap's our X% Southeast Asia the with of last is it. start exposure Andrew. That's to

the airlines were a been get business involved player and that really orders haven't massive on We big speculative there. sale the didn't leasebacks. placing We building in

know, the was didn't prior As sale a XXXX. we leaseback you to do think I it pandemic,

lot weren't of that's market leaseback we sale was. really and a the So, where

widebody referring placements the to you're two related as to. Now that

assets for doubt, the assets. is popular have And As have I AXXX XXX the And applicability in key to global you the the or aircraft. the portfolio in mid-size need that's that lessor earlier where and the the best-in-class demand. widebody XXX most the without best-in-class, question, larger there. out global widebody the is said And small is

for the demand is for It also look them. and that of us, for token, transaction. a capital. Norwegian that North slim the on one, actually So, was down a little can scenario, When in cost North we Airlines. itself. And Atlantic. shows materially it aircraft at were yes, there rather doing importantly, an in ones airplanes Delta significant get to Delta Two, twos. We in impact of have to much to that going happy were we raised of very Atlantic, those scale involved large not airline speaks it's where package away. very advantages no was transition what look, A than you course, same variable is in But help transition get And fleet, their transitions these key it by the expense. business model than

Andrew Lobbenberg

Yeah, fair thanks. right, enough. All

Operator

question-and-answer would hand conference today's session. closing to conclude any Aengus additional will the I like for remarks. Kenny, Mr. to This back or

Aengus Kelly

We earnings seeing operator. you, you to future. all person look you near the in Thank for Thank call. all for forward today joining in us the

assuming I Bank we be out a the person, other September be sooner you which think quite all will So, in number in better. see I'll well. person in can Deutsche at the of each Conference as the And

thank very indeed. So, you much

Operator

today's This participation. will for conference call. you all your conclude Thank

You may now disconnect.

AerCap (AER) 29 Jul 212021 Q2 Earnings call transcript