Highlights
Net income for the fourth quarter of 2022 was $495 million, or $2.04 per share.Adjusted net income for the fourth quarter of 2022 was $645 million, or $2.66 per share.Adjusted debt/equity ratio of 2.5 to 1 as of December 31, 2022.Record 299 transactions executed in the fourth quarter 2022, including 159 lease agreements, 43 purchases and 97 sales.$1 billion of sales in the fourth quarter of 2022, at a margin of 14%.93% of new aircraft order book placed through 2024.AerCap ratings upgraded to Baa2 by Moody's.
Aengus Kelly, Chief Executive Officer of AerCap, said: "We are pleased to report a record quarter of results for AerCap. Air travel demand continues to improve as more countries reopen their borders. The strong performance across all of our business lines reflects how well our teams are working together to deliver an extraordinary number of transactions, and clearly demonstrates the success of the GECAS acquisition, the successful integration of the two companies and the recovery in aviation. Broad-based demand, in tandem with a curtailed supply environment, is helping to drive lease rates higher across aircraft, engines and helicopters."
Basic lease rents were $1,494 million for the fourth quarter of 2022, compared with $1,283 million for the same period in 2021. The increase was primarily due to the impact of the GECAS acquisition. Basic lease rents were impacted by strong cash collections as well as $47 million of lease premium amortization.
Maintenance rents and other receipts were $140 million for the fourth quarter of 2022, compared with $97 million for the same period in 2021. Maintenance rents were reduced by $111 million as a result of maintenance right assets that were amortized to revenue.
Net gain on sale of assets for the fourth quarter of 2022 was $121 million, relating to 83 assets sold for $1 billion, compared with $25 million for the same period in 2021, relating to 24 assets sold for $412 million. The increase was primarily due to the higher volume and composition of asset sales.
Other income for the fourth quarter of 2022 was $74 million, compared with $38 million for the same period in 2021. The increase was primarily due to the receipt of unsecured claims and settlements.
As of December 31, 2022, AerCap's portfolio consisted of 3,532 aircraft, engines and helicopters that were owned, on order or managed. The average age of the company's owned aircraft fleet as of December 31, 2022 was 7.2 years (4.0 years for new technology aircraft, 13.4 years for current technology aircraft) and the average remaining contracted lease term was 7.3 years.
Revenue and Net Spread
Three months ended December 31, | Year ended December 31, | |||||||||||
2022 | 2021 | % increase/ | 2022 | 2021 | % increase/ | |||||||
(U.S. Dollars in millions) | (U.S. Dollars in millions) | |||||||||||
Lease revenue: | ||||||||||||
Basic lease rents | $1,494 | $1,283 | 16 % | $5,982 | $3,891 | 54 % | ||||||
Maintenance rents and other receipts | 140 | 97 | 45 % | 549 | 521 | 5 % | ||||||
Total lease revenue | 1,634 | 1,380 | 18 % | 6,531 | 4,412 | 48 % | ||||||
Net gain on sale of assets | 121 | 25 | 395 % | 229 | 89 | 156 % | ||||||
Other income | 74 | 38 | 94 % | 254 | 723 | (65 %) | ||||||
Total Revenues and other income | $1,829 | $1,442 | 27 % | $7,014 | $5,224 | 34 % | ||||||