The highlights for the quarter include a new $500 million share repurchase program authorized and repurchased approximately 36 million shares in the year to date. GE's ownership decreased from 33.6% to 14.5% following a successful secondary offering in the third quarter of 2023, down from 45% at the beginning of the year. Cash flow from operating activities was $1.3 billion for the third quarter of 2023.
As of September 30, 2023, AerCap's portfolio consisted of 3,451 aircraft, engines and helicopters that were owned, on order or managed. The average age of the company's owned aircraft fleet as of September 30, 2023, was 7.3 years (4.4 years for new technology aircraft, 14.0 years for current technology aircraft) and the average remaining contracted lease term was 7.3 years.
Aengus Kelly, Chief Executive Officer of AerCap said: "This was another great quarter for AerCap. We generated an adjusted net income of $639 million and adjusted earnings per share of $2.81. As a result of this strong performance and our outlook for the rest of the year, we are once again raising our guidance for the year. Our underlying business continues to perform well and demand for our assets remains robust, evidenced by the significant number of transactions completed during the quarter. We are pleased to announce a new $500 million share repurchase program, taking total authorizations to $2.65 billion so far this year and underlying our confidence in the value on offer today,"
Basic lease rents were $1,575 million for the third quarter of 2023, compared with $1,473 million for the same period in 2022. Basic lease rents for the third quarter of 2023 were impacted by $41 million of lease premium amortization.
Maintenance rents and other receipts were $126 million for the third quarter of 2023, compared with $120 million for the same period in 2022. Maintenance rents for the third quarter of 2023 were impacted by $23 million as a result of maintenance rights assets that were amortized to revenue.
Net gain on sale of assets for the third quarter of 2023 was $130 million, relating to 45 assets sold for $682 million, compared with $69 million for the same period in 2022, relating to 30 assets sold for $373 million. The increase was primarily due to the volume and composition of asset sales.
Other income for the third quarter of 2023 was $61 million, compared with $62 million for the same period in 2022.
Recoveries Related to the Ukraine Conflict
During the third quarter of 2023, AerCap received cash insurance settlement proceeds of $646 million in full settlement of the insurance claims under the Aeroflot group's insurance policies in respect of 17 aircraft and five spare engines on lease to the Aeroflot group at the time of Russia's invasion of Ukraine in February 2022.
AerCap Presentation (aercap.com)
