Aercap (NYSE:AER) reported 2Q2020 earnings this week and results have shown that they are the surprise winner in the airline industry selloff.
Note: Please click below to read my previous articles on Aercap
Q2 2020 Highlights
In Q2 2020, Aercap reported net income of $246 million and earnings per share of $1.92. Net income for 1H20 was $523 million and our EPS was $4.06. This was 21% lower yoy.
Revenue for 2Q20 was $1.197bil, a decrease from $1.281 billion last year. Lease rents were down 12% due to a combination of;
- lease restructurings and extensions at lower rates. This means the remaining rental payments will be spread over the remaining term of the original lease plus the extension period.
- rental payments deemed no longer probable. Airline customers accounts for about 15% of their aggregate lease revenue.