Net income for the second quarter of 2024 was $448 million, or $2.28 per share. Adjusted net income for the second quarter of 2024 was $592 million, or $3.01 per share. Raising full year adjusted earnings per share guidance from approximately $9.20 to approximately $10.25, not including any gains on sale in the second half of 2024. DUBLIN, Aug. 1, 2024 /PRNewswire/ -- AerCap Holdings N.V. (NYSE:AER), the industry leader across all areas of aviation leasing, today reported strong financial results for the second quarter of 2024. "In an industry environment that has remained positive, AerCap continued to produce strong results in the second quarter. We were pleased to receive credit rating upgrades from Moody's and S&P reflecting the company's best-in-class performance. We continue to actively deploy capital for growth opportunities and to return capital through share repurchases and dividends to our shareholders. As a result of our outperformance during the first half of the year and our positive outlook going forward, we have raised our earnings guidance for the full year," said Aengus Kelly, Chief Executive Officer of AerCap. Highlights: Return on equity of 11% and adjusted return on equity of 14% for the second quarter of 2024. Entered into an agreement with Airbus in July 2024 to purchase 36 A320neo Family aircraft, to be leased to Spirit Airlines upon delivery in 2027 and 2028. Adjusted debt/equity ratio of 2.4 to 1 as of June 30, 2024. Initiated quarterly dividend of $0.25 per share. Ratings upgraded to Baa1 by Moody's and BBB+ by S&P; outlook revised to positive by Fitch. Unlevered gain on sale margin of 20% for assets sold in the second quarter of 2024, or 1.7x book value on an equity basis. Cash flow from operating activities of $1.4 billion for the second quarter of 2024. Book value per share of $89.47 as of June 30, 2024, an increase of approximately 25% from June 30, 2023. Returned $345 million to shareholders through the repurchase of 3.9 million shares during the second quarter of 2024, at an average price of $88.66 per share. Increased full year 2024 adjusted earnings per share guidance from approximately $9.20 to approximately $10.25, which does not include any gains on sale in the second half of 2024. Revenue and Net Spread Three Months Ended June 30, Six months ended June 30, 2024 2023 % increase/ (decrease) 2024 2023 % increase/ (decrease) (U.S. Dollars in millions) (U.S. Dollars in millions) Lease revenue:    Basic lease rents $1,568 $1,561 0 % $3,153 $3,098 2 %    Maintenance rents and other receipts 180 156 15 % 359 343 5 % Total lease revenue 1,748 1,717 2 % 3,512 3,441 2 % Net gain on sale of assets 129 166 (22 %) 289 265 9 % Other income 81 41 98 % 175 83 111 % Total Revenues and other income $1,958 $1,924 2 % $3,976 $3,789 5 %   Basic lease rents were $1,568 million for the second quarter of 2024, compared with $1,561 million for the same period in 2023. Basic lease rents for the second quarter of 2024 were negatively impacted by $32 million of lease premium amortization. Maintenance rents and other receipts were $180 million for the second quarter of 2024, compared with $156 million for the same period in 2023. Maintenance rents for the second quarter of 2024 were negatively impacted by $99 million as a result of maintenance rights and lease premium assets that were amortized to revenue. Net gain on sale of assets for the second quarter of 2024 was $129 million, relating to 31 assets sold for $793 million, compared with $166 million for the same period in 2023, relating to 52 assets sold for $818 million. The decrease was primarily due to the volume and composition of asset sales. Other income for the second quarter of 2024 was $81 million, compared with $41 million for the same period in 2023. The increase was primarily driven by higher interest income.   Three Months Ended June 30, Six months ended June 30, 2024 2023 % increase/ (decrease) 2024 2023 % increase/ (decrease) (U.S. Dollars in millions) (U.S. Dollars in millions) Basic lease rents $1,568 $1,561 0 % $3,153 $3,098 2 % Adjusted for:    Amortization of lease premium/deficiency 32 41 (20 %) 66 84 (21 %) Basic lease rents excluding amortization of lease premium/ deficiency $1,600 $1,603 0 % $3,219 $3,182 1 % Interest expense 478 427 12 % 970 864 12 % Adjusted for:    Mark-to-market of interest rate derivatives (5) 3 NA (8) (11) (27 %) Interest expense excluding mark-to-market of interest rate derivatives 474 430 10 % 962 853 13 % Adjusted net interest margin (*) $1,126 $1,172 (4 %) $2,257 $2,329 (3 %) Depreciation and amortization (636) (616) 3 % (1,270) (1,226) 4 % Adjusted net interest margin, less depreciation and amortization $490 $557 (12 %) $987 $1,103 (11 %) Average lease assets (*) $60,237 $59,656 1 % $60,347 $59,432 2 % Annualized net spread (*) 7.5 % 7.9 % 7.5 % 7.8 % Annualized net spread less depreciation and amortization (*) 3.3 % 3.7 % 3.3 % 3.7 % (*) Refer to "Notes Regarding Financial Information Presented in This Press Release" for details relating to these non-GAAP measures and metrics   Interest expense excluding mark-to-market of interest rate derivatives was $474 million for the second quarter of 2024, compared with $430 million for the same period in 2023. AerCap's average cost of debt was 3.8% for the second quarter of 2024 and 3.4% for the same period in 2023, excluding debt issuance costs, upfront fees and other impacts. Selling, General and Administrative Expenses Three Months Ended June 30, Six months ended June 30, 2024 2023 % increase/ (decrease) 2024 2023 % increase/ (decrease) (U.S. Dollars in millions) (U.S. Dollars in millions) Selling, general and administrative expenses (excluding share-based compensation expenses) $93 $98 (5 %) $187 $182 3 % Share-based compensation expenses 32 22 48 % 58 49 18 % Selling, general and administrative expenses $125 $120 5 % $245 $230 7 %   Selling, general and administrative expenses were $125 million for the second quarter of 2024, compared with $120 million for the same period in 2023. The increase was primarily driven by higher share-based compensation expenses, which included some upfront recognition of expenses. Other Expenses Asset impairment charges were $28 million for the second quarter of 2024, compared with $2 million recorded for the same period in 2023. Asset impairment charges recorded in the second quarter of 2024 primarily related to the return of older aircraft and were offset by related maintenance revenue. Leasing expenses were $173 million for the second quarter of 2024, compared with $229 million for the same period in 2023. Leasing expenses for the second quarter of 2024 were negatively impacted by $37 million of maintenance rights amortization. Effective Tax Rate AerCap's effective tax rate was 15.5% for the second quarter of 2024, compared to an effective tax rate of 14.1% for the second quarter of 2023. The effective tax rate is impacted by the source and amount of earnings among our different tax jurisdictions as well as the amount of permanent tax differences relative to pre-tax income or loss, and certain other discrete items. Book Value Per Share June 30, 2024 June 30, 2023 (U.S. Dollars in millions, except share and per share data) Total AerCap Holdings N.V. shareholders' equity $17,016 $16,312 Ordinary shares outstanding 195,159,322 232,505,493 Unvested restricted stock (4,975,247) (4,233,182) Ordinary shares outstanding (excl. unvested restricted stock) 190,184,075 228,272,311 Book value per ordinary share outstanding (excl. unvested restricted stock) $89.47 $71.46 Dividend paid per ordinary share $0.25 —   Financial Position  June 30, 2024 December 31, 2023 % increase/ (decrease) over December 31, 2023 (U.S. Dollars in millions) Total cash, cash equivalents and restricted cash $1,612 $1,825 (12 %) Total assets 71,107 71,275 0 % Debt 45,697 46,484 (2 %) Total liabilities 54,090 54,686 (1 %) Total AerCap Holdings N.V. shareholders' equity 17,016 16,589 3 %   Flight Equipment  As of June 30, 2024, AerCap's portfolio consisted of 3,492 aircraft, engines and helicopters that were owned, on order or managed. The average age of the company's owned aircraft fleet as of June 30, 2024 was 7.4 years (4.7 years for new technology aircraft, 14.5 years for current technology aircraft) and the average remaining contracted lease term was 7.4 years. Dividend In July 2024, AerCap's Board of Directors declared a quarterly cash dividend of $0.25 per share, with a payment date of September 5, 2024, to shareholders of record of AerCap ordinary shares as of the close of business on August 14, 2024. Notes Regarding Financial Information Presented in This Press Release The financial information presented in this press release is not audited. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. The following are definitions of non-GAAP measures and metrics used in this press release. We believe these measures and metrics may further assist investors in their ...