AerCap is reported to be placing an order for 15 Boeing 787 jets, per industry sources on Monday. If confirmed, the deal would broaden AerCap's long-haul backlogs and reinforce Boeing's 787 production cadence. The move could lift near-term sentiment for AER and BA, though the absence of official confirmation keeps execution risk high.
AerCap anticipates that rising fuel prices, expected to last three to six months, could exert pressure on the airline industry but may create significant advantages for aircraft lessors. As the world's largest aircraft leasing company, AerCap stands to gain from potential increased demand for leasing rather than purchasing jets amid industry challenges.
AerCap has inked a deal for 100 new Airbus A320neo aircraft, marking its largest order for this model. This strategic move not only enhances AerCap's fleet but is also expected to drive long-term growth and optimize partnerships in the aviation sector.
AerCap's CEO has advised investors to remain calm regarding recent geopolitical and economic uncertainties, highlighting the stability of long-term cycles in aviation financing. This reassurance may bolster investor confidence in AER as a resilient player in the aircraft leasing industry.
AerCap reported record third-quarter adjusted EPS results on October 29. The company's asset sales generated $332 million in quarterly gains, a record high. AerCap's total recoveries from the Ukraine conflict reached $2.9 billion. AER shares gained approximately 8% over the last five days. AER's RSI at 70.3 indicates the stock is approaching overbought conditions.
AerCap indicates a severe shortage of widebody jets in the market. Boeing and Airbus are not expected to increase production significantly this decade.