DUBLIN - AerCap Holdings N.V. (NYSE: AER), a global leader in aviation leasing with a market capitalization of $17.77 billion, has entered into lease agreements for two Boeing (NYSE:BA) 737-800 aircraft with Saudi Arabia's Aloula Aviation, a subsidiary of Aramco (TADAWUL:2222). The aircraft will be used for transporting Aramco Group passengers within the Kingdom (TADAWUL:4280). AerCap maintains impressive gross profit margins of nearly 58%, according to InvestingPro data.
This deal marks a continuation of AerCap's relationship with Aramco, which has previously included helicopter leasing through AerCap's Milestone (WA:MMD) Aviation. Aengus Kelly, CEO of AerCap, expressed satisfaction with the expansion of their partnership into passenger aircraft leasing, emphasizing the synergy between AerCap's business lines. With a strong financial health score and trading at a P/E ratio of 7.4, InvestingPro analysis reveals 12 additional key insights about AerCap's investment potential.
Captain Khalid Alnatour, CEO of Aloula Aviation, highlighted the importance of this partnership for Aloula's mission to deliver premier aviation services in Saudi Arabia. The addition of the Boeing 737-800 aircraft is expected to bolster Aloula's service capabilities to meet the demands of the Kingdom's aviation sector.
AerCap boasts a diverse customer base of around 300, offering comprehensive fleet solutions. With offices worldwide, AerCap's strategic market position is supported by an attractive order book.
Aloula Aviation, with a history dating back to 1934, has grown to operate more than 60 aircraft and regularly serves 18 airports across Saudi Arabia. The company plays a significant role in the Kingdom's aviation development, managing several airports and over 300 helipads.
The press release also included forward-looking statements regarding future performance and events, cautioning that such statements are predictions based on current expectations and subject to risks and uncertainties. These forward-looking statements should not be relied upon as guarantees of future performance.
This expansion into aircraft leasing with Aloula Aviation reflects AerCap's commitment to supporting the growth of aviation services in Saudi Arabia. The company's stock has delivered an impressive 30.6% return year-to-date, with analysts maintaining a bullish outlook. For detailed analysis and comprehensive insights, investors can access AerCap's full Pro Research Report, available exclusively on InvestingPro. The information for this article is based on a press release statement and financial data from InvestingPro.
In other recent news, AerCap Holdings has been in the spotlight due to robust financial performance and raised full-year earnings guidance. The aircraft leasing company reported an adjusted net income of $463 million, or $2.41 per share, and a record operating cash flow of $5.6 billion over the past twelve months. Goldman Sachs resumed coverage on AerCap, issuing a Buy rating and setting a 12-month price target of $119.00, while Citi reaffirmed its Buy rating on AerCap and raised the price target to $117.00 from $113.00. These upgrades reflect strong demand for AerCap's diversified portfolio of aviation assets and anticipated improvements in lease mix. In addition to these developments, AerCap declared a quarterly dividend of $0.25 per share and announced a new $500 million share repurchase authorization. Despite delivery delays from Boeing and Airbus impacting its fourth-quarter delivery expectations, AerCap maintains a strong liquidity position with approximately $23 billion in sources and a leverage ratio of 2.4 to 1. These recent developments suggest a positive trajectory for AerCap's financial performance in the coming years.
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