Dublin-based lessor AerCap Holdings posted $265.8 million in third-quarter 2017 net profit, up 17.8% from $225.5 million net income in the year-ago quarter. AerCap said the result was primarily attributable to a $63.7 million net gain on the sale of 27 aircraft and reclassification of eight aircraft to finance leases during the quarter.

The company reported $1.3 billion in revenue for the quarter, up 3.9% from $1.2 billion in 3Q 2016. The lessor saw its basic lease rents revenue fall 5% during the quarter, attributable to the sale of mid-life and older aircraft in the intervening year—AerCap’s average lease assets in 3Q 2017 totaled $34 billion, compared to $34.6 billion in lease assets in 3Q 2016. Maintenance rents and other receipts revenue increased 77% year-over-year (YOY) to $163 million, primarily the result of lease terminations during the third quarter. Third-quarter net gain on sale of assets revenue, reflecting the sale of the 27 aircraft, nearly tripled YOY.

The lessor’s third-quarter expenses totaled $975.9 million, up 0.9% YOY; operating income for the quarter came to $298 million, up 15.2% compared to 3Q 2016.

AerCap’s diluted earnings per share for the quarter was $1.62, compared with $1.22 for 3Q 2016, a 33% increase YOY, attributable to the 3Q net gain from the sale of assets as well as the company’s repurchase of 30.4 million shares from July 2016 through September 2017.

During the third quarter, AerCap repurchased 5.4 million shares for $266 million; from January through Oct. 27, the company repurchased 19.2 million shares at the expense of $888 million.

In October, AerCap’s board authorized a new $200 million share repurchase program, which will run through March 31, 2018, extending the company’s earlier authorization in July for an up to $250 million share repurchase program running through Dec. 31.

The company reported 89 aircraft transactions during the quarter, 36 of which were widebodies. Fleet utilization for the quarter was 99.3%, with the average age of the company’s owned fleet, as of Sept. 30, coming to 7.1 years with an average remaining contracted lease term of 6.6 years.

As of the end of the third quarter, AerCap’s fleet comprised 982 owned aircraft, 82 managed aircraft and 29 aircraft owned by AerDragon, a non-consolidated joint venture. The company has 413 aircraft on order, including 187 Airbus A320neo family aircraft, 13 A350s, 104 Boeing 737 MAX family aircraft, 59 787s and 50 Embraer E190/195 E2s.

As of Sept. 30, 967 of AerCap’s owned aircraft were on lease to 177 customers in 75 countries. By Oct. 27, 14 of the remaining 15 off-lease aircraft were either re-leased or under commitments for re-lease, while the last aircraft have been designated for sale or parts.

Mark Nensel mark.nensel@penton.com