AerCap, the world's largest aircraft lessor, has announced an increase in its full-year earnings guidance and a $500 million expansion of its share buyback program. This move reflects the company's confidence in the robust demand from a booming airline industry.
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Upward Revision of Earnings Forecast
AerCap has raised its full-year adjusted earnings per share (EPS) forecast to approximately $9.50. This is a significant increase from the previous forecast of $8.50-$9.00 made three months ago. The upward revision of the earnings forecast is a positive indicator of the company's performance and future prospects.
Expansion of Share Buyback Program
In addition to raising its earnings forecast, AerCap has also expanded its share buyback program by $500 million. This takes the total authorizations for the year to $2.65 billion. The expansion of the share buyback program is a clear demonstration of AerCap's confidence in its current valuation and future growth.
Robust Demand from the Booming Airline Industry
The driving force behind these optimistic moves is the robust demand from a booming airline industry. Basic lease rates in the three months to the end of September were up 7% on the same period last year, indicating a strong recovery and growth in the airline industry.
CEO's Statement
"Our underlying business continues to perform well and demand for our assets remains robust," said Chief Executive Officer Aengus Kelly. This statement underscores the company's strong performance and optimistic outlook. In conclusion, AerCap's decision to raise its annual earnings forecast and expand its share buyback program signals a positive outlook for the company. It reflects strong confidence in its business performance and future growth, driven by robust demand from a booming airline industry.
