Net income for the first quarter of 2024 was $604 million, or $3.02 per share. Adjusted net income for the first quarter of 2024 was $658 million, or $3.29 per share. Raising full year 2024 adjusted earnings per share guidance to approximately $9.20. DUBLIN, May 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 first quarter of 2024. "AerCap continued its strong performance during the first quarter. Our business is performing very well and  the demand for our aviation assets remains robust," said Aengus Kelly, Chief Executive Officer of AerCap. "During the quarter, we generated adjusted net income of $658 million and adjusted earnings per share of $3.29, as well as operating cash flow of $1.4 billion. As a result of this strong start to the year, we are raising our earnings guidance for the full year 2024." Highlights: Increasing full year 2024 adjusted earnings per share guidance to approximately $9.20, not including any gains on sale for the remainder of the year. Return on equity of 14% and adjusted return on equity of 16% for the first quarter of 2024. Adjusted debt/equity ratio of 2.40 to 1 as of March 31, 2024. Unlevered gain on sale margin of 21% for assets sold in the first quarter of 2024, or 1.72x book value on an equity basis. Cash flow from operating activities of $1.4 billion for the first quarter of 2024. Book value per share of $87.47 as of March 31, 2024, an increase of approximately 27% from March 31, 2023. Returned $336 million to shareholders through the repurchase of 4.3 million shares during the first quarter of 2024, at an average price of $77.89 per share. Revenue and Net Spread Three Months Ended March 31, 2024 2023 % increase/(decrease) (U.S. Dollars in millions) Lease revenue:    Basic lease rents $1,586 $1,537 3 %    Maintenance rents and other receipts 179 187 (4 %) Total lease revenue 1,765 1,724 2 % Net gain on sale of assets 160 100 60 % Other income 93 42 120 % Total Revenues and other income $2,018 $1,866 8 % Basic lease rents were $1,586 million for the first quarter of 2024, compared with $1,537 million for the same period in 2023. Basic lease rents for the first quarter of 2024 were negatively impacted by $33 million of lease premium amortization. Maintenance rents and other receipts were $179 million for the first quarter of 2024, compared with $187 million for the same period in 2023. Maintenance rents for the first quarter of 2024 were negatively impacted by $35 million as a result of maintenance rights assets that were amortized to revenue. Net gain on sale of assets for the first quarter of 2024 was $160 million, relating to 43 assets sold for $920 million, compared with $100 million for the same period in 2023, relating to 35 assets sold for $639 million. The increase was primarily due to the volume and composition of asset sales. Other income for the first quarter of 2024 was $93 million, compared with $42 million for the same period in 2023. The increase was primarily driven by higher interest income.  Three Months Ended March 31, 2024 2023 % increase/(decrease) (U.S. Dollars in millions) Basic lease rents $1,586 $1,537 3 % Adjusted for: Amortization of lease premium/deficiency 33 43 (21 %) Basic lease rents excluding amortization of lease premium/deficiency $1,618 $1,579 2 % Interest expense 492 436 13 % Adjusted for:    Mark-to-market of interest rate caps and swaps (3) (14) (79 %) Interest expense excluding mark-to-market of interest rate caps and swaps 488 423 15 % Adjusted net interest margin (*) $1,131 $1,157 (2 %) Depreciation and amortization (633) (611) 4 % Adjusted net interest margin, less depreciation and amortization $497 $546 (10 %) Average lease assets (*) $60,458 $59,398 2 % Annualized net spread (*) 7.5 % 7.8 % Annualized net spread less depreciation and amortization (*) 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 caps and swaps was $488 million for the first quarter of 2024, compared with $423 million for the same period in 2023. AerCap's average cost of debt was 3.9% for the first quarter of 2024 and 3.3% for the same period in 2023, excluding debt issuance costs, upfront fees and other impacts. Selling, General and Administrative Expenses Three Months Ended March 31, 2024 2023 % increase/ (decrease) (U.S. Dollars in millions) Selling, general and administrative expenses (excluding share-based compensation expenses) $94 $84 12 % Share-based compensation expenses 25 27 (5 %) Selling, general and administrative expenses $119 $111 7 % Selling, general and administrative expenses were $119 million for the first quarter of 2024, compared with $111 million for the same period in 2023. The increase was primarily driven by higher compensation-related, IT and other expenses. Other Expenses Leasing expenses were $149 million for the first quarter of 2024, compared with $226 million for the same period in 2023. Leasing expenses for the first quarter of 2024 were negatively impacted by $17 million of maintenance rights and lease premium asset amortization. The decrease in leasing expenses was primarily due to lower amortization of maintenance rights and lease premium assets recognized during the first quarter of 2024, compared with the same period in 2023. Effective Tax Rate AerCap's effective tax rate was 14.3% for the first quarter of 2024, compared to an effective tax rate of 14.0% for the first 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 March 31, 2024 March 31, 2023 (U.S. Dollars in millions, except share and per share data) Total AerCap Holdings N.V. shareholders' equity $16,956 $16,045 Ordinary shares outstanding 198,342,820 237,537,375 Unvested restricted stock (4,503,640) (4,905,281) Ordinary shares outstanding (excl. unvested restricted stock) 193,839,180 232,632,094 Book value per ordinary share outstanding (excl. unvested restricted stock) $87.47 $68.97 Financial Position  March 31, 2024 December 31, 2023 % increase/ (decrease) over December 31, 2023 (U.S. Dollars in millions) Total cash, cash equivalents and restricted cash $1,485 $1,825 (19 %) Total assets 71,105 71,275 — % Debt 45,724 46,484 (2 %) Total liabilities 54,149 54,686 (1 %) Total AerCap Holdings N.V. shareholders' equity 16,956 16,589 2 % Flight Equipment  As of March 31, 2024, AerCap's portfolio consisted of 3,427 aircraft, engines and helicopters that were owned, on order or managed. The average age of the company's owned aircraft fleet as of March 31, 2024 was 7.4 years (4.6 years for new technology aircraft, 14.4 years for current technology aircraft) and the average remaining contracted lease term was 7.2 years. 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 understanding of our performance. These measures and metrics should not be viewed in isolation and should only be used in conjunction with and as a supplement to our U.S. GAAP financial measures. Non-GAAP measures and metrics are not uniformly defined by all companies, including those in our industry, and so this additional information may not be comparable with similarly-titled measures and metrics and disclosures by other companies. Adjusted net income / earnings per share, adjusted return on equity and adjusted earnings per share guidance Adjusted net income is calculated as net income excluding the after-tax impact of the amortization of maintenance rights and lease premium assets recognized under purchase accounting and net recoveries related to the Ukraine Conflict. Adjusted earnings per share is calculated by dividing adjusted net income by the weighted average of our ordinary shares outstanding. Adjusted return on equity is calculated by dividing adjusted net income by average shareholders' equity. Given the relative significance of these items during 2024, we have chosen to present this measures in order to assist investors in their understanding of the changes and trends related to our earnings. Three months ended March 31, 2024 Net income Earnings per share (U.S. Dollars in millions, except per share data) Net income / earnings per share $604 $3.02 Adjusted for: Amortization of maintenance rights and lease premium assets recognized under purchase accounting (*) 86 0.43 Net recoveries related to Ukraine Conflict (23) (0.11) Income tax effect of above adjustments (9) (0.05) Adjusted net income / earnings per share $658 $3.29 Average AerCap Holdings N.V. shareholders' equity $16,772