AerCap Holdings N.V.

Good day, everyone, and welcome to AIRCAP's Q3 2024 financial results. Today's conference is being recorded, and a transcript will be available following the call on the company's website. At this time, I would like to turn the conference over to Joseph McGinley, Head of Investor Relations. Please go ahead, sir.

Thank you, Operator, and hello, everyone. Welcome to our third quarter 2024 conference call. With me today is our Chief Executive Officer, Ingus Kelly, and our Chief Financial Officer, Pete Juhasz. Before we begin today's call, I would like to remind you that some statements made during this conference call, which are not historical facts, may be forward-looking statements. Forward-looking statements involve risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied in such statements. RCAP undertakes no obligation other than that imposed by law to publicly update or revise any forward-looking statements to reflect future events, information, or circumstances that arise after this call. Further information concerning issues that could materially affect performance can be found in RCAP's earnings release dated 30 October 2024. A copy of the earnings release and conference call presentation are available on our website at rcap.com. This call is open to the public and is being webcast simultaneously at rcap.com and will be archived for replay. We will shortly run through our earnings presentation and will allow time at the end for Q&A. As a reminder, I would ask that analysts limit themselves to one question and one follow-up. Given the ongoing court case, we will not be taking any questions regarding our insurance claims on this call. I will now turn the call over to Angus Kelly.

Thank you for joining us for our third quarter 2024 earnings call. I am pleased to report another quarter of strong earnings for AirCap, generating adjusted net income of $463 million dollars and adjusted earnings per share of $2.41. We also continue to generate very strong operating cash flows across the business, reaching a record $5.6 billion for the last 12 months. These results reflect the widespread demand for our assets, the ongoing constraints on OEM deliveries, and our continued focus on execution. As a result, we are pleased to increase our earnings guidance for the year from $10.25 to approximately $10.70. As a reminder, our guidance does not include any gains on sale in the fourth quarter. We've spoken many times about how we expect the supply constraints to persist for many years to come, which we expect will continue to add further upward pressure to aircraft and engine values. This position was further reinforced by the commentary from the various engine and airframer manufacturers over the last fortnight. Despite this backdrop, we continue to improve the quality of our fleet with the delivery of $1.8 billion of new technology aircraft, engines, and helicopters in the last quarter. We also added a further $500 million share repurchase authorization in September, taking total authorizations year-to-date to $1.5 billion. And we announced a dividend of 25 cents per share for Q3, which will be paid in early December. Demand for leasing continues to be reflected in our consistently high levels of activity. In Q3, AirCap executed 226 transactions across aircraft, engines, and helicopters. This comprised of 160 lease agreements, 41 purchases, and 25 sales. Our utilization rate, which measures the percentage of our fleet, which is currently on a revenue-generating lease, was 99%, the highest since the pandemic. Further, Extension rates exceeded 90%, demonstrating continued demand for older aircraft. Both of these measures show the consistent and recurring earnings power of the business and translate into higher cash flows and increased profitability for our shareholders. On the sales side, where the financial benefits are seen more immediately, I am pleased to report another strong quarter of activity, leading to unlevered margins of 27% in the quarter, are approximately two times book equity. The aircraft sold had an average age of 17 years and were predominantly sold to airlines or part-head specialists. It always gives me satisfaction and comfort to see aircraft, especially older variants, sell at large gains on sale. This validates our approach to valuation, depreciation, and portfolio management. Ultimately, this is the best proof of the conservative nature of the carrying value of AirCap's book equity on our balance sheet. It's your 25-year litmus test, and we have done this successfully and consistently for almost two decades. On the purchase side, our investment in new technology equipment continued with the delivery of 27 aircraft, including A220s, A320neo family aircraft, 737 MAXs, Embraer E2s, and a 787. On the engine side, we also took delivery of a further 13 new technology engines, including a mix of LEAPs, Gen Xs, GTFs, and one H175 helicopter. The Boeing strike, which began in mid-September, did not have much of an impact on deliveries, given it occurred so late in the quarter, though we have not taken delivery of any MAX aircraft since then. Given the ongoing strike, it's hard to predict what impact this will have on the rest of the year, but we have so far pushed eight aircraft from 2024 into 2025 and subsequently into 2026. We are also seeing delays at Airbus, And as you'll see from our updated delivery schedule, we have moved 15 A320neo family aircraft out of 2025 and into 2026. So as we have said in the past, this is not just one manufacturer's issue. To wrap up, with global traffic growing at 12% year on year through August and the delivery delays from the aircraft and engine OEM set to continue through the end of this decade, the environment for aircraft leasing remains strong, underpinning the profits and cash flows of our business. This dynamic and the broad-based demand for AirCap's assets supported a record operating cash flow performance and a positive outlook for AirCap's future. With that, I will hand the call over to Pete for a detailed review of our financial performance and favorable outlook for 2024. Thank you.