AerCap Holdings N.V. Reports Second Quarter 2012 Financial Results

Amsterdam, Netherlands; August 7, 2012 – AerCap Holdings N.V. (the “Company” or “AerCap”) (NYSE: AER) today announced the results of its operations for the second quarter ended June 30, 2012.

Second Quarter 2012 Net Income and Earnings Per Share

Second quarter 2012 reported net income was $29.6 million, compared with $30.8 million for the same period in 2011. Second quarter 2012 reported basic and diluted earnings per share was $0.21, compared with reported basic and diluted earnings per share of $0.21 for the same period in 2011.

Second quarter 2012 adjusted net income was $59.2 million, compared with second quarter 2011 adjusted net income of $72.8 million. Second quarter 2012 adjusted earnings per share was $0.43, compared with $0.49 for the same period in 2011.

Set forth below are the details to reconcile reported net income to adjusted net income, including the specific adjustments.

Both reported and adjusted net income in the second quarter of 2012 decreased from the same period in 2011. The decrease in adjusted net income was mainly the result of increased default and restructuring related expenses of $6.9 million, net of tax, and a lower gain on the sale of aircraft of $4.5 million, net of tax, in the second quarter of 2012 compared with the second quarter of 2011.

Aengus Kelly, CEO of AerCap, commented: “During the second quarter of 2012 AerCap continued to increase shareholder value by generating $59 million of adjusted net income and executing an unsecured debt offering, which represented an industry milestone. In addition, we demonstrated our commitment to enhance shareholder value by repurchasing 5.6 million shares and recently increased our share repurchase program to $200m. This, along with opportunistic aircraft acquisitions such as our transaction with Singapore Airlines, our pro active aircraft sales policy and robust liquidity profile will continue to drive AerCap’s industry leading returns.”

Additional Second Quarter 2012 Financial Highlights

Net interest margin earned on lease assets, or net spread, was $173.1 million in the second quarter of 2012 compared with $177.3 million for the same period in 2011. Net interest margin as a percentage of average lease assets was 8.67% for second quarter 2012 as compared to 8.83% for second quarter 2011. The decrease in net interest margin is driven by the impact from the delivery of new aircraft and costs related to defaults which occurred in previous periods.

Total assets were $9.3 billion at June 30, 2012, a decrease of 3% over total assets of $9.6 billion at June 30, 2011. The net decrease is attributable to the sale of AeroTurbine, which was only partially offset by new aircraft deliveries.

Debt to equity ratio was 2.7 to 1 at June 30, 2012, compared to 2.8 to 1 at June 30, 2011.

Committed purchases of aviation assets delivered or scheduled for delivery in 2012 are $1,097 million, of which $518 million closed in the first six months of 2012.

In the second quarter of 2012, we closed three financing transactions totaling approximately $340 million, including a $300 million senior unsecured notes issuance. The total amount of financing transactions completed in the year to date is $650 million.

In the second quarter of 2012, we purchased 5.6 million shares (including 5.0 million shares purchased from Cerberus Capital Management, L.P.) at a cost of $62.7 million. The average purchase price of the 5.6 million shares was $11.22. The book value per share at June 30, 2012 was $17.20.

AerCap’s CFO, Keith Helming, added: “During the first half of 2012, we completed $650 million of new financing transactions and generated over $300 million of operating cash flow. With a debt/equity ratio at 2.7 times and $750 million of total cash on hand at the end of the second quarter, we are well positioned to respond to investment opportunities that may arise to maximize shareholder value.”

Basic lease rents were $234.9 million for the second quarter of 2012, a decrease of 1% compared with the same period in 2011. Our average lease assets decreased by 1% to $8.0 billion compared with the second quarter of 2011.

Basic rents, maintenance rents and other receipts, or total lease revenue, for the second quarter of 2012 was $247.4 million, compared to $264.5 million for the same period in 2011, a decrease of 6%. This is mainly due to a decrease in maintenance rents and other receipts.

Net gain on sale of aircraft for the second quarter of 2012 was $0.7 million, compared to $6.5 million for the same period in 2011. During the second quarter of 2012 we sold one A330 aircraft, one A320 aircraft and one B757 aircraft.

As shown in the table above, interest expense excluding the impact of the mark-to-market of interest rate caps and non-recurring charges to interest expense from the early repayment of secured loans was $61.8 million in the second quarter of 2012, a 1% increase compared with the second quarter of 2011. Net spread in the second quarter of 2012 decreased 2% compared with the same period in 2011.

Effective Tax Rate

AerCap’s blended effective tax rate during the first six months of 2012 was 8.0%. The blended effective tax rate in 2011 was 6.7%.

As of June 30, 2012, AerCap’s portfolio consisted of 347 aircraft that were either owned, on order, under contract or letter of intent, or managed. Total assets were $9.3 billion at June 30, 2012, a decrease of 3% over total assets of $9.6 billion at June 30, 2011. The net decrease is attributed to the sale of AeroTurbine, which was only partially offset by new aircraft deliveries.