AerCap Holdings N.V. (AER): Business Model Canvas [Dec-2025 Updated]

You're looking at the undisputed giant of aviation leasing, AerCap Holdings N.V. (AER), and wondering how they keep posting those record results heading into 2026. Honestly, it's a masterclass in asset management, blending massive scale-like owning 1,700 aircraft-with sharp financial moves, such as booking $332 million in net gains from asset sales in Q3 2025. They aren't just renting planes; they are orchestrating a global fleet strategy supported by billions in financing and deep ties to manufacturers like Boeing and Airbus. This model turns high fixed costs, like that $477 million Q3 interest expense, into predictable, recurring revenue streams, evidenced by $1,690 million in core lease rents that same quarter. You need to see the nine building blocks that make this behemoth tick.

AerCap Holdings N.V. (AER) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep AerCap Holdings N.V.'s massive asset base moving and funded. These partnerships are critical for managing the order book, securing liquidity, and ensuring the high utilization of the fleet.

The relationships with major Original Equipment Manufacturers (OEMs) are foundational, securing future deliveries and managing the current fleet's most in-demand types. As of March 31, 2025, AerCap Holdings N.V. had firm commitments to purchase 283 new aircraft scheduled for delivery through 2030. Furthermore, the company also had commitments to purchase 52 engines and 21 helicopters through 2027.

AerCap Holdings N.V. is the World's Largest owner of commercial aircraft, the World's Largest Airbus A320neo Family Lessor, and the World's Largest 787 lessor as of September 30, 2025. The company's portfolio is heavily weighted toward new technology assets, which comprised 76% of the total fleet as of September 30, 2025.

Securing the capital to acquire these assets is just as important. AerCap Holdings N.V. maintains strong access to capital markets, signing financing transactions for approximately $2.9 billion in the second quarter of 2025 and approximately $1.5 billion in the first quarter of 2025. As of June 30, 2025, the principal amount of outstanding indebtedness totaled approximately $46.113 billion.

The company has been actively managing its engine portfolio through strategic joint ventures with manufacturers and MRO providers. AerCap Holdings N.V. became the new joint-venture partner of Safran in Shannon Engine Support (SES), the largest lessor of CFM International's CFM56 and Leap engine families, following the GECAS acquisition. This SES is a 50/50 joint-venture company between Safran and AerCap. In May 2024, AerCap unveiled a deal with Safran/SES for the acquisition of 150 new CFM LEAP spare engines, valued at approximately US$3 billion at list prices. CFM engines account for the largest share of MRO demand at 35% during the 2025-2034 period.

The following table summarizes key partners and associated financial or fleet metrics:

The strategic engine leasing partnership with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) was announced in June 2025, focusing on a new joint venture.

• Jointly own and manage a fleet of CFMI LEAP-1A and LEAP-1B engines.
• The venture supports AFI KLM E&M LEAP Premier MRO customers worldwide.

For the helicopter segment, AerCap's Milestone Aviation Group formalized a framework agreement with Leonardo S.p.A. in July 2025.

• The agreement covers Milestone's Leonardo fleet of over 100 aircraft.
• Streamlined Power-by-the-Hour (PBH) transition solution developed for customers.
• Fleet includes models like the AW169, AW139, and AW189.

AerCap Holdings N.V. also secured a general terms agreement with Caerdav for maintenance services, focusing on the Boeing 737 and Airbus A320 aircraft. This MRO support covers end-of-lease, transition checks, and redelivery maintenance.

AerCap Holdings N.V. (AER) - Canvas Business Model: Key Activities

You're looking at the core engine of AerCap Holdings N.V. (AER), the activities that actually move the metal and the money in the leasing world. This is where the scale of the operation becomes clear, blending physical asset management with complex financial engineering.

The first key activity is acquiring and managing a massive global fleet of assets. This isn't just about owning planes; it's about managing the entire lifecycle, from new deliveries to eventual divestment. As of September 30, 2025, the scale of the managed portfolio was substantial.

This fleet is supported by an order book of 335 of the most fuel-efficient and technologically advanced aircraft in the world, ensuring future portfolio health. Honestly, managing that physical footprint across the globe is a massive undertaking.

Next up is securing new financing to fuel fleet expansion and operations. AerCap Holdings N.V. actively taps capital markets to keep its funding sources diverse and cost-effective. You saw a major instance of this activity in the second quarter of 2025 when the company signed financing transactions for approximately $2.9 billion.

Marketing and negotiating long-term operating lease agreements is the revenue driver. This involves placing those assets with airlines and cargo operators worldwide. The demand side was clearly strong through the third quarter of 2025, as evidenced by the leasing activity.

• Lease agreements signed in Q2 2025: 71 total (including 8 widebody aircraft, 32 narrowbody aircraft, 13 engines, and 18 helicopters).
• Lease agreements signed in Q3 2025: 66 total (covering 14 widebody and 25 narrowbody aircraft, 15 engines, and 12 helicopters).
• Lease extension rate in Q2 2025 was 97%.

A critical activity for realizing gains and optimizing the portfolio is strategically selling older assets. AerCap Holdings N.V. executed significant divestitures, particularly in the third quarter of 2025. They sold $1.5 billion of assets during that quarter. That activity generated a record gain-on-sale of $332 million in Q3 2025 alone. To give you context on the pricing, the assets sold in Q3 2025 averaged 2.0x book value on an equity basis.

Finally, the day-to-day management includes handling maintenance reserves and ensuring global regulatory compliance. This is the less glamorous but essential work that protects asset value. For instance, maintenance rents and other receipts totaled $204 million for the third quarter of 2025. Also part of this activity is managing the fallout from geopolitical events; during Q3 2025, AerCap Holdings N.V. recovered another $475 million related to assets lost in the Ukraine Conflict, bringing total recoveries since 2023 to $2.9 billion. Finance: draft 13-week cash view by Friday.

AerCap Holdings N.V. (AER) - Canvas Business Model: Key Resources

You're looking at the core assets that make AerCap Holdings N.V. a dominant force in aircraft leasing right now, late in 2025. These aren't just line items; they are the physical and financial foundation of the business.

The physical fleet is massive and modernizing. AerCap Holdings N.V. owns a fleet of 1,700 aircraft, >1,200 engines, and >300 helicopters. That scale gives them unparalleled purchasing power and asset diversity. Also, the future capacity is locked in with an order book of 335 new, fuel-efficient aircraft, securing fleet renewal for years to come.

The financial strength is just as critical as the metal they own. You need to look at leverage and liquidity to gauge stability. Here's the quick math on their balance sheet health as of the end of Q3 2025:

That adjusted debt/equity ratio of 2.1 to 1 as of September 30, 2025, shows a manageable leverage profile for this industry. Plus, the substantial cash insurance recoveries, totaling $2.9 billion since 2023, provide a significant liquidity buffer, with $475 million recognized in Q3 2025 alone related to the Ukraine Conflict settlements.

Beyond the balance sheet, the intangible assets-people and presence-are key differentiators. AerCap Holdings N.V. deploys deep industry expertise across a truly global footprint. They serve approximately 300 customers worldwide.

Consider the network that supports these operations:

• Global office network locations include Shannon, Miami, Singapore, Amsterdam, Shanghai, and Dubai.
• The order book includes a recent agreement with Airbus for 52 A320neo Family aircraft and 45 options completed in October 2025.
• The owned fleet utilization rate was 99% based on net book value weighted days as of June 30, 2025.
• The company reported an unlevered gain-on-sale margin of 28% for assets sold in Q3 2025.

This combination of hard assets, forward-looking commitments, proven financial discipline, and global reach defines the Key Resources for AerCap Holdings N.V. right now. Finance: draft 13-week cash view by Friday.

AerCap Holdings N.V. (AER) - Canvas Business Model: Value Propositions

Immediate access to a diverse fleet without large capital outlay

Modern, fuel-efficient aircraft like the A320neo and 737 MAX

• Order book of 335 of the most fuel-efficient and technologically advanced aircraft in the world (as of Q3 2025).
• Goal to achieve approximately 85% new technology assets across aircraft, engines, and helicopters by 2030.
• Purchases in Q3 2025 included 8 Airbus A320neo Family aircraft and 9 Boeing 737 MAX aircraft for the owned portfolio.
• Average age of new technology aircraft in the owned fleet was 4.9 years (as of March 31, 2025).

Flexible, comprehensive fleet solutions across aircraft, engines, and helicopters

• Serves approximately 300 customers around the world.
• Signed 66 lease agreements in Q3 2025, including 14 widebody aircraft, 25 narrowbody aircraft, 15 engines, and 12 helicopters.
• Entered into a framework agreement with Leonardo S.p.A. to support the transfer of maintenance agreements, making helicopter transitions easier and more cost-efficient.

Risk mitigation for airlines regarding residual aircraft value

High lease extension rate of 97%, showing customer trust

• Lease extension rate of 97% during the second quarter of 2025.
• The rate of extensions of expiring aircraft leases was high at over 70% in 2023 and first-quarter 2024.

AerCap Holdings N.V. (AER) - Canvas Business Model: Customer Relationships

You're managing the world's largest aviation leasing portfolio, so your customer relationships aren't just about signing a contract; they're about deep, long-term partnerships that keep high-value assets flying profitably.

AerCap Holdings N.V. maintains direct, relationship-driven engagement with approximately 300 customers around the world. This focus on a defined, global customer base allows the team to offer dedicated account management, which is key for securing and servicing long-term lease agreements. Honestly, this direct approach helps them stay ahead of the curve on what airlines actually need next.

The success of this strategy is clearly visible in the high customer retention figures. For instance, global demand for aviation assets was so high that AerCap Holdings N.V. reported a 97% lease extension rate during the second quarter of 2025. To be fair, the wide-body market showed even stronger commitment, with a 100% wide-body lease extension rate reported in the third quarter of 2025, showing how much airlines value keeping their current equipment. If onboarding takes 14+ days, churn risk rises-but extensions avoid that entirely.

AerCap Holdings N.V. actively develops custom-tailored fleet solutions to meet specific operational needs. This isn't just about handing over an airplane; it's about comprehensive support. A concrete example of this tailoring is the new strategic partnership for engine leasing announced with Air France-KLM, designed to expand support for LEAP engine operators. Also, a framework agreement was entered into with Leonardo S.p.A. specifically to help make helicopter transitions easier and more cost-efficient by supporting the transfer of maintenance agreements between customers.

Here's a quick look at the scale of the relationships and the portfolio they support as of late 2025:

The company's ability to secure these high extension rates and forge new, specialized deals, like the one with FlySafair for 737 MAX aircraft, stems directly from this relationship-first model. They use their extensive portfolio, which stood at 3,536 owned, managed, or committed aircraft, engines, and helicopters as of September 30, 2025, to offer the right asset at the right time.

You should review the Q4 customer pipeline against the lease expiration schedule for 2026, as AerCap Holdings N.V. has twice the number of leases expiring in 2025 versus 2024, and an even larger amount expiring in 2026, which will test the strength of these relationships. Finance: draft 13-week cash view by Friday.

AerCap Holdings N.V. (AER) - Canvas Business Model: Channels

You're looking at how AerCap Holdings N.V. gets its product-aircraft, engines, and helicopters-into the hands of customers and how it manages relationships with financial backers. It's a high-touch, global operation, supported by clear digital interfaces for investors.

Direct sales and leasing teams operating from global offices.

AerCap Holdings N.V. serves approximately 300 customers worldwide through its direct teams. The company maintains a significant physical presence across key aviation hubs to facilitate these relationships. Its headquarters is in Dublin, Ireland, and its global offices include locations in Shannon, Miami, Singapore, Memphis, Amsterdam, Shanghai, London, Dubai, Toulouse, Abu Dhabi, and Cincinnati. These teams handle the primary channel of operating leases for new and used commercial passenger and cargo aircraft, engines, and helicopters.

Asset sales to other lessors, investors, and part-out companies.

Asset rotation through sales is a critical channel for capital recycling and realizing gains. The pace of these transactions was high through the first nine months of 2025. For instance, in the third quarter of 2025 alone, AerCap Holdings N.V. completed 45 sale transactions, which included 40 aircraft, 4 engines, and 1 helicopter. These sales generated a record quarterly profit from sales of $332 million on 32 assets sold for $1.5 billion in that quarter. This contrasts with the first quarter of 2025, where 42 sale transactions moved 29 aircraft, 11 engines, and 2 helicopters.

Here's a quick look at the asset sales activity across the first three quarters of 2025:

Industry conferences and trade shows for new business generation.

While specific attendance figures aren't public, the high volume of leasing activity, including 112 lease agreements signed in Q1 2025 and a 97% lease extension rate in Q2 2025, underscores the importance of industry engagement for generating new business and maintaining customer relationships. These events are where AerCap Holdings N.V. engages with its global customer base to discuss fleet solutions.

Online investor relations portal for financial stakeholders.

The communication channel for financial stakeholders is robust, centered around the Investor Relations section of the AerCap Holdings N.V. website. This portal provides the data points that drive capital decisions. For example, in Q2 2025, the company signed financing transactions for approximately $2.9 billion, and in Q1 2025, it secured about $1.5 billion in new financing. The portal details the capital returned to shareholders, which is a key channel for demonstrating financial stewardship:

• Q1 2025 share repurchase: 5.7 million shares for approximately $558 million at an average price of $97.93 per share.
• Q3 2025 share repurchase: Approximately 8.2 million shares for a total of approximately $981 million.
• Consistent quarterly cash dividend declared at $0.27 per ordinary share across Q1, Q2, and Q3 of 2025.

Finance: draft 13-week cash view by Friday.

AerCap Holdings N.V. (AER) - Canvas Business Model: Customer Segments

AerCap Holdings N.V. serves approximately ~300 customers around the world as of September 30, 2025.

Global passenger airlines (flag carriers to low-cost carriers)

This segment represents the core of AerCap Holdings N.V.'s leasing business, covering a wide spectrum of airline types globally.

• Lease agreements signed in Q1 2025 included 4 widebody aircraft and 47 narrowbody aircraft.
• The owned aircraft fleet stood at 1,681 as of September 30, 2025.
• The weighted average utilization rate for owned aircraft was 99% during the year ended December 31, 2024.

Air cargo operators, including launch customers for converted freighters

AerCap Cargo is a significant player in the air cargo market, providing solutions for dedicated freight operators.

• AerCap Cargo had a global fleet of over 120 aircraft owned, serviced, or committed for conversion as of December 31, 2024.
• AerCap Cargo serves over 20 customers globally, including e-commerce, express delivery, and general cargo operators.
• In the third quarter of 2025, AerCap Holdings N.V. delivered the first four Boeing 777-300ERSF Passenger-to-Freighter converted aircraft to the launch operator, Kalitta Air.

Engine and helicopter operators requiring short-term asset support

This category includes specialized support for engine lessors and helicopter operators, often requiring flexible, shorter-term solutions.

• Lease agreements signed in Q1 2025 included 42 engines and 19 helicopters.
• As of September 30, 2025, AerCap Holdings N.V. had >1,200 engines and >300 helicopters in its portfolio.
• The Milestone Aviation Group, the helicopter leasing business, had 322 helicopters owned or on order as of December 31, 2024.
• The spare engine portfolio includes 1,200 engines, with 90% being the latest technology.

Financial investors and other leasing companies buying assets

AerCap Holdings N.V. engages in trading and portfolio management activities, selling assets to other financial entities and lessors.

Here's the quick math on asset trading activity for Q3 2025:

The unlevered gain-on-sale margin for assets sold in the third quarter of 2025 was 28%, or 2.0x book value on an equity basis.

AerCap Holdings N.V. also completes sale and leaseback transactions with airlines, which involves selling aircraft to AerCap Holdings N.V. and immediately leasing them back, effectively serving as a financing partner to airlines.

The company also provides asset services to other aircraft owners, financiers, and investors, including Lease Administration, Technical Asset Management, and Re-marketing of Aircraft and Engines.

AerCap Holdings N.V. (AER) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive AerCap Holdings N.V.'s operations, which are heavily weighted toward financing the massive asset base. The cost structure is dominated by the cost of capital required to own one of the world's largest aircraft portfolios.

The most significant recurring cost is the interest expense on debt, which was reported at $477 million for the third quarter of 2025, excluding mark-to-market on interest rate derivatives. This figure underscores the leverage inherent in the aircraft leasing business model, where debt is the primary funding source for asset acquisition.

Another major component is the leasing expenses, which totaled $93 million in Q3 2025. This was a significant decrease from $275 million in Q3 2024, primarily because of a $140 million credit loss provision taken in the prior year's third quarter. Still, the Q3 2025 leasing expenses were negatively impacted by $22 million related to the amortization of maintenance rights.

The overhead associated with running a global leasing operation is captured in the Selling, General, and Administrative (SG&A) expenses. For the third quarter of 2025, these expenses stood at $129 million, up from $121 million in the same period last year.

For maintenance and transition costs, the direct figures are often embedded within other line items or are forward-looking estimates. We see clear impacts from maintenance accounting, such as maintenance rents and other receipts being $204 million in Q3 2025, which was negatively impacted by $14 million due to maintenance rights assets being amortized to revenue. Furthermore, management noted expectations for higher leasing expenses in Q4 2025 related to the Spirit Airlines restructuring, involving taking back 27 aircraft and expecting associated engine shop visits and downtime costs.

Here's a quick look at the key reported operating costs for AerCap Holdings N.V. for the three months ended September 30, 2025:

The depreciation expense on the owned flight equipment fleet is a non-cash charge that reflects the asset value consumption over time. While the overall Depreciation and Amortization line item is a major cost driver, the specific dollar amount for Q3 2025 is not explicitly detailed as a standalone figure in the provided summaries, though it is referenced in percentage change context.

You should keep an eye on how these costs shift, especially with the average cost of debt holding steady at 4.0% for Q3 2025.

• Basic lease rents for Q3 2025 were $1,690 million.
• Maintenance rents and other receipts were $204 million in Q3 2025.
• Lease premium amortization negatively impacted basic lease rents by $26 million in Q3 2025.

AerCap Holdings N.V. (AER) - Canvas Business Model: Revenue Streams

You're looking at the actual money AerCap Holdings N.V. brought in during the third quarter of 2025, which was a very strong period for them. Honestly, the revenue streams are quite diverse, moving beyond just the day-to-day leasing income.

The primary engine, the basic lease rents, the core stream, totaled $1,690 million in Q3 2025. That number is up from $1,605 million in the same period last year, showing solid underlying business growth.

The sales side was particularly hot. AerCap Holdings N.V. realized a record $332 million from the net gain on sale of assets in Q3 2025. This gain came from selling 32 owned assets for a total of $1.5 billion during the quarter.

You also have the operational receipts. Maintenance rents and other receipts, which were $204 million in Q3 2025, show the ongoing cash flow from managing the fleet's upkeep status.

A significant, non-recurring but material, boost came from insurance recovery proceeds. They recognized $475 million related to assets lost in the Ukraine Conflict during Q3 2025, bringing total recoveries since 2023 to $2.9 billion.

Regarding investment income from finance leases, historically, AerCap Holdings N.V. has often included the net interest income from finance leases within the basic lease rents line item itself. For the six months ended June 30, 2025, for example, this interest income was about $49 million of the basic lease rents.

To give you a clearer picture of the top-line performance, here's how the major components stacked up for the quarter. The total revenue for Q3 2025 hit $2,308.57 million.

You can see the strength wasn't just in the rent collection; the asset management and sales execution were key drivers of the quarter's profitability. This contributed to the GAAP net income of $1,216 million for the period.

The diversification of these cash inflows is what gives AerCap Holdings N.V. the optionality for capital deployment. Consider the sources of cash flow:

• Cash flow from operating activities reached $1.5 billion for the third quarter.
• The company returned $1 billion to shareholders via share repurchases in Q3 2025.
• Book value per share stood at $109.22 as of September 30, 2025.
• The adjusted return on equity for the quarter was 19%.

The management team is clearly confident, raising the full-year 2025 adjusted EPS guidance to approximately $13.70, excluding any further gains on sale. Finance: draft 13-week cash view by Friday.