AerCap and AFI KLM E&M Form LEAP Engine Leasing JV, Acquiring 40 New Engines
AER sits 39% above its 52-week low of $105.65.
Summary
AerCap and Air France Industries KLM Engineering & Maintenance have signed a 50/50 joint venture to lease LEAP spare engines, initially acquiring about 40 new CFM LEAP-1A and LEAP-1B engines. Deliveries run through 2032, with the first four engines available by early 2027. This follows AerCap's strong Q1 results and recent $900M debt issuance, adding a growth avenue in the high-demand narrowbody engine aftermarket. The JV combines AerCap's leasing scale with AFI KLM E&M's MRO network, targeting airlines operating LEAP-powered aircraft. The deal is subject to regulatory approvals.
At the time of this announcement, AER was trading at $146.98 on NYSE in the Trade & Services sector, with a market capitalization of approximately $23.2B. The 52-week trading range was $105.65 to $155.99. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: PR Newswire.