* Travel rebound pushes Q2 revenue up 36% to $1.67 bln
* Sees supply chain issues hitting planemakers for years
* Predicts lessors share of deliveries to grow to 65%
DUBLIN/PARIS, Aug 11 (Reuters) - The world's largest
aircraft lessor predicted on Thursday that planemakers will be
hampered by supply chain issues for years, further slowing new
jet deliveries and boosting leasing demand already benefiting
from a rebound in air travel.
AerCap Chief Executive Aengus Kelly, whose company
has a portfolio of 3,599 aircraft, engines and helicopters, said
he expected further delays in deliveries, in particular due to
the need for manufacturers to divert scarce engines to their
existing fleet to be used as spares.
He said recently revised production plans by Airbus
appeared "somewhat optimistic" after the planemaker cut its
annual jet delivery forecast and put the brakes on short-term
production increases due to supply pressure.
AerCap said supply chain issues would continue to constrain
aircraft production over the next few years.
"So what do airlines do in the meantime? They turn to the
leasing companies where delivery certainty is higher," Kelly
said on a call with analysts.
Airbus last month delayed phase one of a planned output
increase by six months to early 2024 but voiced confidence in
its ultimate goal of raising A320 output to 75 a month in 2025.
Lessors, who buy new jets both directly from manufacturers
and indirectly by taking over airline commitments in
sale-and-leaseback deals, will likely increase their share of
deliveries to around 65% from just over half currently, Kelly
AerCap reported a 36% increase in second quarter revenue to
$1.67 billion on Thursday, just above the $1.65 billion forecast
by seven analysts polled by Refinitiv, citing a strengthening
rebound in air travel "across all major regions".
It posted a quarterly net profit of $340 million, up from
AerCap's New York-listed shares rose 0.6%.
The Dublin-based firm said that while lease rents were
negatively impacted by the loss of revenue from Russian
aircraft, the recovery in passenger demand led to higher overall
levels of cash collection and greater utilisation of its fleet.
AerCap booked a pretax charge of $2.7 billion in the
previous quarter as it recognised a loss on its more than 100
jets stranded in Russia, the largest exposure of any lessor,
accounting for 5% of its fleet by value.
It submitted a $3.5 billion insurance claim relating to the
confiscated aircraft in March, a month after Russia's invasion
of Ukraine that triggered the Western sanctions forcing lessors
to cancel their contracts with Russian airlines.
Kelly said the level of inquiry and demand for wide body
jets used for long-haul travel showed airlines are as convinced
as AerCap that international travel will rebound as quickly as
short-haul, particularly in China.
"We fully expect that when international travel to China is
permitted to fully reopen, there will be a massive surge in
demand, which will further bolster both wide-body and narrow
body aircraft demand," he said.
(Reporting by Padraic Halpin; editing by David Evans, Jason
Neely and Emelia Sithole-Matarise)