AerCap Delivers First Airbus A321neo to LATAM Airlines, Boosting Sustainability

On Tuesday, AerCap Holdings N.V., a leader in aviation leasing, announced the delivery of the first of eight new Airbus A321neo aircraft to LATAM Airlines Group S.A. The remaining seven planes are set to be delivered throughout 2023 and 2024. With a market capitalization of $13.78 billion and a P/E ratio of 7.62, AerCap continues to play a significant role in the aviation leasing sector.

The inaugural A321neo aircraft departed from the Airbus Delivery Center in Hamburg, Germany, en route to Brazil. Notably, the flight utilized 49% Sustainable Aviation Fuel (SAF), highlighting the commitment of both AerCap and LATAM to environmental sustainability. This initiative aligns with AerCap’s robust gross profit margins and projected net income growth this year.

Peter Anderson, AerCap’s Chief Commercial Officer, expressed his satisfaction in delivering the first A321neo to LATAM Airlines Group, underscoring that this delivery is part of a broader initiative to modernize LATAM’s fleet while enhancing efficiency and sustainability. AerCap also boasts a perfect Piotroski Score of 9, reflecting its strong financial health, and the company is actively engaged in share buybacks.

Ramiro Alfonsín, CFO of LATAM Airlines Group, reiterated that the fleet renewal strategy aligns with their sustainability goals, including their aim to achieve carbon neutrality by 2050. He indicated that LATAM will continue to upgrade its fleet with next-generation aircraft to improve connectivity while being environmentally conscious. Despite some recent challenges, LATAM has experienced significant stock price gains over the last six months, with analysts forecasting profitability for the year.

AerCap is recognized as a global leader in aviation leasing, serving approximately 300 customers worldwide with a comprehensive range of fleet solutions. The company is based in Dublin and has a presence in multiple international locations. Over the past year, AerCap’s stock has yielded a return of 34.32%.

LATAM Airlines Group S.A. is the leading airline group in Latin America, operating in five domestic markets—Brazil, Chile, Colombia, Ecuador, and Peru. The group also provides international operations throughout Latin America and destinations in Europe, Oceania, the United States, and the Caribbean. Its diverse fleet includes Boeing 767, 777, 787, as well as Airbus A321, A320, A320neo, and A319 aircraft. Despite experiencing a decline in stock price over the past year, LATAM remains an influential player in the passenger airlines industry.