AerCap sees engine supply issues continuing

AerCap’s Chief Executive Officer Aengus Kelly said the supply of engine parts could not catch up with demand by the end of the decade.

According to Kelly, while problems related to the manufacturing of airframes will be more easily resolved, the finite supply of parts to build and repair engines will make it more difficult to turn around.

“The manufacturers of those parts way back up the supply chain that do the castings are not going to increase that significantly anytime this decade as far as I understand. So I think we will see the engine issues persist through the decade,” the company’s CEO was quoted as saying by Reuters.

Stock Performance

The shares of AerCap Holdings NV (AER) closed 0.92% ($0.72) lower at $77.85 in New York on Friday, as they snapped a three-day streak of gains.

The aircraft lessor’s total market cap now stands at $15.746 billion.

The shares of AerCap Holdings NV (AER) have risen 4.75% so far this year, following another 27.43% gain in 2023.

Analyst stock price forecast and recommendation

According to TipRanks, all 3 surveyed investment analysts offering 12-month price targets for AerCap Holdings NV’s stock had rated the latter as “Buy”. The median price target on the stock stands at $93.00, which translates into a 19.46% upside compared to the closing price on Friday.

The high point of the analyst forecast range stands at $103.00.