AerCap (AER) 30 Oct 242024 Q3 Earnings call transcript

Good day, everyone, and welcome to AerCap's Q3 2024 Financial Results. Today's conference is being recorded, and a transcript will be available following the call on the company's website. At this time, I would like to turn the conference over to Joseph McGinley, Head of Investor Relations. Please go ahead, sir.

Thank you, operator, and hello, everyone. Welcome to our third quarter 2024 conference call. our Officer, Officer, Pete is our Kelly; today Financial Chief Juhas. me Chief Aengus Executive and With

Before we conference begin statements. remind not you today's facts call, I some historical made would statements during be this may call, are that which forward-looking like to

statements such that cause statements. or and actual those expressed uncertainties materially to differ from risks or involve results Forward-looking may events implied in

events, other publicly statements no obligation than or future update to revise undertakes by to that arise AerCap law that forward-looking or any reflect call. after information circumstances imposed this

at can aercap.com information found XXth to open that Further and replay. copy and on at issues could and aercap.com. concerning public XXXX. the for website presentation October AerCap's materially of being will dated This affect release call call webcast performance earnings archived simultaneously release available conference be is earnings the be is A in are of our

earnings for time through allow presentation run we'll shortly will Q&A. our We and end the at

reminder, I As follow-up. limit one one would to analysts a and question ask that themselves

court claims case, insurance taking questions be any we not will our ongoing this regarding call. on the Given

I call turn to Aengus will now over Kelly. the

for for call. am of XXXX earnings adjusted to $X.XX. quarter Thank joining of I net quarter AerCap our strong $XXX report earnings another generating for and million you pleased earnings adjusted us of third income per share

execution. months. the our XX operating continued constraints across for on business, the ongoing OEM last record results widespread flows billion very cash and also on continue to for strong our the generate We reaching a reflect focus assets, $X.X deliveries demand These the

$XX.XX. from our earnings $XX.XX to result, a to for guidance increase As the are pleased year approximately we

fourth sale not gains on quarter. guidance include As a in our does reminder, any the

and many which expect aircraft the times how upward We values. come, continue for persist constraints supply many have pressure will to to we years engine further to expect add to we spoken about

fortnight. the airframer engines Despite continue to engine of billion by our technology position improve commentary This $X.X this various of over delivery the and the was from we the manufacturers new the last the quality last of and further reinforced in quarter. with backdrop, helicopters fleet aircraft,

added we $X.X dividend also per which a a total $XXX of share And share to in billion. authorizations taking will repurchase authorization year-to-date announced for early We $X.XX in paid further be December. million QX, September,

activity. Demand XX XXX to XXX of for across in leasing and continues AerCap reflected engines consistently In purchases XX executed of levels sales. our agreements, high aircraft, QX, This be and helicopters. transactions comprised lease

and is flows on Our cash earnings these was of measures power our shareholders. translate profitability exceeded the currently utilization rate, which of older for lease the of consistent higher and and Further, show pandemic. measures a XX%, continued the revenue-generating the highest into XX%, Both fleet, which since business aircraft. for rates our percentage demand the demonstrating recurring extension increased

airlines to sale. On side, in aircraft leading book the depreciation or report to benefits another specialists. seen XX% approach the our validates see quarter Xx strong me activity, older of average This and where at I to age sold satisfaction part-out valuation, comfort sell and are portfolio sold on pleased especially equity. of an gains unlevered years always sales margins financial to approximately had am XX variants, predominantly and large to It management. The of were more or gives quarter aircraft, the immediately,

this have value the for equity the test, your conservative It's nature AerCap's best almost Ultimately, X successfully sheet. carrying our we of on done of XX-year and this decades. consistently and proof is of the litmus book balance

delivery XXX XX AXXXs, of EXs the AXXXneo continued On investment technology new aircraft, including purchase family XXX. and in equipment side, Embraer the MAXs, our a aircraft, with

and MAX including occurred any aircraft strike, an the delivery HXXX a took given side, in though since engines, mid-September it GEnxs, GTFs on XX new also late impact quarter, engine of technology helicopter. The delivery a much which taken did have have then. we not not of so Boeing deliveries in of further the of began LEAPs, On mix we

it's have the on will aircraft to XXXX Given from strike, rest predict XXXX. we into what X the But so impact hard year. XXXX pushed subsequently ongoing and this of far into have the

We XXXX from XX out are delivery you'll and Airbus, have and see into aircraft updated we moved also XXXX. seeing of family as delays at AXXXneo our schedule,

of is engine this To continue and decade, the at flows outlook for broad-based cash remains strong, for and So AerCap's as our of the growing performance up, and we from for the wrap I environment to detailed XXXX. the issue. assets global the through delivery year-on-year and cash the record said end delays manufacturer's business. outlook a XX% in review through traffic and will aircraft This OEM a favorable have supported dynamic with performance to Pete for positive not and set demand this AerCap's one for over that, the hand underpinning the Thank financial our aircraft operating flow past, profits just you. future. With call August a of leasing

Thanks, Gus. Good morning, everyone.

$X.XX for income per million, third or and basic of share. maintenance quarter the $XXX of was revenue share. million The which was of That accounting $XX reduced million rents, impact maintenance leasing amortization increased amortization included the amortization $XX rights quarter purchase premium $X.XX million, rights for expenses. net maintenance which GAAP $XXX a which $XX lease reduced lease adjustments million, or of Our

a the had of We recoveries share. $XX to purchase conflict. was also the The million $X or related adjustments accounting effect tax of Ukraine million $X.XX

net were lease into rents billion, that the amortization, briefly $XXX go lease So $X.XXX or that I'll was third which of in for reduces share. million lease lease adjusted per through drivers our from the main increase our quarter. affected Basic $XX the basic results taking of $X.XX million quarter. third billion reflected rents all the $X.XXX an rents. Basic income second premium quarter account, for

to lease for $XXX the the this sold amortization. sale words, amortized which have the the margins sales total on were of on million. are were third $XXX as quarter. of Net maintenance million XX% million reduction quarter in $XXX the million rights over amortized assets That one million. been remaining would of was highest during of resulted maintenance $XX of the sale gain rents. we've $XXX unlevered quarter of term for our was higher quarter, revenue an We third or for assets premium to for XX without had. revenues margin assets gain lease the owned the revenue ever In lease during maintenance quarter. other reminder, a reflects $XX assets revenue Maintenance of million third As basic that a That

quarter, income balances income $XXX losses As million, for higher was consisted due had rates. interest and interest Other of to our XX, noncash aircraft included assets worth has on million derivatives. been certain we held XX which $XXX $XX engines. September and income of onetime of cash interest for we're as higher XX Interest the Interest million sale, was items. $XX primarily which higher interest on seeing income mark-to-market rate this year expense of million including

was which Income expenses well effective million, amortization increase of $XXX our $XX loss million quarter tax million This provision. for expense a as as represented third includes Leasing the rate quarter. tax an $XX to the million $XXX expenses of maintenance credit rights were for XX.X%.

position. liquidity maintain to strong continue We a

$XX billion. uses compares That September and resulting were approximately next to total liquidity $XX around around in $XX sources XX-month coverage ratio billion. of excess As XX, our billion, of X.Xx of cash coverage uses of a source of

X.X:X, quarter. the Our leverage quarter same as the last was ratio at basically of the end

billion $X.X approximately cash was flow quarter, by for cash operating driven strong continued Our the third collections.

XX% the and was Our assets end our cost at was last secured debt same X%. total as of of September, ratio to debt average quarter,

million the back During total price of for $XXX we an third $XX.XX a average at of quarter, X.X bought shares million.

our of quarterly paid a $X.XX second also share. We dividend

of $XX.XX a value XX book September of XX% per months, our of time. over last Our share dividends increase share notwithstanding payments that was XX, an in as $X.XX during the

year, year On guidance last of EPS for for guidance total on still around we year. our gains full third on the full around quarter. $XX.XX $X for overall call, $XX.XX, half expecting on of gains the $X, to XXXX now including the any excluding fourth our raising for excluding around of for had guidance $X.XX year our plus full EPS earnings in we're sale, to another year for of so of not full during sale the gains the sale We're We $X.XX first quarter, gains gains sale. raised the adjusted on

AerCap the to very strongly quarter. Overall, perform during third continued

you We're aircraft on towards sale. sales. rate in see can aircraft which environment environment engine in strong We utilization generate sale and in flexibility, It's of also continuing as sales for held high of and more well this our assets see from the cash million as a have to of profitability in the attractive flows quarter volume very turn leasing, was currently for continue for a reflected which gain we margin we're $XXX strong opportunities. and strong the result deploying capital greater financial and that to XX%.

We shareholders. capital also continue return to to

share of close X $X.X worth bought months the third back for quarter, billion. to we million bringing stock, the $XXX repurchases During of total to this first year

our $XXX And can program. open future. repurchase That the And for our for and we million the a value announced Q&A. share with we confidence now of outlook recently AerCap that, reflects of up operator, new call course, the in

Jamie That We'll Instructions] JPMorgan. caller. will [Operator from Baker take your from come first

hear me? This is Jamie. James you on Can for

can, we ] course, [ James. of Yes,

Okay. and global with supply Great. macro interest I relationship just and start shortage. between off the picture the maybe a the ongoing easing on question to want X-part rates

becomes of a here? of entering capital The undisciplined Or lease fear think kind first cheaper really there more rates part, it is with as strong you the remain concern capital to to do having any space? raise, not is

pushback question, are from just are to guess say to been airlines then has that are I airlines here been that approaching lease there lease And some relative hearing untenable second too of margins levels? that rates there any rates has high. we're that kind the starting the

question first how regarding in is interest that in sector. the the the Well, rates affecting movement and

capital asset in asset highly this stable. is mean, sector people and through being COVID one It's dollar stable particular, as asset. it a a value has raised, years. itself the the over hard last that's to very realized, the of sector I that, proven As various that The that to fairly a see XX-odd relates be very attractive people something new the investable. That's issues before and

you the high And So whether and durable years. the And that it's understand value fairly assets of those course, of smart are steady they a people that, sales. they assets to see and industry. will people, return generate. low, in sell is the the understanding from seen of The of bigger we understand asset become steady investors. solid in the has course increase and There's much that over matured we've XX or and a as the really industry were XX, rates been last demand interest

So is marginal in the course, of interest a be rates concerned will in about I those it's the to wouldn't low buyer no speaking, to assets, interest extra which how of movements Generally bring impacting given seller guys. harm that we're sector. rates

airlines the fraction some increase lease That's own be As such it rates, I rates and what talk They're should tiny unions to a candidly. and that's relates an in One mean, Lease P&L. contract are their at. then is airline's meaningless. looking they of a fraction pilot of the an airlines of completely rubbish, utterly book.

impacts many, more and with has anything That lease than rates. many do to multiples many,

P&L the at look Just airline. an of

to have confidence. to airline an that, say question you their For

this environment, XX% there into for given backdrop that sales that's second comment on any I gain macro I know ahead, reason quarter. and my you but XXXX? far guess helpful. is understand, question, Completely sale can't the sustainable the on too isn't just

question, us relationship environment? can just between rates guess you remind going broader and if with the kind of I is to lower rate And XXXX the what sales interest a environment a

that Sure. selling wrote if stream and you rates should rate prosper. I in fixed and mean, environment, cash lower a a flows business higher are interest look, obviously, you're of you

XX sales have, hedged years So you by always interest which made taking to a risk. the what doing should stable far book. so not that a we of on our rate and is get profitability But side, price. realize run higher for has we have course, you

of associated sell the business when you just therefore, charge asset, the that's breakage higher have that key you a -- behind to in investor with funding us. There and that a the really in, always interest So to will rates for any performance be cost not of business been. the year high-yielding will out year have provided driver whole company the to be debt broken in which or are hedged, is movements that the we've seen demonstrated business the

the it Look, particularly the interest we that's to is assets industry well. really relates So value, differentiates it over crucially, think on rates you asset about the as preserve how as in-house time asset. visits, But value how it value expertise and strong. visits. shop maintain really where margins. buy And the We the what ages, of your landing the that's overhaul down to manage is visit, ability to APU comes of to

controllable in biggest company day not the It's not single cost fund it. or interest. They're buy asset you the fixed Our depreciation. is the

maintenance that for engine Have it's the paid or been you're the to spend? you're spend to going where overbuilding basis, makes it. and level that never built have efficient your where day-to-day you the in a asset the On not back maximizing you airframe a sense value and then get

the things at real value, it. the world are they So drive best the we're in that and

should moment, if really gains, we see continues, so sell just I And gain next we never on think look sale. -- where for year, robust the into at but we'll it I are as we

to We're generation, that's for And our for the never are optimize the has gain how not MO. portfolio for selected always term. long been assets which looking sale,

I'd add on James, just gain on one sales. thing the

Another driver in seeing got an assets hard we're we've here inflationary is environment. that

go, seeing in in those is are of inflation much across I And we of those of assets. of the those maintenance margins. interest condition board And the values and where residual that pretty assets so irrespective think it driving terms rates the

We'll next Cacanando Bank. hear Hillary from Deutsche from

give if $XXX detail. credit the Regarding more I million a you was little loss, wondering could us

I related some just restructuring had And make forward? Specifically, other accrual with see sure impairments I additional importantly, guess, wouldn't this this any going or do to I was more to if we the wondering want accruals. existing to perhaps that Azul

Hillary. Sure,

That we correct. are You have the our is taken a have. exposure -- provision against we Azul

which that, had was of that and and to which background carrier. complementary overlaps one rare the diversified exposure of base. was to highly the GECAS is unusually AerCap exposure, some generally there's It both significant Now customer a very same significant

did this during through was we one But not restructuring where go exposure. both Azul a had COVID.

COVID we've So and we has it. like proactive to want been track taken we a sheet. else Pete, it the the as our want is to legacy this There record, on is on our balance one against a anything significant the Maybe, decided And sheet. and only do the receivable on you isn't be comment have and balance provision provision?

Sure.

to reflects fourth with we've restructuring. quarter this we said, what outcome made that's as to of the is Gus is that We And to think likely And risks be these consistent we to it So take in fully -- quarter. thought provided Hillary, for think addressing though upfront occur. and things we that that this it it. even third event, we a be be expect sense this want provision approach how really, generally I the always

wouldn't there So I going I expect think covered forward, anything fully and we're else.

the noted you number $X.X the billion, for XX any of last We've hit industry-leading as quarter, cash saw the a that, raised of And in record there number. our metric. despite outlook. in importantly, course, you cash, And operating we've months

great. That's

months for you go that with in I there -- like the considered further That's -- from lessors the if so that little constraints Airbus. then be bit the at what for a continues yes, to guys? demand your know that's fourth And also would say that like for for you and really supply and quarter. strike, no and for good great. on at point, -- the could Boeing be assets. Boeing and delays that, point is that spoke could But you impact about So some harmful could obviously, And months,

help see to months. There's won't on repair from place and Boeing lack it's affect suspect a mainly us lot of not strike the of unforeseen immune and will over unintended that deliveries. that a aircraft months would come as of because aftermarket just you'll Hillary, to well. affect has you'll you strike It very the that, fleet aircraft. it to saying the transition parts, well. I will consequences in Boeing's time. It's months need things the Look, a things about There's as go Boeing just for straightforward none in-service important other There's can't want because be need

so we certainly resolution for a strike. speedy hope would And of the

Okay.

any guidance include does quarter assumptions not from fourth your Boeing? delivery So

We've X reduced but got And quarter, -- we delays. about and fourth number, given in of pushed dozen just Airbus, the aircraft we to we deliveries XXXX Hillary. some have out that also ongoing out Boeing both XXXX, the

Citi. [Operator from Instructions] hear Stephen We'll Trent from next

mentioned Chinese exposure before the call, down going to think it your on to the remember you to global was And acceptable of I exposure. last get market? takes ask, how I do level you an long optimizing you

Sure, peaked years the was. percent XX.X%, portfolio Steve. Today, And it I to down. of going XX-odd that's trend and to X to believe said, ago, down we as continue we at we're

from fairly reduction keep XX-odd to So start anyway. And us and going ago, now get pretty percent the to said to years much that's it expect big down that's will year, the down XX%, where a a few we up, to and we'd XX.X%, of there at around down, end Stephen. I continue

unreasonable just where appreciate X even that, XX really seen And as the quick over share think stand Aircraft gains to And you aircraft OEMs? I years. would more lessors my things Great. years up could to today from important follow-up. from lessors market the they Aengus. now, be where assume X and have share about some that it past be pick

airline business equity of is considerably. they and realizing cost price thought think past. or more in materially the capital is a I think higher from I are pick of isn't a have that inevitable. many of the that do an to and up it cost than airlines. the that have bond. the convertible airlines they'll the has growing The More that I either mean OEMs from been

on, in that it how management of at come that deeply as those owning teams assets really carry capital but that, then is the just know transport must one capital on trade on and a best allocation. don't what the passengers still few we sit I they some our to think approach look And and insist to and inefficient them assets I new very of to portion of be forms for of say, use we at a hard they yes, significant look having of would our

I that's change. think So to going

or airlines the change to new starting come investors will way reacting and are airlines investors one into post-COVID it. as think to I particularly force other, types are that of

So dinosaurs the behind focused imagine that most their see don't I on would that days of are left own happening. the are trying airlines fleet, to it

So I grow. think that I'd market to anyway, lessors share that need fact not they the be confident to lessors for mention will pretty reason alone, continue that the of

lessors. you extremely the strong today I'm the hands sure As say, well of it's value, the XX over of last world's years. By growth past fleet we're been XX% in

to TD move We'll from Moshe next Orenbuch Cowen.

think out buybacks think then of from quarters? industry how and by followed itself period going participates How manifests maybe AerCap you leverage it more that well you the of continually Great. think just that? we an first, accelerated follow-up And you sit here you the do to deliveries do better capacity just as I be got the than there's scenario you're next that? in delayed. and given couple Gus, target, as to that are over that, mean, plays standpoint below a you've out do your Or significant laid a

long avenue value we shareholders Moshe, the we that we choose in the deploy capital. in term the of and interest what to best key -- are company is as best the to for The how creates Well, of the indifferent it's them. you know,

we as a another order like airline's the that announced during part if over of said, so share year book, And deal where we buyback as like took large we just did or to program. we an be happens

too. you We've is of offers the that it as though, back And the is deferred, while and It a has track, to buy been hasn't of buying whichever opportunity. important the it during lot saw well, eliminated, engines a been note, coming course, down been shares. of the CapEx us, best lot year

the the some if spend future we've we've buyers in respects, certainly, little big always borrowing all balance you put done program. today, never first. But been it from sheet of a something bit, So stock the you're look, because we've

And has it sale. operating shareholders. cash will You're right, where capital sheet deploy of balance I flow value as creates for is But don't forget, business the the of flow operating extremely robust. think that we the we delevered. on the said, the course, excludes The most cash gain

the Got congrats Azul of it. And mean, financial on restructuring. getting just as a the quick ahead impact. on I follow-up

-- just planes standpoint. from should have impact. And wanted make this your that only P&L you from Just is the realize sure going revenue view that to that's is forward, a the that, it whatever

we in think however Yes, here. intention, that for restructuring it. that plays certainly. I is to fully have think The was have But So provided look, view, mean, how Moshe. that process, we see our our is right? that that believe we fully that out. That we'll provided we're we still happens,

We'll Epstein to move next America. Ron Instructions] from [Operator of Bank

Day, you Quick we out to Capital event, back demand market. question. investor the balancing go when thought supply you see you'd narrow-body Markets Gus, If and mentioned, the in the

I kind of the time frame. think you late XXXX what mentioned

is. Where to aircraft they narrow-body Boeing now? do happens production equilibrium Given certainly spoke the and has and where guys you behind most When in market? since now? does everybody where to that into for you demand, get would When thought of in think kind market, Airbus seems particular, be the supply that happen be gone you do

right Day, decade, Capital the you're the at Ron, of And a the it's at fair said the And question. XXXXs. I end Markets late

now that the probably maybe end happens. of before the right at decade, XXXX that's 'XX, think I

it's not pointed focused you As on just Boeing. out,

Of their course, Airbus also. have challenges

back? of come. take No, can them, point base If would world. extensions I customer of look they lease to years biggest suppose older they on to with the global of doing I customers tangible years, but What handing which best so you XXXX are that that's short-term Are aircraft the in What hardly of -- a AerCap, issue control our a of basis for at commentary, assets? the for thought of couple they're was the have nature. us the doing this be they them But capacity behavior a short-lived the would almost, is they data a to buying ever. asking their is of owner

Further, our extension at the and buyer biggest But again short extensions. -- highest are of are they're ever, rates been XX%, which our time. have not assets some and for They're they extensions. And indicates customer a that prolonged indicates what just is again that and of the is also our which Airbus. subscribe sees, view this world Boeing base the to they issue. And longer-term it's not

-- It's technology aspects that amount in other those increase shorter X take the Turn be of because -- avionics, all of you repair continue these longer means for on time Time these aircraft if you might these to of come the same example. That new this shop. be used wing the are are will of engines in had spending of times auxiliary it example. The is one the about power and new on demand extreme aircraft, shop engines things overhaul, is units, may longer. aircraft engines. back to and true to is repair assets of an which XXX-XXXs,

the need X may quite the not this MAXs to example, number the for have same purposes of technology, flying of ratio, you hours. It's new but

will engine technology bit as been mature But improvements will installed continue are get but a takes quite to amount bit ground It that fair not the improve aircraft. some time. engines, I will there will there well. We've but technology bad, these on extreme performance time. we an ultimately believe all know coming saying into that that that's be of Ron, slightly, is on side, of for And that example. significant time better. the Now that particularly for that a a It's these

So Rolls-Royce and -- and the with Pratt are issues. at Rolls-Royce obviously, Pratt the of issues and that front the

shift see we mean, older if So a expectations, of sort behavior mean this it's way customer about readjusting having while. I just the airlines may. towards think younger kind just their secular a fleet fleets, going questions, I One, fleets the be trend X and begs to are that's I that the more that of of to changing? for just did is

keep going kind of airplanes Is And this everybody the that supply first question. world That's... needs And I longer? is is, know there's environment that constraint. mean in, given the question does just a to their we're I chain That's third really second permanently my the reversed? beg manufacturer?

don't a want third I manufacturer.

them. enough are have I that? think Do No, are. airlines X to longer? But make want it problems better. X aircraft don't. with We don't do of keeping they they any they for Yes,

that creates know that in You creates massive creates Ron, anything well, that operating leverage is such that business complexity operating creates airline a creates cost, model an uncertainty, delays, problems.

Everything they do. they to can streamline want do to

not from could, into fuel single but efficient of would, burn, it's importantly, course, contract, if they reliable, single very it a more be more So pool, type, they it's pilots fleet to transition single spare may single despite parts efficient as love a engine type operationally. the fact that

the position time of or to think Airbus we an do life I older fill they're that the are have just facing just get on give extended while to that we able where Boeing a reality assets. and books, So until order take

We'll Stathoulopoulos Group. Susquehanna Chris International to from move next

question of Peter, the equilibrium it been, meaningful So the guess they the lack of and and place with strike it's this sound here, introduction event. -- does is following here now it decade But supply-demand realistically on that or in risk end like like looking of here, an your this I the I prepared in not when thought impact, a deliveries just play in spoke have the that your interesting, was the about remarks aftermarket. strike might and what more you

interesting oversupply and to the a I aftermarket the why are you ran with think when some was folks me, engines was of to through market. point the and that's Investor a sort gating natural at factor never of And the way Day that that the your incentivized economics OEMs the

let's see order So you in that here to more little playing and all here, customer it behavior nuanced the assume sort your us Boeing's that then in of relates walk and this strike of aftermarket view bleeds a can place and as into well? as -- that that year, bit kind given new through that kind of book the out with how you

last certainly the doesn't we the hope Well, new strike into year.

distributor all hope the the unless itself needs Boeing when business of involvement. stuff to the but world don't their aircraft in of aircraft, supply in that is a there's guidance interior Boeing, about involvement. without section, chain have the and have that for right, we provides itself I'm you're you happening what you're you business course, is Boeing to that the may class see or a aftermarket. Of huge reconfiguration be lot for you specific really a talking parts. of reconfigure approvals can't Boeing want repairs of of done to

All have seats. the planned airlines these things, They bought that.

Now sign-off Boeing cetera. aircraft, new of design the to give the et as can't their

a chain, things many we that background lot And reasons, year. longer of hope what for times ends. because changing of the longer. see next on the is turn there's happening in with that the going strike. as So don't just We supply said, throughout But I and are

crave affect next the said I in elongated have my to And our too turn times. airlines hard question operating comment on order that that still a previous it's a of XXXX, reasonable we was aircraft? Look, simple And we year. overriding into but thing how that, does in book Hopefully, fairly visibility model. see

assets on. would new not what the so fleet standardized to time, in they it just want. And is they they know time over they transition the feasible do could get the They most technology to but frame their really have it's into hands want

course, the I they will suspect say, we be to book to the extremely longer than want. to fair assets all and I shift to challenge, The I book, about So it do given on our it We've strong shift that for the which the go as question those there's surprised order X-K order will just continue right. guidance that. time, see of for -- we to if they as relates book, delivering right on no our it know, it's few today, go continue think But through next is in as you'll order there's quarters. filing. But wouldn't on demand some

what detail was there you your a question, question second little more here. China. in regionally wondering, And bit to a Okay. terms around give seeing I earlier was can exposure And you're my of

supply-demand the Asia, of balance, schedules stimulus? the sticks with particularly Anything some me, markets at from so better U.S., in the for the news China excuse as seems to the us be Transatlantic, like out behavior, into far so carriers, as So selling that just balance a around or carrier LatAm. and looking coming regionally orders far

strong. year year China, Asia in we the of open that actually China, economy and passports well, continues Southeast think, one China, we of the up narrow-body that because do therefore, to think did restrictions stimulate as issues the demand aircraft. passports Well the ground in to there one, are is market letup extremely dropped on the to in is was international next there I visa market and near faster are in as for mean, domestic market issuance want China, slowed The will And after the interesting in approved and China they down. no domestic

we're from home. people from the that's domestic anyway so the stimulated by staying the That's what was at changing. airlines appeared that outside, It economy and hearing

there's Boeing any being aircraft and there the of delivered And isn't has the be undersupplied aircraft market the there. amount was one Chinese will there orders. of may issues thing well -- there where the you that time for that the been under a Boeing course, because a -- delivered year, but long read So being limited about headlines be were ordered. last over it economy. It hasn't no been in And

market So market be various market I out. U.S. money. The don't that. about far China in that richest long-haul by the and documented of that well world the Transpacific stands all in U.S. still by tensions need where kind slower, of much thing think Transatlantic we guys their make because really have and commentators. geopolitical the of to say The will the the between the issues been is one market the course,

permitted over Southeast to airspace fly Asia Russian airspace. not European being being slower, Europe closed to of too, because Russian carriers and

carriers to can Europe maybe the carriers the of that than fight the has higher a still there's customer for flags level out a go China Chinese discretion either. but certainly to out Russian of flag airspace, demand for through of

months' call, few we very for thank look welcome, on to time, you forward the very us all in not much you joining a before. You're talking and to and if

Thanks, operator.

You can end the call.

That all does your teleconference. for thank you conclude participation. We today's

disconnect. now may You