Why Shares of AerCap Are Up Today
Shares of AerCap Holdings (NYSE: AER) spiked 19% at the open Tuesday after the airplane leasing specialist reported better-than-expected earnings and laid out its case for why it will survive the COVID-19 pandemic. The stock fell back down after the open but is still handily outpacing the S&P 500 in midday trading.
Shares of AerCap have lost about half their value this year due to fears the company would be dragged down by troubles experienced by its customers. Airlines have been hit hard by the pandemic, and with travel demand down 90% year over year, the carriers are looking to cut costs, including shedding unneeded airplanes.
Many of those planes are owned by AerCap, which buys new planes directly from the manufacturers and leases them to the airlines. With airlines retrenching, AerCap's business is almost certain to take a hit, and investors have reacted by racing to the sidelines.
Source Fool.com
