Netherlands-based airplane lessor AerCap Holdings (AER 0.08%) landed a big sale-and-leaseback contract with customer LATAM Airlines Group Wednesday.
Valued at $2.6 billion, the deal will have AerCap buy 25 wide-body aircraft, including nine new Airbus A350-900s, four new Boeing 787-9s, and two new Boeing 787-8s that LATAM has on order from Airbus and Boeing, respectively, plus an additional 10 "used" Airbus A330-200s already in LATAM's fleet. AerCap will then lease all 25 aircraft back to LATAM for its use, making its profit by collecting lease payments over a term of years.
In a statement, AerCap called the deal "landmark" and said it gives AerCap "an attractive opportunity to expand our widebody portfolio with the most in-demand, new technology aircraft and to place them on long-term leases to one of the world's leading airlines."
AerCap shares are up 3.5% in early Thursday trading, circling $17.37.
