AerCap Holdings N.V. and Frontier Group Holdings entered into a non‑binding agreement on February 11 2026 that will see 24 Airbus A320neo aircraft currently leased to Frontier returned to AerCap during the second quarter of 2026. The aircraft, all of which have lease agreements set to expire within the next two to eight years, will be returned earlier than originally scheduled, giving AerCap the opportunity to redeploy the relatively young, fuel‑efficient planes into its broader portfolio.
The deal also includes a commitment from AerCap to provide Frontier with ten future sale‑leaseback transactions for aircraft deliveries scheduled for 2028 and 2029. These future agreements lock in lease revenue for AerCap while giving Frontier access to new aircraft without the upfront capital outlay, reinforcing the long‑standing partnership between the two companies.
AerCap’s 2025 financial results—GAAP net income of $3.8 billion and adjusted net income of $2.7 billion—were the strongest in the company’s history, and the firm has guided full‑year 2026 adjusted earnings per share to $12.00–$13.00. The early return and future sale‑leaseback commitments fit within AerCap’s strategy of maintaining a young, fuel‑efficient fleet and maximizing asset utilization, which has been a key driver of its record profitability.
Frontier’s perspective centers on fleet right‑sizing and cost control. The early return allows the airline to trim its A320neo count in line with demand forecasts, while the sale‑leaseback deals provide a predictable, low‑cost source of new aircraft. Frontier’s management has projected annual run‑rate cost savings of roughly $200 million by 2027, and the new arrangement is expected to support that goal.
"This agreement is a testament to the strong and enduring relationship between Frontier, AerCap and CFM International," said Jimmy Dempsey, President and CEO of Frontier Airlines. "It represents a significant milestone in our new strategy to improve the productivity of the airline by disciplined right‑sizing of our fleet. We are delighted AerCap will remain one of our largest lessors and look forward to expanding our partnership with an additional ten sale‑leaseback transactions." Aengus Kelly, CEO of AerCap, added, "The transaction enables Frontier to optimize its fleet and AerCap to redeploy these assets in support of CFM’s strategic objectives, highlighting our unique commercial capabilities and engine‑leasing expertise. The ten future sale‑leaseback transactions further strengthen our long‑term partnership with Frontier."
The agreement underscores AerCap’s focus on fleet optimization and its broader strategy to enhance asset utilization. By securing early returns and future sale‑leaseback opportunities, AerCap can accelerate cash flow generation and maintain a high‑quality, fuel‑efficient fleet that aligns with its growth objectives, while Frontier gains operational flexibility and cost savings that support its long‑term competitiveness.
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