Why AerCap Shares Are Falling Today
AerCap Holdings (NYSE: AER) is withdrawing from the Russian market due to geopolitical tensions, a move that is likely to be costly to the company's bottom line. Shares of the aircraft leasing company fell more than 15% on Monday morning as investors digested what the move will mean for the business.
AerCap is in the business of buying planes directly from manufacturers and leasing them to airlines. When times are good, AerCap is a great way to invest in growing travel demand without having to tie your fortunes to any one airline, but the model does come with risk. It is a highly leveraged business, and needs the leases on its planes to pay down its debt.
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Source Fool.com
