Why AerCap Stock Is Up Big Today

Shares of AerCap Holdings (NYSE: AER) jumped more than 12% at the open on Monday on reports the air leasing specialist is near a transformative deal with General Electric (NYSE: GE). AerCap is among the best operators in this niche area, and investors are responding enthusiastically to the idea of the company adding to its fleet.

AerCap is in the business of buying airplanes and leasing them back to airlines. That involves taking on a lot of debt, and the stock fell by nearly 75% in the early days of the pandemic on fears that airline customers would default and drag AerCap down with them.

That proved to be an overreaction, and the stock has gradually recovered most of what it lost as management was able to demonstrate the resiliency of its portfolio and airlines began to recover. Now, AerCap appears poised to dramatically grow its business and investors are taking notice.

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Source Fool.com