The global aircraft leasing giant Air Lease Corporation has released its latest figures, for the three and six months ended June 30, 2019.
The firm took delivery of 16 aircraft from its our order book and one aircraft from the secondary market during the quarter, representing approximately $1.6 billion in aircraft investments, ending the quarter with an operating portfolio net book value of $17.8 billion with a weighted average age of 3.7 years and a weighted average lease term remaining of 7.2 years.
In June 2019, ALC entered into memorandums of understanding ("MOU") with Airbus to launch the A321 XLR aircraft and to order the A220 aircraft. Through these MOUs, it has the right to purchase 27 A321 XLR aircraft, 23 A321neo aircraft and 50 A220 aircraft, and they have options for an additional 25 A220 aircraft. Rather wisely, they also went into an MOU with Boeing to convert existing purchase orders of 15 737 MAX aircraft to five 787-9 aircraft.
ALC ended the quarter with $28.7 billion in committed minimum future rental payments consisting of $13.5 billion in contracted minimum rental payments on the aircraft in its existing fleet and $15.2 billion in minimum future rental payments related to aircraft on order.
“During the first half of the year we have focused on growing our portfolio, which resulted in a 20% increase in our revenues, despite continued delays from Boeing and Airbus. ALC performance remains strong, with a 34% pre-tax profit margin and 15% pre-tax return on common equity reported in the second quarter. Our industry outlook remains positive, as seen through our robust placement activity and recent orders at the Paris Air Show,” said John L. Plueger, Chief Executive Officer and President.
“ALC eclipsed $20 billion in total assets during the second quarter, and I am also excited to report that in July we delivered the 300th aircraft in our fleet. Our asset base has doubled in just five years, and looking forward we remain very positive on our strong growth outlook,” said Steven F. Udvar-Házy, Executive Chairman of the Board.
"Our owned fleet grew by 13.0% to a net book value of $17.8 billion as of June 30, 2019 compared to $15.7 billion as of December 31, 2018. As of June 30, 2019, our fleet was comprised of 297 owned aircraft, with a weighted-average age and remaining lease term of 3.7 years and 7.2 years, respectively, and 64 managed aircraft. We have a globally diversified customer base of 100 airlines in 57 countries.
During the quarter ended June 30, 2019, we took delivery of 16 aircraft from our order book and one aircraft from the secondary market ending the quarter with 297 owned aircraft in our operating lease portfolio."
The following table details the composition of ALC's owned fleet by aircraft type:
June 30, 2019
|
December 31, 2018
| |||||||||
Aircraft type
|
Number of
Aircraft |
% of Total
|
Number of
Aircraft |
% of Total
| ||||||
Airbus A319-100
|
1
|
0.3
|
%
|
1
|
0.4
|
%
| ||||
Airbus A320-200
|
33
|
11.1
|
%
|
35
|
12.7
|
%
| ||||
Airbus A320-200neo
|
9
|
3.0
|
%
|
6
|
2.2
|
%
| ||||
Airbus A321-200
|
34
|
11.6
|
%
|
34
|
12.4
|
%
| ||||
Airbus A321-200neo
|
23
|
7.7
|
%
|
14
|
5.1
|
%
| ||||
Airbus A330-200
|
14
|
4.7
|
%
|
15
|
5.4
|
%
| ||||
Airbus A330-300
|
6
|
2.0
|
%
|
5
|
1.8
|
%
| ||||
Airbus A330-900neo
|
5
|
1.7
|
%
|
1
|
0.4
|
%
| ||||
Airbus A350-900
|
9
|
3.0
|
%
|
6
|
2.2
|
%
| ||||
Boeing 737-700
|
4
|
1.4
|
%
|
4
|
1.4
|
%
| ||||
Boeing 737-800
|
96
|
32.3
|
%
|
98
|
35.6
|
%
| ||||
Boeing 737-8 MAX
|
15
|
5.1
|
%
|
14
|
5.1
|
%
| ||||
Boeing 767-300ER
|
1
|
0.3
|
%
|
1
|
0.4
|
%
| ||||
Boeing 777-200ER
|
1
|
0.3
|
%
|
1
|
0.4
|
%
| ||||
Boeing 777-300ER
|
24
|
8.1
|
%
|
24
|
8.7
|
%
| ||||
Boeing 787-9
|
21
|
7.1
|
%
|
15
|
5.4
|
%
| ||||
Embraer E190
|
1
|
0.3
|
%
|
1
|
0.4
|
%
| ||||
Total(1)
|
297
|
100.0
|
%
|
275
|
100.0
|
%
| ||||
| (1) |
As of June 30, 2019 and December 31, 2018, we had three aircraft held for sale and six aircraft held for sale, respectively
|
The following table summarizes the key portfolio metrics of the ALC fleet as of June 30, 2019 and December 31, 2018:
June 30, 2019
|
December 31, 2018
| |||||
Aggregate fleet net book value
|
$
|
17.8 billion
|
$
|
15.7 billion
| ||
Weighted-average fleet age(1)
|
3.7 years
|
3.8 years
| ||||
Weighted-average remaining lease term(1)
|
7.2 years
|
6.8 years
| ||||
Owned fleet
|
297
|
275
| ||||
Managed fleet
|
64
|
61
| ||||
Aircraft on order(2)
|
343
|
372
| ||||
Aircraft purchase options(3)
|
50
|
50
| ||||
Total
|
754
|
758
| ||||
Current fleet contracted rentals
|
$
|
13.5 billion
|
$
|
11.8 billion
| ||
Committed fleet rentals
|
$
|
15.2 billion
|
$
|
13.9 billion
| ||
Total committed rentals
|
$
|
28.7 billion
|
$
|
25.7 billion
| ||
(1)
|
Weighted-average fleet age and remaining lease term calculated based on net book value.
| |
(2)
|
Excluded from the table above are MOUs with Airbus, signed in June 2019, to launch the A321 XLR aircraft and to order the A220 aircraft. Through these MOUs, we have the right to purchase 27 A321 XLR aircraft, 23 A321neo aircraft and 50 A220 aircraft and we have options for an additional 25 A220 aircraft. Also excluded from the table above is an MOU with Boeing, signed in June 2019, to convert existing purchase orders of 15 737 MAX aircraft to five 787-9 aircraft.
| |
(3)
|
As of June 30, 2019, we had options to acquire up to five Airbus A350-1000 aircraft and 45 Boeing 737-8 MAX aircraft, which does not include options to purchase an additional 25 Airbus A220-300 aircraft pursuant to a MOU executed in June 2019. As of December 31, 2018, we had options to acquire up to five Airbus A350-1000 aircraft and 45 Boeing 737-8 MAX aircraft.
|
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