06 May, 2022

Air Lease Corporation Announces First Quarter 2022 Results

Air Lease Corporation Announces First Quarter 2022 Results

Air Lease Corporation has just announced its financial results for the three months ended March 31, 2022.

John L. Plueger, Chief Executive Officer and President said: “Industry fundamentals continue to strengthen globally – demand is expanding both for new and young used aircraft, supporting continued 
firming of lease rates and bolstering the value of the existing aircraft in our fleet. We benefited from this improving backdrop during the first quarter. While we wrote-off our Russia exposure, we are vigorously pursuing our insurance coverage and believe we have strong and valid claims,” 

Steven F. Udvar-Hรกzy, Executive Chairman of the Board said:  “With the strengthening market, we are monitoring continued delivery delays from Boeing and Airbus very closely, and will adjust accordingly to take advantage of market opportunities – fostering fleet growth in 2022 and beyond. ALC is well-poised to execute successfully on our strategy as the recovery continues. We are also pleased to report that we have fully completed our $150 million common stock repurchase program,” 

Flight Equipment Portfolio
As of March 31, 2022, the net book value of our fleet decreased to $22.3 billion, compared to $22.9 billion as of December 31, 2021. The decrease is due to the write-off of the net book value of our 21 aircraft that remain in Russia, totalling approximately $791.0 million, partially offset by the delivery of eight new aircraft from our new order pipeline and one aircraft from the secondary market. As of March 31, 2022, we owned 370 aircraft in our aircraft portfolio, comprised of 268 narrowbody aircraft and 102 widebody aircraft, and we managed 87 aircraft. 

The 21 aircraft that remain in Russia have been removed from our owned fleet count. The weighted average fleet age and weighted average remaining lease term of our fleet as of March 31, 2022, was 4.5 years and 7.0 years, respectively. We have a globally diversified customer base of 114 airlines in 60 countries. 

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 For the quarter ended March 31, 2022, we recorded a write-off of our interests in our owned and managed aircraft that remain in Russia, totaling approximately $802.4 million. However, we are vigorously pursuing insurance claims to recover losses relating to these aircraft. 
Took delivery of eight aircraft from our new order pipeline, and one aircraft from the secondary market, representing approximately $490.0 million in aircraft investments. As of March 31, 2022, we had 370 aircraft in our owned fleet, with a net book value of $22.3 
billion, a weighted average age of 4.5 years and a weighted average lease term remaining of 7.0 years. 

Placed 97% of our contracted orderbook positions on long-term leases for aircraft delivering through the end of 2023 and have placed 52% of our entire orderbook.

Ended the quarter with $29.5 billion in committed minimum future rental payments consisting of $14.1 billion in contracted minimum rental payments on the aircraft in our existing fleet and $15.4 billion in minimum future rental payments related to aircraft on order. 
Issued $1.5 billion in aggregate principal amount of senior unsecured notes comprised of $750 million at a fixed rate of 2.20% due 2027 and $750 million at a fixed rate of 2.875% due 2032.
We amended our syndicated unsecured revolving credit facility (the “Revolving Credit Facility”), increasing the total commitments to $7.0 billion across 52 financial institutions as of May 5, 2022 and extending the final maturity by one year to May 5, 2026.

 As of April 4, 2022, we completed our $150 million stock repurchase program through which we acquired approximately 3.4 million shares of our outstanding Class A common stock.

On May 4, 2022, our board of directors declared a quarterly cash dividend of $0.185 per share on our outststanding common stock.  The dividend will be paid on July 8, 2022 to holders of record of our common stock as of June 7, 2022.


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