Air Lease Corporation is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. Air Lease Corporation and its team of dedicated and experienced professionals are principally engaged in purchasing new commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions.
“Fourth quarter and full-year performance at ALC was very strong. With the exception of the benefit of tax reform in 2017, we achieved record revenues and profits for the 4th quarter, with net income increasing 56% and revenues increasing 19% over the prior year’s quarter. Similarly, for the full year 2023, we enjoyed record revenues, aircraft sales, and total assets which exceeded $30 billion for the first time. Looking forward, the commercial aircraft supply/demand backdrop remains highly favourable for our current fleet and our $22 billion forward orderbook scheduled to deliver over the next 4-5 years,” said John L. Plueger, Chief Executive Officer and President, and Steven F. Udvar-Hรกzy, Executive Chairman of the Board.
Fourth Quarter 2023 vs. Fourth Quarter 2022
Our net income attributable to common stockholders for the three months ended December 31, 2023, was $211 million, or $1.89 per diluted share, compared to $135 million, or $1.21 per diluted share, for the three months ended December 31, 2022. The increase from the prior year period was primarily driven by the increase in revenue as discussed above, partially offset by higher interest expense as a result of the increase in our composite cost of funds. In addition, we recognized a net benefit of approximately $67 million from the settlement of insurance claims under S7’s insurance policies related to four aircraft in our owned fleet and our equity interest in certain aircraft in our managed fleet that were previously on lease to S7.
Adjusted net income before income taxes during the three months ended December 31, 2023, was $214 million or $1.92 per adjusted diluted share, as compared to $158 million, or $1.42 per adjusted diluted share, for the three months ended December 31, 2022. The increase in our adjusted net income before income taxes primarily relates to the increase in revenues as discussed above, partially offset by higher interest expense.
Full Year 2023 vs. Full Year 2022
Our total revenues for the year ended December 31, 2023, increased by 16% to $2.7 billion as compared to the year ended December 31, 2022. The increase in total revenues was primarily driven by the continued growth in our fleet, an increase in sales activity and higher end-of-lease revenue. During the year ended December 31, 2023, we recognized $156 million in gains from the sale of 27 aircraft1 and also recognized $124 million in end-of-lease revenue from the return of 22 aircraft. During the year ended December 31, 2022, we recognized $48 million in gains from the sale of 15 aircraft1. In addition, in 2022, we recorded $76.6 million in income related to security deposit forfeitures and maintenance reserve revenue from the return of 12 aircraft as well as the termination of our leasing activities in Russia.
Our net income attributable to common stockholders for the year ended December 31, 2023, was $573 million, or $5.14 per diluted share, as compared to a net loss attributable to common stockholders of $139 million, or $1.24 loss per diluted share, for the year ended December 31, 2022. The increase from the prior year was primarily due to an increase in revenues as discussed above partially offset by higher interest expense, which resulted from an increase in our composite cost of funds. In addition, in 2023, we recognized a net benefit of approximately $67 million from the settlement of insurance claims mentioned above, while in 2022, we recognized a net write-off of $772 million related to our Russian fleet.
Adjusted net income before income taxes during the year ended December 31, 2023, was $734 million or $6.58 per adjusted diluted share, as compared to $660 million, or $5.89 per adjusted diluted share, for the year ended December 31, 2022. The increase in our adjusted net income before income taxes primarily relates to the increase in revenues as discussed above, partially offset by higher interest expense.
1 Aircraft sales include one sales-type lease transaction and two sales-type lease transactions during the quarter and year ended December 31, 2023, respectively. During the quarter and year ended December 31, 2022, aircraft sales includes one sales-type lease transaction and nine sales-type lease transactions, respectively.
Flight Equipment Portfolio
As of December 31, 2023, the net book value of our fleet increased to $26.2 billion, compared to $24.5 billion as of December 31, 2022. As of December 31, 2023, we owned 463 aircraft in our aircraft portfolio, comprised of 345 narrowbody aircraft and 118 widebody aircraft, and we managed 78 aircraft. The weighted average fleet age and weighted average remaining lease term of flight equipment subject to operating lease as of December 31, 2023, was 4.6 years and 7.0 years, respectively. We have a globally diversified customer base comprised of 119 airlines in 62 countries as of December 31, 2023.
