Air Lease Corporation releases details of its first quarter 2024 results

Aircraft leasing and management giant, Air Lease Corporation has just released its financial results for the three months ended March 31, 2024. During the first quarter, ALC took delivery of 14 aircraft from its existing order book, representing approximately $900 million in aircraft investments. The company ended the period with 472 aircraft in its owned fleet and approximately $31 billion in total assets. ALC sold five aircraft during the first quarter for approximately $240 million in sales proceeds.

“With aircraft in short supply and values rising, we benefit from continued fleet expansion and sales activity in an industry backdrop that remains positive. We see this environment continuing for the near to medium term future,” said John L. Plueger, Chief Executive Officer and President, and Steven F. Udvar-Házy, Executive Chairman of the Board.

First Quarter 2024 Results

The following table summarizes our operating results for the three months ended March 31, 2024 and 2023 (in millions, except per share amounts and percentages):

Operating Results

	Three Months Ended March 31,
		2024				2023			$ change				% change
Revenues	$	663.3			$	636.1			$	27.2			4.3	%
Operating expenses		(528.0	)			(477.9	)			(50.1	)		10.5	%
Income before taxes		135.3				158.3				(23.0	)		(14.5	)%
Net income attributable to common stockholders	$	97.4			$	118.3			$	(20.9	)		(17.7	)%
Diluted earnings per share	$	0.87			$	1.06			$	(0.19	)		(17.9	)%
Adjusted net income before income taxes(1)	$	146.3			$	166.8			$	(20.5	)		(12.3	)%
Adjusted diluted earnings per share before income taxes(1)	$	1.31			$	1.50			$	(0.19	)		(12.7	)%

Key Financial Ratios

	Three Months Ended March 31,
	2024			2023
Pre-tax margin	20.4	%		24.9	%
Adjusted pre-tax margin(1)	22.1	%		26.2	%
Pre-tax return on common equity (trailing twelve months)	11.2	%		10.2	%
Adjusted pre-tax return on common equity (trailing twelve months)(1)	11.6	%		11.0	%

(1)

 

Adjusted net income before income taxes, adjusted diluted earnings per share before income taxes, adjusted pre-tax margin and adjusted pre-tax return on common equity have been adjusted to exclude the effects of certain non-cash items, one-time or non-recurring items that are not expected to continue in the future and certain other items. See note 1 under the Consolidated Statements of Operations included in this earnings release for a discussion of the non-GAAP measures and a reconciliation to their most comparable GAAP financial measures.

Air Lease Corporation announces pricing of offering of €600 Million of Senior Unsecured Medium-Term Notes

Air Lease Corporation announced the pricing on March 20, 2024 of its offering of €600 million aggregate principal amount of 3.70% senior unsecured medium-term notes due April 15, 2030 (the “Notes”). The sale of the Notes is expected to close on March 27, 2024, subject to satisfaction of customary closing conditions.

The Notes will mature on April 15, 2030 and will bear interest at a rate of 3.70% per annum, payable annually in arrears on April 15 of each year, commencing on April 15, 2024. Owners of the Notes will receive payments relating to the Notes in Euros.

The Company intends to use the net proceeds of the offering for general corporate purposes, which may include, among other things, the purchase of commercial aircraft and the repayment of existing indebtedness.

BBVA, Deutsche Bank, J.P. Morgan, NatWest Markets, and Societe Generale are acting as joint book-running managers for the offering of the Notes.

Air Lease Corporation announces pricing of offering of €600 Million of senior unsecured medium-term notes

Air Lease Corporation announced the pricing on March 20, 2024 of its offering of €600 million aggregate principal amount of 3.70% senior unsecured medium-term notes due April 15, 2030 (the “Notes”). The sale of the Notes is expected to close on March 27, 2024, subject to satisfaction of customary closing conditions.

The Notes will mature on April 15, 2030 and will bear interest at a rate of 3.70% per annum, payable annually in arrears on April 15 of each year, commencing on April 15, 2024. Owners of the Notes will receive payments relating to the Notes in Euros.

The Company intends to use the net proceeds of the offering for general corporate purposes, which may include, among other things, the purchase of commercial aircraft and the repayment of existing indebtedness.

BBVA, Deutsche Bank, J.P. Morgan, NatWest Markets, and Societe Generale are acting as joint book-running managers for the offering of the Notes.

Transavia to lease two new Airbus A321-200neo jets

Global leasing giant, Air Lease Corporation has confirmed this week it has agreed with Transavia on a long lease deal for two new Airbus A321-200neo aircraft.  

The jets are scheduled to arrive in late 2025 and early 2026 and these two new Airbus A321-200neos join seven A321-200neos ALC has leased to Transavia. The first ALC A321neo aircraft was delivered to Transavia in December 2023 and was the first A321-200neo to join the Dutch carrier’s fleet.

“ALC is pleased to announce this transaction for two additional Airbus A321neo aircraft with Transavia,” said Steven F. Udvar-Házy, Executive Chairman of Air Lease Corporation. “Our nine A321-200neo aircraft will offer significant enhancements and efficiency to the airline’s fleet operations, as demonstrated by the first ALC A321neo that delivered to Transavia last year.”

In addition to the nine Airbus A321-200neo aircraft, ALC has ten Boeing 737-800s on long-term lease to the Dutch carrier.

Air Lease Corporation is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC 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. 

Transavia is a low-cost airline that for the past 50 years has taken great pleasure in flying passengers to over 110 destinations in Europe and North Africa. Transavia stands for accessibility and affordability: whether you are planning a holiday or a business trip, you will always find a flight that fits your budget. Transavia operates from the Netherlands and France.

Air Lease Corporation Announces Fourth Quarter & Fiscal Year 2023 Results

Air Lease Corporation, one of the global leaders in aircraft leasing and management has just released details of its financial results for the three months and year ended December 31, 2023.

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-Házy, Executive Chairman of the Board.

Fourth Quarter 2023 vs. Fourth Quarter 2022

Our total revenues for the three months ended December 31, 2023 increased by 19% to $717 million as compared to the three months 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 three months ended December 31, 2023, we recognized $59 million in gains from the sale of eight aircraft. We also recognized $60 million in end-of-lease revenue related to the return of seven aircraft. During the three months ended December 31, 2022, we recorded approximately $28 million in gains from the sale of six aircraft1.

Air Lease Corporation Activity Update for the Fourth Quarter of 2023

This week, Air Lease Corporation announced an update on aircraft investments, sales, and significant financing activities occurring in the fourth quarter of 2023.

As of December 31, 2023, ALC’s fleet was comprised of 463 owned aircraft and 78 managed aircraft, with 334 new aircraft on order from Boeing and Airbus set to deliver through 2029.

Aircraft Investments

• Delivered 22 new aircraft from ALC’s order book including six Airbus A220s, one Airbus A320neo, eight Airbus A321neos, two Airbus A330-900neos, two Boeing 737-8s, and three Boeing 737-9s.
• Aircraft investments in the quarter totalled approximately $1.2 billion.

Sales

• Sold seven aircraft to third-party buyers.
• Aircraft sales proceeds for the quarter totalled approximately $440 million.

Financing

• Issued C$500 million of 5.4% senior unsecured medium-term notes.
• Upsized senior unsecured revolving credit facility to $7.4 billion from $7.2 billion.

Transavia Airlines gets its first Airbus A321neo

Dutch low-cost carrier Transavia Airlines,  part of  the Air France-KLM group, has taken delivery of its first A321neo on lease from Air Lease Corporation. The aircraft was delivered from Airbus’ Hamburg production facilities taking advantage of Airbus’ option for Sustainable Aviation Fuel (SAF) on its delivery flight to Amsterdam’s Schiphol Airport. With this new aircraft Transavia becomes a new Airbus operator of the type.

This first A321neo marks the beginning of Transavia Airlines’ transition to an all-Airbus latest-generation fleet. Due to its lower fuel consumption and emissions, the A321neo will play a key role in the airline group’s sustainable development goals.

The newly delivered A321neo for Transavia Airlines seats 232 passengers in a single class layout. The cabin features Airbus’ Airspace XL bins. The larger bins provide a 40% more stowage space than previous ones for a more relaxed boarding experience for passengers and cabin crew. In addition, USB-C ports are available for passengers at every seat, and the latest lighting system enhances the overall passenger experience.

The A321neo is the largest member of the Airbus A320neo Family, offering unmatched range and performance. Equipped with sharklets and powered by new generation CFM International LEAP-1A engines, the A321neo delivers a 50 per cent reduction in noise footprint and 20 per cent reduction in fuel burn and CO₂ emissions compared to previous generation single-aisle aircraft.

To date the A321neo has captured more than 5,600 orders received from over 100 customers across the globe.

Air Lease Corporation Announces Delivery of First of Seven New Airbus A321-200neo Aircraft to Transavia

Air Lease Corporation announced one new Airbus A321-200neo aircraft delivered to Transavia. This aircraft is the first of seven new Airbus A321s confirmed to deliver to Transavia on long-term lease from ALC’s order book with Airbus and the first A321-200neo to join the Dutch carrier’s fleet.

“ALC is pleased to announce the first of seven A321-200neo aircraft delivered today to our longtime customer, Transavia,” said Grant Levy, Executive Vice President of Air Lease Corporation. “With these new ALC A321neos, Transavia will continue to excel by offering excellent and efficient service at affordable fares to its customers. We are honoured to introduce the A321-200neo to Transavia and look forward to continuing to assist the airline with its single-aisle fleet development for years to come.”

Transavia is a low-cost airline that for the past 50 years has taken great pleasure in flying passengers to over 110 destinations in Europe and North Africa. Transavia stands for accessibility and affordability: whether you are planning a holiday or a business trip, you will always find a flight that fits your budget. Transavia operates from the Netherlands and France.

Air Lease Corporation is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC 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. 

Danish carrier Sunclass Airlines gets two new Airbus aircraft on lease from ALC - one A321-200neo and one new A330-900neo

Air Lease Corporation announced this week that two new Airbus aircraft were delivered to Sunclass Airlines of Denmark, including one new A321-200neo and one new A330-900neo. Both aircraft were delivered to Sunclass Airlines this December on long-term lease from ALC’s order book with Airbus.

“We are pleased to announce the first of two A321-200neos and the first of three A330-900neos delivered to Sunclass Airlines,” said Steven Udvar-Házy, Executive Chairman of Air Lease Corporation. “With these new ALC aircraft, Sunclass will continue to progress its fleet modernization program adding new generation widebodies and narrowbodies that offer the most advanced technology and efficiency.”

Sunclass Airlines A/S is a Danish charter airline that operates charter services from Norway, Sweden, Denmark and Finland. The company is affiliated with Ving Group, a Nordic tour operator.

Air Lease Corporation is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC 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.

It is an ambitious and proud CEO, Valdemar Warburg, who a few weeks before his one-year anniversary in Sunclass Airlines, receives the second large Airbus neo aircraft says:  "Specifically, we in the Group have a goal of reducing the carbon footprint of our travels by 25 percent by 2030 and to reach zero emissions by 2050. And in this plan, fleet replacement is very central, which is why it is also very pleasing that we can now fly out of 2023 with as many as three neo-aircraft in the fleet – and that the entire replacement actually seems to be going faster than expected."

A330 Family | Airbus Passenger Aircraft

Malaysia Airlines gets the first of 25 new Boeing 737- MAX 8 jets from Air Lease Corp

Global leasing giant Air Lease Corporation has confirmed the first of 25 new Boeing 737- MAX 8 aircraft has been delivered to Malaysia Airlines Berhad from ALC’s order book with Boeing. Featuring CFM LEAP 1B-27 engines, this new Boeing aircraft is the first 737- MAX 8 addition to Malaysia Airlines’ fleet.

“We are thrilled to announce ALC’s first of 25 new Boeing 737- MAX 8 aircraft delivered to Malaysia Airlines,” said Steven Udvar-Házy, Executive Chairman of Air Lease Corporation. “Our significant deal for 25 new Boeing 737- MAX 8 aircraft with MAB is a milestone transaction that demonstrates ALC’s commitment to the national carrier’s long-term fleet modernization and sustainability program. We are honoured to be the first to introduce the 737-8 to the airline.”

This Boeing 737 aircraft joins six Airbus A350-900 aircraft currently on long-term lease to the airline from ALC.

Air Lease Corporation confirms the delivery of a new Airbus A321 aircraft to LATAM Airlines

Today Air Lease Corporation confirmed one new Airbus A321-200neo aircraft has been delivered to LATAM Airlines. This A321-200neo aircraft is the first of eight new Airbus A321s confirmed to deliver to the South American carrier from ALC’s order book with Airbus. Two A321-200neos are scheduled to deliver to the airline from ALC in 2023 and 2024, followed by five A321 XLRs starting in 2025 through 2026.

“ALC is pleased to announce our first A321-200neo delivery to LATAM Airlines today,” said Steven Udvar-Házy, Executive Chairman of Air Lease Corporation. “With this new A321-200neo aircraft, LATAM adds to the airline’s fleet modernization program by obtaining the most advanced technology aircraft to optimize and grow the carrier’s expanding international route network.”

LATAM Airlines is a leading airline in Latin America, the group has a presence in five domestic markets in the region - Brazil, Chile, Colombia, Ecuador and Peru. In addition, it also flies international services within Latin America and to Europe, Oceania, the United States and the Caribbean. 

The group has a fleet of Boeing 767, 777, 787, Airbus A321, A320, A320neo and A319 aircraft. LATAM Cargo Chile, LATAM Cargo Colombia and LATAM Cargo Brazil are the LATAM group's cargo subsidiaries, having a combined fleet of 18 freighter aircraft, which will gradually increase to a total of 19 cargo aircraft by 2024. 

Air Lease Corporation has agreed lease deal for 18 new Boeing 737- MAX 8 jets to EGYPTAIR

Air Lease Corporation announced long-term lease contracts for 18 new Boeing 737- MAX 8 aircraft with EGYPTAIR. These new Boeing aircraft are confirmed to be delivered to the airline beginning in 2025 through 2026 from ALC’s order book with Boeing. This is the first deal between ALC and the Egyptian flag carrier and the first 737- MAX 8 addition to the EGYPTAIR fleet.

“We are pleased to announce this deal for 18 new Boeing 737- MAX 8 aircraft with ALC’s new customer, EGYPTAIR, and be the first to lease the 737- MAX 8 to the airline,” said Steven F. Udvar-Hazy, Executive Chairman of Air Lease Corporation. “As a leading carrier in North Africa, EGYPTAIR will continue to excel in the market with these 18 new generation Boeing 737-MAX 8 aircraft that will replace EGYPTAIR’s aging narrowbody fleet with the most advanced, fuel-efficient Boeing aircraft and will significantly enhance the airline’s fleet operations and competitiveness.”

“Our team is honoured to conclude this important transaction with EGYPTAIR and support the airline with their single-aisle fleet development. We thank our friends at EGYPTAIR for choosing to partner with ALC on this major investment to modernize and grow the carrier's narrowbody fleet and look forward to a successful longstanding relationship between ALC and EGYPTAIR,” added Afeef Louis, Assistant Vice President of Air Lease Corporation

“This major deal with ALC for 18 new Boeing 737-8 aircraft demonstrates EGYPTAIR’s commitment to fleet modernization, environment sustainability and future growth plans. The 737-8 will greatly benefit EGYPTAIR’s operating efficiency and our passenger experience far into the future,” said Yehia Zakaria, Chairman and CEO of EGYPTAIR HOLDING. “We are thrilled to partner with a pioneering lessor such as Air Lease Corporation on this strategic initiative to support EGYPTAIR’s fleet renewal and growth plans.”

ITA Airways takes delivery of its first Airbus A321neo

ITA Airways has taken delivery of its first A321neo on lease from Air Lease Corporation from Airbus’ Hamburg production facilities.  This latest addition further consolidates ITA Airways' all-Airbus fleet strategy, which currently stands at 81 aircraft, and includes the latest generation A220, A320neo, A330neo and A350 aircraft.

ITA Airways’ A321neo,  which will serve the airline’s medium-haul routes, is fitted with a three-class configuration including 12 Business Class full flat beds with direct aisle access, 12 Premium Economy seats in 4-abreast, and 141 Economy seats of which 12 are dedicated to Comfort Economy.

ITA Airways' A321neo aircraft features Airbus' Airspace cabin design, which includes new XL overhead bins and customised interior lighting based on the latest full-LED technologies to help reduce jet lag. In addition, to enhance the passenger experience, each seat is equipped with the latest generation in-flight entertainment system with individual screens and on-demand content.

The A321neo is the largest aircraft in Airbus’ A320neo Family, offering unparalleled range and performance. By incorporating new generation engines and Sharklets, the A321neo brings a 50% noise reduction and more than 20% fuel savings and CO₂ reduction compared to previous generation single-aisle aircraft. Having the widest single-aisle cabin in the sky, the aircraft is the perfect contender for maximising comfort.

To date, more than 5,500 A321neos have been ordered by customers across the globe.

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