Analysts on Wall Street project that Air Lease (AL) will announce quarterly earnings of $1.10 per share in its forthcoming report, representing a decline of 9.1% year over year. Revenues are projected to reach $683.51 million, increasing 13.6% from the same quarter last year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Prior to a co ...

Michael H/Stone via Getty Images Air Lease Corporation (NYSE:AL) stock has gained 14.6%, or a 15.2% total return, since I discussed Air Lease Corporation Q3 2023 earnings in November last year. The broader markets returned 15.1%, so I would say that while the stock did quite well, it did not show the strong outperforming nature that we are looking for. In fact, since I turned bullish on AL stock in May 2022, share price development has failed to impress as its 12% return in stock price value fell short of t ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Air Lease (AL) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 15. On ...

Fuel expenses represent a key input cost for any transportation company. Oil price has increased roughly 8.3% in a month and is currently trading at around $78 a barrel. This surge in a key input cost naturally hurts the bottom-line growth of transportation companies. Oil prices have been on the rise since Russia and Saudi Arabia extended voluntary supply cuts through the end of the current year.Apart from oil expenses, expenses are high on the labor front as well, courtesy of the multiple pay-related deals ...

LOS ANGELES--(BUSINESS WIRE)--Air Lease Corporation (NYSE: AL) (the “Company”) announced the pricing on January 17, 2024 of its public offering of $500.0 million aggregate principal amount of 5.100% senior unsecured medium-term notes due March 1, 2029 (the “Notes”). The sale of the Notes is expected to close on January 24, 2024, subject to satisfaction of customary closing conditions. The Notes will mature on March 1, 2029 and will bear interest at a rate of 5.100% per annum, payable semi-annually in arrea ...

Air Lease Corporation (AL) provided an update on its aircraft investments, sales and financing-related activities, which occurred in the fourth quarter of 2023.As of Dec 31, 2023, Air Lease’s fleet included 463 owned aircraft and 78 managed aircraft. As of Dec 31, 2023, AL had commitments to purchase 334 aircraft from Boeing and Airbus for delivery through 2029.The company had already delivered 22 new aircraft from its order book, which comprises six Airbus A220s, one Airbus A320neo, eight Airbus A321neos, ...

LOS ANGELES--(BUSINESS WIRE)--Today Air Lease Corporation (NYSE: AL) 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 Airbu ...

LOS ANGELES--(BUSINESS WIRE)--Air Lease Corporation (NYSE: AL) will host a conference call on February 15, 2024 at 4:30 PM Eastern Time to discuss the Company’s financial results for the fourth quarter and year end 2023. Investors can participate in the conference call by dialing 1 (888) 660-6652 domestic or 1 (646) 960-0554 international. The passcode for the call is 5952437. The conference call will also be broadcast live through a link on the Investors page of the Air Lease Corporation website at www.a ...

Financial Data and Key Metrics Changes - Air Lease Corporation generated quarterly revenues of $659 million, an increase of approximately 18% compared to the same quarter last year [7] - Earnings per share reached $1.10, up 22% from the previous year's third quarter [7] - Interest expense increased from 3.07% to 3.67% due to rising composite cost of funds [29] - Cash flows from operations rose 34% year-over-year, benefiting from strong airline customer cash collection efforts [29] Business Line Data and Key Metrics Changes - The company purchased eight new aircraft, adding approximately $450 million in flight equipment, and sold eight aircraft for about $350 million in sales proceeds [8] - The utilization rate of the fleet remained strong at 99.9% during the third quarter [8] - The sales pipeline stands at $1.8 billion, including $700 million of aircraft classified as held for sale and $1.1 billion subject to letters of intent [12] Market Data and Key Metrics Changes - Global air travel demand increased by 25% to 30% year-over-year, with international volumes rising approximately 30% [15][19] - Passenger load factors are strong, currently at 85% in October, with an expectation of around 81% for the full year 2023 [21] - The Asia-Pacific region saw international traffic nearly double compared to the prior year, indicating significant recovery [20] Company Strategy and Development Direction - The company has a $23 billion forward order book extending through 2029, positioning it strongly in the current environment [11] - The strategy focuses on maximizing lease rates and returns on valuable new aircraft delivery positions [11] - The company remains positive about its business outlook, benefiting from high-demand aircraft and limited supply [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the current conflict in the Middle East has led to operational challenges but is being monitored closely [14] - There are no major signs of macroeconomic crosswinds impacting aircraft demand, with strong bookings reported by major airlines [15][22] - The company anticipates continued strong demand for new and fuel-efficient commercial aircraft, despite some seasonal fluctuations [15][22] Other Important Information - The Board of Directors approved a 5% increase in the quarterly dividend distribution to $0.21 per share [18] - The company has two aircraft on lease in Israel, with the government providing insurance for those aircraft [14] Q&A Session Summary Question: Impact of GTF on fourth quarter sales margin - Management expects the impact to be progressive over the next 8 to 12 months, with increasing demand and asset values [36][37] Question: Buyers of aircraft sales - Sales are mainly to other leasing companies, with a focus on maintaining a steady stream of aircraft sales [38] Question: Share buybacks consideration - Capital allocation including share buybacks is a consideration, but priority is given to reducing the debt-equity ratio to maintain investment grade ratings [42][43] Question: Economics of lease extensions vs. new marketing - Most airlines prefer to extend leases due to current demand, leading to higher lease rates [46][49] Question: Expectations for deliveries - Management is cautious about fourth quarter deliveries due to ongoing issues with manufacturers [56][57] Question: Freighter market considerations - The cargo market has softened, and the company currently has only one freighter aircraft, which has minimal impact [59][60] Question: Pressure on ultra-low-cost carriers - Management does not have concerns regarding softening aircraft demand, citing strong bookings from major airlines [62][63]

[PART I—FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements, management's discussion, market risk disclosures, and controls and procedures for the period [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Air Lease Corporation as of September 30, 2023, including balance sheets, statements of operations, cash flows, and detailed notes [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $29.7 billion as of September 30, 2023, driven by flight equipment growth, with total liabilities at $22.7 billion and shareholders' equity at $7.0 billion Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$29,672,225** | **$28,396,705** | | Flight equipment, net | $25,595,314 | $24,538,385 | | Cash and cash equivalents | $512,084 | $766,418 | | **Total Liabilities** | **$22,711,172** | **$21,750,342** | | Debt financing, net | $18,645,843 | $18,641,063 | | **Total Shareholders' Equity** | **$6,961,053** | **$6,646,363** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 2023 total revenues increased 17.5% year-over-year to $659.4 million, with net income rising to $132.5 million, and nine-month net income reaching $393.6 million, recovering from a prior-year loss Q3 2023 vs Q3 2022 Performance (in thousands, except per share) | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $659,364 | $561,334 | +17.5% | | Rental of flight equipment | $604,027 | $541,397 | +11.6% | | Interest Expense | $175,464 | $135,510 | +29.5% | | Net Income | $132,450 | $110,381 | +20.0% | | Diluted EPS | $1.10 | $0.90 | +22.2% | Nine Months Ended Sep 30 Performance (in thousands, except per share) | Metric | 9M 2023 | 9M 2022 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,968,409 | $1,715,692 | +14.7% | | Write-off of Russian fleet | $0 | $802,352 | N/A | | Net Income/(Loss) | $393,571 | $(242,334) | N/A | | Diluted EPS | $3.25 | $(2.45) | N/A | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2023, operating cash flow increased to $1.28 billion, investing cash flow decreased to $1.67 billion, and financing cash flow significantly decreased to $122.1 million due to higher debt repayments Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,282,306 | $958,563 | | Net cash used in investing activities | $(1,668,686) | $(2,715,595) | | Net cash provided by financing activities | $122,097 | $1,765,708 | | **Net (decrease)/increase in cash** | **$(264,283)** | **$8,676** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the company's business, debt, fleet, and commitments, including owning 448 aircraft, managing 79, and having 351 on order, with total debt at $18.8 billion - As of September 30, 2023, the company owned **448 aircraft**, managed **79 aircraft**, and had **351 new aircraft** on order from Boeing and Airbus[23](index=23&type=chunk) Debt Financing Summary (in thousands) | Debt Type | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total unsecured debt | $18,520,966 | $18,698,066 | | Total secured debt | $312,326 | $125,363 | | **Total debt financing** | **$18,833,292** | **$18,823,429** | - The company has commitments to purchase **351 aircraft** through 2028, with an estimated aggregate commitment of **$22.6 billion**. Deliveries may be delayed through 2029[50](index=50&type=chunk) - On November 3, 2023, the board of directors increased the quarterly cash dividend on Class A common stock by **5% to $0.21 per share**[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 17.5% Q3 2023 revenue increase to $659.4 million, a $25.6 billion fleet net book value, $6.6 billion liquidity, and 100% orderbook placement through 2025, noting strong demand and manufacturing delays - Q3 2023 revenues increased **17.5% YoY to $659.4 million**, driven by fleet growth and increased sales activity[88](index=88&type=chunk) - The company ended Q3 2023 with total liquidity of **$6.6 billion** and an aggregate borrowing capacity of **$5.4 billion** under its revolving credit facility[87](index=87&type=chunk) - As of September 30, 2023, **100%** of the committed orderbook for aircraft delivering through the end of 2025 has been placed on long-term leases[86](index=86&type=chunk) [Our Fleet](index=25&type=section&id=Our%20Fleet) As of September 30, 2023, the company owned 448 aircraft with a $25.6 billion net book value, a weighted-average age of 4.6 years, and a remaining lease term of 7.0 years, with Europe and Asia as key regions Fleet Metrics | Metric | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Net book value | $25.6 billion | $24.5 billion | | Owned fleet (count) | 448 | 417 | | Managed fleet (count) | 79 | 85 | | Aircraft on order | 351 | 398 | | Weighted-average fleet age | 4.6 years | 4.5 years | | Weighted-average remaining lease term | 7.0 years | 7.1 years | Geographic Diversification by Net Book Value | Region | % of Total (Sep 30, 2023) | | :--- | :--- | | Europe | 36.8% | | Asia (excluding China) | 30.0% | | Central/South America & Mexico | 8.5% | | The Middle East and Africa | 8.3% | | China | 7.3% | [Aircraft Industry and Sources of Revenues](index=29&type=section&id=Aircraft%20Industry%20and%20Sources%20of%20Revenues) Global air traffic recovery drives high aircraft demand and rising lease rates, though increases lag interest rate hikes, while manufacturing delays and engine flaws constrain supply, potentially benefiting lease rates and aircraft values - Global passenger traffic was up **28%** in August 2023 compared to the prior year, driving increased demand for aircraft[112](index=112&type=chunk) - Lease rates have been increasing due to high demand, rising interest rates, and inflation, but continue to lag the pace of interest rate hikes[114](index=114&type=chunk) - Manufacturing flaws in Pratt & Whitney GTF engines are expected to increase the number of A320/A321neo aircraft on the ground through 2026, potentially leading to further delivery delays and benefiting lease rates for other narrowbody aircraft[118](index=118&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q3 2023 with $6.6 billion in liquidity, $18.8 billion in total debt (85.1% fixed-rate, 98.3% unsecured), and a composite cost of funds of 3.67%, with significant future commitments for aircraft purchases and debt obligations - Total available liquidity was **$6.6 billion** at the end of Q3 2023[120](index=120&type=chunk) Debt Profile | Metric | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Debt Outstanding | $18.8 billion | $18.8 billion | | % Fixed-rate | 85.1% | 91.3% | | % Unsecured | 98.3% | 99.3% | | Composite Interest Rate | 3.67% | 3.07% | - Capital allocation priorities are: 1) investing in modern aircraft, 2) maintaining an investment-grade balance sheet, and 3) returning cash to shareholders via dividends and share repurchases[122](index=122&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q3 2023 rental revenue grew to $604.0 million, aircraft sales revenue increased to $55.3 million, and interest expense rose to $175.5 million, leading to a nine-month net income of $362.3 million, a significant recovery from the prior year's loss - Q3 2023 rental revenue increased to **$604.0 million**, up from $541.4 million in Q3 2022, primarily due to fleet growth[158](index=158&type=chunk) - Q3 2023 interest expense increased to **$175.5 million** from $135.5 million in Q3 2022, driven by a higher composite cost of funds[160](index=160&type=chunk) - For the nine months ended Sep 30, 2023, net income was **$362.3 million**, compared to a net loss of **$273.6 million** for the same period in 2022. The 2022 period included an **$802.4 million** write-off related to aircraft detained in Russia[172](index=172&type=chunk)[176](index=176&type=chunk) Reconciliation to Adjusted Net Income Before Income Taxes (in thousands) | | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income/(loss) attributable to common stockholders | $122,025 | $99,956 | $362,296 | $(273,609) | | Adjustments (Amortization, Stock Comp, Taxes, etc.) | $54,982 | $46,384 | $157,408 | $775,317 | | **Adjusted net income before income taxes** | **$177,007** | **$146,340** | **$519,704** | **$501,708** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk from $2.8 billion in floating-rate debt, where a 1.0% rate increase would add $28.1 million to annual interest expense, and minimal foreign exchange risk due to U.S. dollar-denominated contracts - A **1.0% increase** in interest rates on the company's **$2.8 billion** of floating-rate debt would increase annual interest expense by approximately **$28.1 million**[182](index=182&type=chunk) - Foreign exchange risk is considered low as most contracts are denominated in U.S. dollars. However, a stronger U.S. dollar poses a risk to lessees who earn revenue in local currencies[184](index=184&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - The company's Certifying Officers concluded that disclosure controls and procedures were effective as of September 30, 2023[189](index=189&type=chunk) - No material changes were made to the company's internal control over financial reporting during the third quarter of 2023[190](index=190&type=chunk) [PART II—OTHER INFORMATION](index=47&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, other disclosures, and a list of exhibits [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is pursuing legal action against insurers to recover losses from aircraft detained in Russia, a matter not expected to materially adversely affect the company as assets were already written off - The company filed a lawsuit in December 2022 against its insurers to recover losses from aircraft detained in Russia, for which a net write-off of approximately **$771.5 million** was recorded in 2022[192](index=192&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022, have been reported - No material changes in risk factors were reported from those disclosed in the 2022 Form 10-K[194](index=194&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[195](index=195&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) The company reported no information regarding Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements - None[200](index=200&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO, amendments to purchase agreements, and XBRL data files