Group 1 - The article discusses the author's initial investment in the aircraft leasing sector, specifically in Air Lease (NYSE: AL), highlighting its perceived value [1] - The author emphasizes a fundamental analysis approach, focusing on undervalued assets that present a favorable risk/reward profile [1] - The investment strategy includes the use of options, such as covered calls on overvalued stocks and writing puts on desired stocks at lower prices [1] Group 2 - The author has a beneficial long position in Air Lease (AL) and AerCap (AER) through various financial instruments [2] - The article is a personal opinion piece, with no external compensation received for its content [2] - There is a disclaimer regarding the lack of guarantee that past performance will predict future results, and no specific investment advice is provided [3]

Company Overview - Air Lease (AL) shares increased by 9.2% to $44.19 in the last trading session, following a higher-than-average trading volume, contrasting with a 7.5% loss over the past four weeks [1][2] Financial Performance - Air Lease is expected to report quarterly earnings of $1.24 per share, reflecting a year-over-year decline of 5.3%. Revenue is anticipated to be $712.78 million, which is a 7.5% increase from the same quarter last year [3] - Total aircraft investments in the first quarter of 2025 amounted to $800 million, primarily occurring in the latter half of the March quarter [2] Aircraft Fleet and Commitments - As of March 31, 2025, Air Lease's fleet comprised 487 owned aircraft and 57 managed aircraft. The company has commitments to purchase 255 aircraft from Boeing and Airbus for delivery through 2029 [2] Market Position and Trends - The consensus EPS estimate for Air Lease has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - Air Lease holds a Zacks Rank of 3 (Hold), similar to Ryder (R), which also has a Zacks Rank of 3 and reported an 11.1% increase in its stock price [4][5]

Group 1 - A hacker has breached NetJets, an aviation leasing company owned by Warren Buffett, and stolen customer data [1] - The incident raises concerns about cybersecurity in the aviation leasing industry [1] - The breach may impact customer trust and the company's reputation [1] Group 2 - The aviation leasing sector is increasingly vulnerable to cyber threats, highlighting the need for enhanced security measures [1] - Companies in the industry may face regulatory scrutiny following this incident [1] - The breach could lead to potential financial implications for NetJets and its parent company [1]

Company Overview - Air Lease Corporation (AL) reported its aircraft investments, sales, and financing activities for Q1 2025, with a fleet comprising 487 owned and 57 managed aircraft as of March 31, 2025 [1] - The company has commitments to purchase 255 aircraft from Boeing and Airbus for delivery through 2029 [1] Investment and Sales Activity - In Q1 2025, AL delivered 14 new aircraft, including four Airbus A220s, eight Boeing 737-8s, one Boeing 737-9, and one Boeing 787-10, and sold 16 aircraft to third-party buyers [2] - Total aircraft investments in Q1 2025 amounted to $800 million, primarily occurring in the latter half of March [2] - The company noted that steady fleet growth and increased sales activity are driving top-line growth [2] Earnings Outlook - AL is expected to release its Q1 2025 earnings report on May 5, after market close, following the positive fleet numbers reported [3] Market Position - Air Lease currently holds a Zacks Rank of 3 (Hold) [4] - Investors in the Zacks Transportation sector may also consider Air Transport Services Group (ATSG) and Expeditors International of Washington (EXPD) as alternative investment options [5] Competitor Analysis - ATSG has a Zacks Rank of 2 (Buy) with an expected earnings growth rate of 31% for the current year and a consistent earnings surprise history [6][7] - EXPD also carries a Zacks Rank of 2, with a 2.2% upward revision in the earnings consensus estimate for 2025 and a strong earnings surprise track record [8]

Core Viewpoint - The article discusses the recent performance of Air Lease Corporation (NYSE: AL) following a buy rating issued in November, questioning whether the current stock price presents an attractive entry point for investors [2]. Group 1: Company Analysis - Air Lease Corporation's stock has declined since the buy rating was issued, prompting a reevaluation of its investment potential [2]. - The analysis is conducted by an expert with a background in aerospace engineering, focusing on the aerospace, defense, and airline industry, which is characterized by significant growth prospects [2]. Group 2: Investment Insights - The investing group aims to identify investment opportunities within the aerospace, defense, and airline sectors, utilizing data-informed analysis to guide investment ideas [2]. - The report emphasizes the importance of context in understanding industry developments and their potential impact on investment theses [2].

Core Insights - Air Lease Corporation (AL) reported strong fourth-quarter 2024 results, with earnings per share (EPS) of $1.34 exceeding the Zacks Consensus Estimate of $1.14, although the EPS declined year over year due to increased interest expenses [1][2] - Total revenues reached $712.9 million, surpassing the Zacks Consensus Estimate of $706.4 million, but showed a slight decline of 0.5% year over year [2] Financial Performance - AL's rental revenues from flight equipment decreased by 1% year over year to $638.9 million, attributed to lower end-of-lease revenues of approximately $54 million due to fewer aircraft returns [4] - Revenues from aircraft sales and trading activities grew by 2% year over year to $73.9 million, driven by a profit of $65 million from the sale of 14 aircraft during the quarter [5] - Operating expenses increased by 10.8% year over year to $572.9 million [5] Strategic Outlook - The CEO and executive chairman highlighted that AL generated record revenues in 2024, supported by $5 billion in aircraft purchases and $1.7 billion in aircraft sales, with expectations for rising lease rates and aircraft valuations due to anticipated aircraft shortages [3] - As of December 31, 2024, AL owned 489 aircraft with a net book value of $28.2 billion, contributing to a total fleet size of 818 [6] Cash and Debt Position - At the end of the fourth quarter, AL had $472.55 million in cash and cash equivalents, an increase from $460.78 million in the previous quarter [7] - The company's debt financing amounted to $20.20 billion, slightly up from $20.16 billion in the prior quarter [7]

Financial Data and Key Metrics Changes - In Q4 2024, Air Lease Corporation generated revenues of $713 million, with diluted earnings per share at $0.83, benefiting from fleet expansion but offset by lower end-of-lease revenue compared to the prior year [9][48] - Full-year 2024 revenue and ending fleet net book value reached record levels in the company's history [9] - Interest expense rose by approximately $38 million year over year, driven by a 37 basis point increase in the composite cost of funds to 4.14% [52] Business Line Data and Key Metrics Changes - The company purchased 18 new aircraft during the quarter, adding $1.3 billion in flight equipment, and sold 14 aircraft for approximately $540 million [10][50] - Fleet utilization remained robust at 100%, with a stable weighted average age of the fleet at 4.6 years and a slight extension in the weighted average lease term remaining to 7.2 years [10][11] Market Data and Key Metrics Changes - Total passenger traffic volumes rose by more than 10% in 2024 compared to 2023, reaching all-time record levels, with international volumes increasing by 14% year over year [36][39] - Asia Pacific was the leading international market, rising 25% during the year, while domestic volumes grew by 6% [38][39] Company Strategy and Development Direction - The company plans to self-fund new aircraft deliveries from operating cash flow and aircraft sales, anticipating debt funding of approximately $2 billion in 2025 [13][26] - Air Lease Corporation aims to return to a target debt-to-equity ratio of 2.5 to 1 by the end of 2025, considering various capital allocation avenues post-target achievement [26][68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving mid-teen adjusted pre-tax ROEs within two to three years, contingent on lease and interest rate developments [64][108] - The company expects a steady upward trajectory in fleet lease yields over the next several years, driven by higher lease rates on extensions and the roll-off of lower-yielding leases from the pandemic [23][59] Other Important Information - The company reported a solid sales pipeline of $1.1 billion, with expectations of approximately $1.5 billion in overall sales for 2025 [25] - Air Lease Corporation donated $500,000 to LA City and County Fire Departments in response to recent fires in Los Angeles [30] Q&A Session Summary Question: What gets the company back to mid-teen adjusted pre-tax ROEs? - Management believes achieving mid-teen ROEs is possible within two to three years, considering various positive and negative factors [64][66] Question: What capital allocation options are being considered? - Once the debt-to-equity target is reached, the board will consider multiple scenarios, including potential stock buybacks [68][69] Question: Will net spread margin increase with planned funding needs? - For 2025, the expectation is to maintain similar levels to 2024, depending on interest rate developments [72] Question: Are lease renewals improving in the current environment? - Lease rates for extensions are expected to be higher than initial terms, indicating a strengthening environment [96] Question: What is the outlook for aircraft supply normalization? - Management does not foresee normalization of aircraft supply for several years, citing ongoing production challenges [119] Question: How long will it take for the industry to recover from supply shortages? - The timeframe for recovery has been extended, with significant constraints noted in engine availability and production capacity [126] Question: Will older aircraft leases last longer due to supply constraints? - Yes, airlines are keeping older equipment in service longer, which may extend lease durations [130] Question: Is there a need for a third aircraft supplier? - There is potential for a third supplier, but it would require a partner with financial resources and a viable engine solution [134]

Financial Performance - Net income attributable to common stockholders for the year ended December 31, 2024, was $372.1 million, a decrease of 35.1% from $572.9 million in 2023[23]. - Adjusted net income before income taxes for the year ended December 31, 2024, was $574.2 million, down 21.8% from $733.6 million in 2023[24]. - As of December 31, 2024, the company's total consolidated indebtedness was approximately $20.2 billion, with interest payments of approximately $794.3 million for the year[80]. - The composite cost of funds increased from 3.77% at December 31, 2023, to 4.14% at December 31, 2024, due to elevated interest rates[86]. - The company incurred a $5.6 million loss during the year ended December 31, 2024, due to currency fluctuations on unhedged foreign currency investments[325]. Fleet and Operations - The net book value of the fleet increased by 7.4% to $28.2 billion as of December 31, 2024, compared to $26.2 billion as of December 31, 2023[32]. - Passenger traffic volume increased by 10% in 2024, with international traffic rising by 14% and domestic traffic by 6%[26]. - The company aims to acquire modern, fuel-efficient aircraft, focusing on replacing aging fleets and opportunistic purchases in the secondary market[37]. - The company maintains a portfolio of young modern aircraft and primarily orders new planes directly from manufacturers, selling them when they near the end of the first third of their expected 25-year useful life[52]. - As of December 31, 2024, the company had a managed fleet of 60 aircraft, expanding its customer base through fleet management services[53]. Market Conditions and Competition - The aircraft leasing industry is highly competitive, with competition based on delivery dates, lease rates, and aircraft condition[65]. - The company expects continued demand for aircraft leasing due to the need for airlines to replace aging aircraft and ongoing delivery delays from manufacturers[27]. - Lease rates on new agreements and extensions increased, with the highest delivery lease yield in over four years reported in Q4 2024[29]. - The company is exposed to risks from lessee defaults, with expectations of increased defaults and bankruptcies in the airline industry[113]. - Increased competition from other aircraft lessors may impact the company's ability to execute its long-term strategy[120]. Risks and Challenges - The Boeing labor strike in late 2024 is expected to impact aircraft deliveries and the broader aviation supply chain[28]. - The company faces risks related to its capital requirements and debt financings, which may adversely affect its business operations[80]. - The company may incur significant costs in repossessing aircraft, including legal fees and potential delays in obtaining possession[118]. - The company is subject to extensive government regulations regarding aircraft registration, operation, and maintenance, impacting its leasing operations[66]. - The company may face challenges in ensuring that lessees maintain adequate insurance coverage, which could result in increased costs and liabilities[127]. Economic and External Factors - High inflation rates may negatively impact the value of leases and increase operational costs, affecting financial results[106]. - Macroeconomic events, such as the COVID-19 pandemic, have historically disrupted air travel and adversely affected the company's financial condition[136]. - The company is exposed to risks from natural disasters, particularly given its principal office location in Los Angeles[137]. - The airline industry is subject to evolving environmental regulations that may increase costs for lessees and impact their ability to make lease payments[151]. - Changes in fuel costs could negatively affect lessees' operating results, impacting their ability to meet lease obligations[147]. Customer and Revenue Concentration - The average customer concentration is approximately 1.0% of the fleet net book value, indicating a highly diversified customer base[36]. - As of December 31, 2024, the company had concentrated customer exposure with top five lessees, with 7.8% and 2.5% of aircraft by net book value leased to customers in Taiwan and China, respectively[109]. - More than 95% of the company's revenues for the year ended December 31, 2024, were derived from customers outside the U.S., with most lease payments denominated in U.S. dollars[148]. Debt and Financing - The company finances aircraft purchases with available cash, operating lease cash flows, and debt financing, focusing on maintaining investment-grade credit metrics[54]. - The company had $16.1 billion of fixed rate debt and $4.3 billion of floating rate debt outstanding as of December 31, 2024[85]. - If the composite interest rate on outstanding floating-rate debt increases by 1.0%, the company expects to incur additional annual interest expense of approximately $42.8 million in 2024[323]. - Approximately 6.1% of the company's debt obligations were denominated in foreign currency as of December 31, 2024, with effective hedging in place[326]. Management and Workforce - As of December 31, 2024, the company had 165 full-time employees, with 39% being multicultural and 52% female[73]. - The company is committed to pay equity and regularly reviews compensation practices for all employees[73]. - The company relies on its senior management team, and the loss of key officers could negatively impact its business[128].

Exhibit 99.1 Air Lease Corporation Announces Fourth Quarter and Fiscal Year 2024 Results Los Angeles, California, February 13, 2025 — Air Lease Corporation (ALC) (NYSE: AL) announces financial results for the three months and year ended December 31, 2024. "ALC generated record revenues in 2024, driven by our $5 billion in aircraft purchases from our orderbook, and $1.7 billion in aircraft sales. Looking forward, we expect lease rates and aircraft valuations to rise, supporting the value of our business. We ...

Air Lease Corporation (AL) is scheduled to report fourth-quarter 2024 results on Feb. 13, after market close.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for AL’s fourth-quarter 2024 earnings has remained stable at $1.17 in the past 90 days. The consensus mark implies a 38.1% decline from the year-ago reported figure.Air Lease’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, the average beat being 10.26%. However, t ...