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Mar 31, 2022
ALC Q1 2022 Earnings Report
ALC's Q1 2022 financial results were announced, revealing a revenue increase but a net loss due to a write-off of Russian fleet.
Key Takeaways
Air Lease Corporation (ALC) reported a 25.7% increase in total revenues to $596.7 million for the three months ended March 31, 2022, compared to the same period in 2021. However, the company recorded a net loss of $479.4 million, or $4.21 per diluted share, due to a write-off of its Russian fleet, though they are pursuing insurance claims. Excluding the write-off and certain adjustments, adjusted net income before income taxes was $200.9 million, or $1.76 per diluted share, a 71.6% increase over the prior period.
Recorded a write-off of approximately $802.4 million related to interests in owned and managed aircraft remaining in Russia, while pursuing insurance claims to recover losses.
Took delivery of eight new aircraft from the order pipeline and one aircraft from the secondary market, representing approximately $490.0 million in aircraft investments.
Placed 97% of contracted orderbook positions on long-term leases for aircraft delivering through the end of 2023 and have placed 52% of the entire orderbook.
Completed a $150 million stock repurchase program, acquiring approximately 3.4 million shares of outstanding Class A common stock.
ALC
ALC
ALC Revenue by Geographic Location
Revenue by Geographic Location
Europe Revenue
CapyFin.comLatAm & Mexico Revenue
CapyFin.comMiddle East & Africa Revenue
CapyFin.comU.S. & Canada Revenue
CapyFin.com Forward Guidance
ALC is monitoring delivery delays from Boeing and Airbus and will adjust accordingly to take advantage of market opportunities, fostering fleet growth in 2022 and beyond.
Positive Outlook
- Industry fundamentals continue to strengthen globally.
- Demand is expanding both for new and young used aircraft.
- Lease rates are continuing to firm.
- The value of existing aircraft in our fleet is bolstering.
- ALC is well-poised to execute successfully on our strategy as the recovery continues.
Challenges Ahead
- Write-off of Russian fleet.
- Monitoring continued delivery delays from Boeing and Airbus very closely.
- Adjustments will be made accordingly to take advantage of market opportunities.
- The extent to which the Russian invasion of Ukraine and the impact of sanctions imposed by the United States, European Union, United Kingdom and other countries affect our business, including our efforts to pursue insurance claims to recover losses related to aircraft that remain in Russia.
- The extent to which the COVID-19 pandemic impacts our business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income