ALC Q2 2021 Earnings Report
Key Takeaways
Air Lease Corporation reported a decrease in revenues by 5.7% to $491.9 million compared to the same period last year. Net income available to common stockholders was $85.6 million, with diluted earnings per share at $0.75. The company took delivery of 12 aircraft and maintained a strong lease placement rate.
Took delivery of 12 aircraft from orderbook, representing $971 million in aircraft investments.
Placed 93% of contracted orderbook positions on long-term leases for aircraft delivering through the end of 2022.
Ended the quarter with $27.1 billion in committed minimum future rental payments.
To date, 52% of the lease deferrals granted have been repaid, representing $126.9 million.
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ALC Revenue by Segment
ALC Revenue by Geographic Location
Forward Guidance
The airline industry is improving with passenger traffic staging a robust recovery in the U.S.A., Mexico, China, Russia, and most of Europe.
Positive Outlook
- Passenger traffic is staging a robust recovery in the U.S.A., Mexico, China, Russia, and most of Europe.
- Pent up demand is resulting in rapid and strong recovery when and where travel restrictions are lifted.
- Canada opening its borders should provide a further stimulant to North America.
- Strong freight and e-commerce demand is aiding airline recovery globally, which is particularly beneficial for our widebody customers in Asia and Europe.
- Fitch Ratings reaffirmed our corporate and long-term debt ratings at BBB and upgraded our outlook to stable.
Challenges Ahead
- International and long haul traffic at a much slower recovery rate.
- Outside of China, Asia overall lags in traffic recovery and vaccination rates.
- Still face some customer and OEM challenges in the near term.
- Airline profitability impacted by manufacturing delays and the impact of COVID-19.
- Aircraft delivery schedule could continue to be subject to material changes and delivery delays could potentially extend well into 2022 and beyond.