Jun 30, 2022

ALC Q2 2022 Earnings Report

ALC's financial performance improved, driven by fleet growth and strong aircraft placements.

Key Takeaways

Air Lease Corporation reported a good second quarter with revenues increasing by 13.4% to $557.7 million and net income attributable to common stockholders increasing to $105.9 million. The company took delivery of 21 aircraft and maintained a high placement rate for its orderbook.

Revenues increased by 13.4% to $557.7 million compared to the same period last year.

Net income attributable to common stockholders was $105.9 million, or $0.95 per diluted share.

Took delivery of 21 aircraft from the new order pipeline and one new incremental aircraft, representing approximately $1.4 billion in aircraft investments.

Placed 99% of contracted orderbook positions on long-term leases for aircraft delivering through the end of 2023.

Total Revenue
$558M
Previous year: $492M
+13.4%
EPS
$1.39
Previous year: $1.1
+26.4%
NBV of Flight Equipment
$23.5B
Previous year: $21.5B
+9.3%
WA Fleet Age
4.4
Previous year: 4.3
+2.3%
WA Remaining Lease Term
7.1
Previous year: 6.9
+2.9%
Gross Profit
$203M
Previous year: $160M
+26.8%
Cash and Equivalents
$1.01B
Previous year: $1.21B
-16.3%
Free Cash Flow
$380M
Previous year: $308M
+23.5%
Total Assets
$27.6B
Previous year: $25.8B
+7.3%

ALC

ALC

ALC Revenue by Segment

ALC Revenue by Geographic Location

Forward Guidance

The company expects continued strong passenger traffic growth and increasing lease rates due to diminishing aircraft supply.

Positive Outlook

  • Strong passenger traffic growth.
  • Increasing international volume.
  • Lease placements stretching further into the future.
  • Strengthening lease rates.
  • Diminishing aircraft supply.

Challenges Ahead

  • Aircraft shortages.
  • Concerns about future new aircraft delivery delays.
  • Increasing interest rates.
  • Higher aircraft values.
  • Loss of rental revenue from the termination of leasing activities in Russia.