ALC Q2 2024 Earnings Report
Key Takeaways
Air Lease Corporation reported a decrease in net income attributable to common stockholders for the three months ended June 30, 2024, to $90 million, or $0.81 per diluted share, compared to $122 million, or $1.10 per diluted share, for the same period in 2023. The decrease was primarily due to higher interest expense and a decline in revenues.
Took delivery of 13 aircraft from orderbook, representing approximately $940 million in aircraft investments.
Sold 11 aircraft during the second quarter for approximately $530 million in sales proceeds.
Placed 100% and 96% of committed orderbook on long-term leases for aircraft delivering through the end of 2025 and 2026, respectively.
Ended the quarter with $30.0 billion in committed minimum future rental payments.
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ALC Revenue by Segment
ALC Revenue by Geographic Location
Forward Guidance
Air Lease Corporation continues to manage its business amid ongoing aircraft and engine manufacturing delays.
Positive Outlook
- Significant value in orderbook based on long-term aircraft demand.
- Strong passenger traffic trends.
- High percentage of committed orderbook placed on long-term leases.
- Solid committed minimum future rental payments.
- Maintained a strong liquidity position.
Challenges Ahead
- Ongoing delays from aircraft and engine manufacturers.
- Lower aircraft investments than expected due to manufacturing delays.
- Decline in rental revenues due to sales of older aircraft and purchases of new aircraft with lower initial lease yields.
- Increased interest expense driven by higher cost of funds and outstanding debt balance.
- Reduced gains from aircraft sales.