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Dec 31, 2024
ALC Q4 2024 Earnings Report
Air Lease Corporation reported a decline in earnings despite stable revenue.
Key Takeaways
Air Lease Corporation's Q4 2024 revenue remained stable, but net income and EPS saw significant declines due to higher interest expenses and lower end-of-lease revenue. The company continued expanding its fleet, adding 18 new aircraft and selling 14. Lease rates and aircraft valuations are expected to rise, supporting future growth.
Revenue decreased slightly by 0.51% YoY to $712,895,000.
Net income declined by 56.08% YoY due to increased interest expenses.
Adjusted EPS fell 30.21% YoY, reflecting lower profitability.
Company added 18 new aircraft, expanding its fleet to 489 units.
Forward Guidance
Air Lease Corporation expects higher lease rates and aircraft valuations, supported by a strong order backlog. However, rising interest expenses and potential supply chain challenges could impact profitability.
Positive Outlook
- Lease rates and aircraft valuations expected to rise.
- Strong demand for new aircraft leasing amid continued supply shortages.
- 100% of orderbook placed on long-term leases through 2026.
- 85% of orderbook placed on long-term leases through 2027.
- Aircraft sales pipeline valued at $1.1 billion.
Challenges Ahead
- Higher interest expenses could continue impacting profitability.
- Ongoing aircraft and engine delivery delays may affect fleet growth.
- Potential macroeconomic headwinds could pressure lease rates.
- Increased financing costs due to rising composite cost of funds.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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