Air Lease Corporation (ALC) announced its financial results for the first half on August 9. ALC took delivery of 14 aircraft from its order book in the second quarter, as well as four “young” aircraft from the secondary market representing $1.4 billion in capital expenditures, overall. The lessor ended the second quarter with $14.9 billion in aircraft with a weighted average age of 3.8 years and average lease term of 6.8 years remaining.
Revenues for the first six calendar months totaled $779 million (up 5.1 percent) with $398 million coming in Q2, an increase of 4.4 percent year-over-year. Diluted earnings per share totaled $2.04 for the first half (up 20.7 percent) and $1.04 for Q2 (up 13 percent). Adjusted pretax margin was pegged at 40.3 percent for Q2; while adjusted pretax return on equity for the 12 months leading up to June 30 was 16.7 percent.
ALC aircraft on order are 100 percent placed through 2019; 87 percent placed through 2020; and 66 percent through 2021 on long-term leases. At the Farnborough Airshow in July, the company signed an agreement for up to 78 Boeing airliners, including seventy-five 737-8 Max models and three 787-9s.
John Plueger, ALC president and CEO, said, “We continue to execute our plan to increase capital deployment by adding young aircraft incremental to our order book deliveries. We also launched Thunderbolt II, a uniquely structured and highly successful portfolio sale of 18 aircraft, which priced and closed subsequent to quarter end.”
Steven Udvar-Házy, executive chairman of the board, said, “The order we placed at the Farnborough Air Show provides us with access to valuable delivery positions through 2024.”