On August 1, 2024, Air Lease Corp (AL, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Air Lease Corp is an aircraft leasing company based in the United States, deriving its revenue primarily from the Asia region. The company purchases aircraft from manufacturers like Boeing and Airbus and leases them to airlines worldwide.
Performance Overview
For the second quarter of 2024, Air Lease Corp reported revenues of $667.3 million, a slight decrease from $672.9 million in the same period last year, representing a 0.8% decline. The company also reported a net income attributable to common stockholders of $90.4 million, or $0.81 per diluted share, down from $122.0 million, or $1.10 per diluted share, in Q2 2023. This performance fell short of analyst estimates, which had projected earnings per share of $0.91 and revenue of $684.97 million.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Revenue | $667.3 million | $672.9 million | -0.8% |
| Net Income | $90.4 million | $122.0 million | -25.9% |
| Diluted EPS | $0.81 | $1.10 | -26.4% |
Challenges and Achievements
Air Lease Corp continues to face challenges due to ongoing delays from aircraft and engine manufacturers. Despite these hurdles, the company remains optimistic about the value of its fleet and orderbook. The company took delivery of 13 aircraft from its orderbook, representing approximately $940 million in aircraft investments, and sold 11 aircraft for approximately $530 million in sales proceeds during the quarter.
“We continue to feel the effects of ongoing delays from the aircraft and engine manufacturers. We remain confident and optimistic about the value of our fleet, as seen through our aircraft sales initiatives,” said John L. Plueger, Chief Executive Officer and President, and Steven F. Udvar-Házy, Executive Chairman of the Board.
Financial Highlights
Despite the challenges, Air Lease Corp ended the quarter with $30.0 billion in committed minimum future rental payments. The company also issued $1.2 billion in aggregate principal amount of Medium-Term Notes during the quarter. Additionally, the board of directors declared a quarterly cash dividend of $0.21 per share on the outstanding Class A common stock.
Income Statement and Balance Sheet
Operating expenses for the quarter increased by 6.0% to $539.5 million, compared to $509.0 million in Q2 2023. Income before taxes decreased by 22.1% to $127.7 million. The net book value of the fleet increased to $26.8 billion as of June 30, 2024, up from $26.2 billion as of December 31, 2023.
Debt and Liquidity
Air Lease Corp ended the second quarter with total debt financing of $19.7 billion, with 88.3% of the debt at a fixed rate. The company’s composite cost of funds was 3.99%, and it had total liquidity of $8.2 billion.
Conclusion
While Air Lease Corp faced significant challenges in Q2 2024, including manufacturing delays and increased interest expenses, the company remains optimistic about its long-term prospects. The financial results highlight the resilience of its business model and the strategic importance of its fleet and orderbook.
Explore the complete 8-K earnings release (here) from Air Lease Corp for further details.
