Q2 2024 Air Lease Corp Earnings Call Transcript
Key Points
- Air Lease Corp (AL) generated revenues of $667 million and $0.81 in diluted earnings per share for Q2 2024.
- The company purchased 13 new aircraft, adding $940 million in flight equipment to its balance sheet.
- The utilization rate on the fleet remains exceptionally strong at 100%.
- Air Lease Corp (AL) is 100% placed on its forward order book through 2025 and 96% placed through 2026.
- The company has a robust sales pipeline of $1.5 billion, including $600 million of flight equipment held for sale and $900 million of aircraft subject to letters of intent.
- Results were impacted by further OEM delivery delays and lower end-of-lease revenues compared to prior years.
- Deliveries came in $600 million below expectations, affecting revenue growth.
- Interest expense rose by roughly $18 million year-over-year, driven by a 50 basis point increase in the composite cost of funds.
- The company recognized only $2 million in end-of-lease revenue compared to $15 million in the prior period.
- Potential labor strike at Boeing could result in changes to third-quarter delivery expectations, adding uncertainty.
Good afternoon. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Air Lease Corporation Q2 earnings conference call. (Operator Instructions). I will now turn the call over to Mr. Jason Arnold, Head of Investor Relations. Mr. Arnold, you may begin your conference.
Thanks, Audra, and good afternoon, everyone, and welcome to Air Lease Corporation's second quarter 2024 earnings call. This is Jason Arnold, and I'm joined today by Steve Hazy, our Executive Chairman; John Plueger, our Chief Executive Officer and President; and Greg Willis, our Executive Vice President and Chief Financial Officer.
Earlier today, we published our second quarter 2024 results. A copy of our earnings release is available on the investors section of our website at www.airleasecorp.com. This conference call is being webcast and recorded today, Thursday, August 1, 2024, and the
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