Air Lease Reports $471MM in Revenue for Q2/2019

Air Lease Corporation reported the financial results for the second quarter which ended on June 30, 2019. Reported revenues was $471 million, an increase of 18.5% year over year.

Other earnings for Q2/2019 included:

  • Revenue of $937 million year to date, an increase of 20.3%
  • Diluted earnings per share of $1.10 for the three months ended June 30, 2019, an increase of 5.8%, and $2.33 for the six months ended June 30, 2019, an increase of 14.2%
  • Adjusted diluted earnings per share before income taxes were $1.51 for the three months ended June 30, 2019, an increase of 4.9%, and $3.18 for the six months ended June 30, 2019, an increase of 12.8%
  • Pre-tax profit margin was 34.1% for the three months ended June 30, 2019
  • Adjusted pre-tax profit margin was 36.2% for the three months ended June 30, 2019

Additional second quarter highlights included:

  • Took delivery of 16 aircraft from the company’s order book and one aircraft from the secondary market during the quarter, representing approximately $1.6 billion in aircraft investments, ending the quarter with an operating portfolio net book value of $17.8 billion with a weighted average age of 3.7 years and a weighted average lease term remaining of 7.2 years.
  • Placed 97% of order book on long-term leases for aircraft delivering through 2020 and 77% through 2021.
  • Ended the quarter with $28.7 billion in committed minimum future rental payments consisting of $13.5 billion in contracted minimum rental payments on the aircraft in our existing fleet and $15.2 billion in minimum future rental payments related to aircraft on order.
  • Issued approximately $1.1 billion in aggregate principal amount of medium-term notes comprised of (i) $750.0 million due 2026 at a fixed rate of 3.75% and (ii) $300.0 million due 2021 that bear interest at a floating rate of three-month LIBOR plus 0.67%.
  • In June 2019, Air Lease entered into memorandums of understanding (MOU) with Airbus to launch the A321 XLR aircraft and to order the A220 aircraft. Through these MOUs, the company will have the right to purchase 27 A321 XLR aircraft, 23 A321neo aircraft and 50 A220 aircraft and the option for an additional 25 A220 aircraft. Aire Lease also entered an MOU with Boeing to convert existing purchase orders of 15 737 MAX aircraft to five 787-9 aircraft.
  • Declared a quarterly cash dividend of $0.13 per share on our outstanding Class A common stock on August 8, 2019. The dividend will be paid on October 4, 2019 to holders of record of Class A common stock as of September 15, 2019.

“During the first half of the year we have focused on growing our portfolio, which resulted in a 20% increase in our revenues, despite continued delays from Boeing and Airbus. ALC performance remains strong, with a 34% pre-tax profit margin and 15% pre-tax return on common equity reported in the second quarter. Our industry outlook remains positive, as seen through our robust placement activity and recent orders at the Paris Air Show,” said John L. Plueger, Air Lease president and CEO.

“ALC eclipsed $20 billion in total assets during the second quarter, and I am also excited to report that in July we delivered the 300th aircraft in our fleet. Our asset base has doubled in just five years and looking forward, we remain very positive on our strong growth outlook,” said Steven F. Udvar-Házy, executive chairman of the Board.

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