Air Lease Corporation reported a $118.3 million first-quarter 2023 (Q1 2023) profit and $636.1 million in revenue, the latter a 6% increase year-on-year "primarily driven by the continued growth in our fleet".
The Q1 2023 net income was a 500%+ increase on the Q1 2022 net loss of almost $480 million, the lessor reported, and amounted to $1.06 per diluted share.
The increase "was due to the growth of our fleet and the effect of the write-off of our Russian fleet in the first quarter of 2022", ALC reported, but was "partially offset by an increase in interest expense due to the increases in our composite cost of funds, aircraft transition costs and insurance expense in the current year period".
Adjusted net income came to $166.8 million, or $1.50 per share, as compared to $200.9 million or $1.76 per adjusted diluted share for Q1 2022, with the difference "mainly driven by lower end of lease revenue" as well as "an increase in interest expense, aircraft transition costs and insurance expense".
ALC recognised $34.7 million in end of lease revenue from lease terminations as compared to approximately $59.6 million in end of lease revenue from the termination of our leasing activities in Russia in Q1 2022.
At the end of Q1 2023, ALC's fleet was valued at $25.7 billion, up $1.2bn on the end of Q4 2022. The company had a fleet of 323 narrowbody aircraft and 114 widebody aircraft, as well as 86 managed aircraft, spread across 118 airlines in 65 countries The weighted average fleet age and weighted average remaining lease term was 4.5 years and 7.1 years.
“We’re pleased to report strong first quarter 2023 results, which benefitted from robust fleet growth," said John L. Plueger, chief executive and president, and Steven F. Udvar-Házy, executive chairman of the board, in a joint statement.
"Global air travel demand continues to expand meaningfully with healthy airline yields, while aircraft capacity remains constrained. The need for new fuel-efficient commercial aircraft continues to rise, bolstering the value of our orderbook positions and existing fleet. While our deliveries exceeded expectations this quarter, we do foresee OEM delivery delays persisting for several years ahead,” they said,