Air Lease Corporation second quarter results impacted by continued OEM delivery delays

Air Lease Corporation (ALC) has seen its second quarter results impacted by continued OEM delivery delays, as the company published results showing a decrease in total revenues and pre-tax income, when compared to results from the same quarter of 2023. ALC saw revenues drop by 0.8% in the quarter from $672.9 million in 2023, to $667.3 million this year. This was made up of $610 million coming from rental revenues, while $57 million came from aircraft sales, trading and other activities. The company’s income before tax also saw a drop when compared to the same period last year, dropping by $36.3 million from $164 million to $127.7 million. “We continue to feel the effects of ongoing delays from the aircraft and engine manufacturers,” said John Plueger, CEO and president, and Steven Udvar-Házy, executive chairman of the board. They continued: “We remain confident and optimistic about the value of our fleet, as seen through our aircraft sales initiatives. There is significant value in our orderbook based on our view of long-term aircraft demand and fundamental passenger traffic trends,” Within the quarterly report, net income attributable to common stockholders saw a decrease of 25.9% from $122 million in the second quarter of 2023 to $90.4 million this year. ALC’s CEO, John Plueger added: “We (ALC) purchased 13 new aircraft from our order book in the second quarter, adding $940 million in flight equipment to our balance sheet, and we sold 11 aircraft for approximately $530 million in sales proceeds. Deliveries came in $600 million below our expectations” Plueger continued:” Despite the recent delivery delays impacting our second quarter, we are maintaining our view that aircraft deliveries for us will fall in the $4.5 billion to $5.5 billion range for the full year 2024, and we're expecting aircraft deliveries for the third quarter to be approximately $2 billion.” Looking past the quarter, ALC expect to close $1.5 billion in total sales for this year, with $600 million of flight equipment held for sale and $900 million worth of aircraft, which is subject to letters of intent.