ALC posts triple digit 2Q increase

In the three months to June 30, 2012 Air Lease Corp. (ALC) posted a 301% increase in net income to $28 million. Revenues rose by 113% to $158 million.
For the first six months of the year, net income rose by 440% to $55 million, with revenue up by 124% to $290 million.
During this period the lessor increased its pipeline with an order of 100 737-8/9 MAX aircraft and announced two of our largest narrowbody lease placements to date with premier carriers, including 18 new aircraft with China Southern, in its single largest lease transaction, and the placement of 13 new aircraft with Air China.
ALC also lowered its composite cost of funds to 3.84% as of June 30, 2012 compared to 4.05% as of March 31, 2012.
“Our lease placements continue to be in line with our expectations and we are nearing full placement of our new aircraft deliveries through 2015,” ALC chairman and CEO Steven Udvar-Házy said.
ALC president and COO John Plueger added, “Our lease terms have been trending longer, up to 12 years on both widebody and single-aisle aircraft, which locks in strong future rental revenue. Longer leases provide greater earnings visibility and less risk, with a slight tradeoff in future recognition of overhaul revenue for accounting purposes due to a higher number of reimbursable maintenance events that occur during the lease term. All of our leases are performing well. We successfully removed our single A320 from Kingfisher without incurring a credit loss and that aircraft has been re-leased.”
As of June 30, ALC’s fleet age averaged 3.3 years and remaining lease terms averaged seven years.