Air Lease Corporation (ALC) has announced sound financial results for the three and nine months ended September 30, 2022.
ALC’s total revenues for the three months to the end September 30, 2022 increased by 7.0% to $561.3 million compared to the prior-year quarter. The increase in total revenues was primarily driven by the continued growth in the fleet, significantly lower lease restructuring losses and higher aircraft sales, trading and other revenue, offset by the loss of rental revenue from the termination of our leasing activities in Russia and cash basis accounting.
ALC stated that the increase in aircraft sales, trading and other revenue was primarily due to $11.6 million in gains from the sale of one aircraft and four sales-type lease transactions for the three months ended September 30, 2022. The lessor’s net income attributable to common stockholders for the three months ended September 30, 2022 was $100.0 million, or $0.90 per diluted share compared to $100.0 million, or $0.87 per diluted share, for the three months ended September 30, 2021. ALC recorded adjusted net income before income taxes during the quarter of $146.3 million or $1.32 per adjusted diluted share as compared to $146.5 million or $1.28 per adjusted diluted share for the prior year period. Net income attributable to common stockholders and adjusted net income before income taxes remained in-line with the prior year period, primarily due to increases in interest, depreciation and selling, general and administrative expenses which partially offset the revenue increases discussed above.
“Global passenger traffic, along with airline revenue trends and yields, remain on a solid recovery path with little sign of abatement despite global economic and geopolitical factors. Lease demand continues to accelerate, and we are in a good position looking forward with our valuable remaining delivery positions,” said John L. Plueger, Chief Executive Officer and President.
As of September 30, 2022, ALC’s net book value increased to $23.9 billion, compared to $22.9 billion as of December 31, 2021. ALC owns 405 aircraft in its aircraft portfolio, comprised of 297 narrowbody aircraft and 108 widebody aircraft, and the company manages 87 aircraft. The weighted average fleet age and weighted average remaining lease term of the ALC fleet was 4.5 years and 7.0 years, respectively.
ALC increased its quarterly cash dividend by approximately 8.1%, from $0.185 per share to $0.20 per share of its outstanding Class A common stock. The next quarterly dividend of $0.20 per share will be paid on January 10, 2023.
“Our strong balance sheet, young fleet, and attractive order book are once again proving to be the right combination in today’s world for our airline customers. Reflecting this confidence, I am pleased to announce that our Board of Directors has authorized an increase in our quarterly common stock dividend to $0.20 per share, representing the 10th increase and 40th consecutive dividend payment since the founding of ALC,” said Steven F. Udvar-Házy, Executive Chairman of the Board.
Also during the quarter, ALC took delivery of 14 aircraft from its new order pipeline, representing $843 million in aircraft investments, ending the period with over $28 billion in total assets. The lessor has placed 99% of its contracted orderbook positions on long-term leases for aircraft delivering through the end of 2023 and has placed 58% of its entire orderbook.