Air Lease Corporation (ALC) has released that it posted $471 million revenue in its second-quarter 2019 financial results - an increase of 18.5% from the same period last year. The firm revealed its second-quarter consolidated net income stood at $128.3 million, up 11.4% from $115.2 million in the year-ago quarter.
During the quarter, ALC took delivery of 16 aircraft from its order book and one aircraft from the secondary market representing approximately $1.6 billion in aircraft investments. ALC ended 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.
In June, ALC entered into memorandums of understanding agreements with Airbus to launch the A321 XLR aircraft and to order the A220 aircraft. Through these MOUs, ALC has the right to purchase 27 A321 XLR aircraft, 23 A321neo aircraft and 50 A220 aircraft, and has options for an additional 25 A220 aircraft.
In addition, ALC entered into an MOU with Boeing to convert existing purchase orders of 15 737 Max aircraft to five 787-9 aircraft.
The firm says it has 97% of its order book on long-term leases for aircraft delivering through 2020 and 77% through 2021.
It 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.
John L. Plueger, chief executive officer and president, commented: “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."
Executive chairman of the board Steven F. Udvar-Házy revealed that ALC had eclipsed $20 billion in total assets during the second quarter.
He said: “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.