Willis Lease reports record first quarter revenue

Willis Lease Finance Corporation (Willis Lease) has reported record first quarter total revenues of $119.1 million and a record quarterly pre-tax income of $29.9 million. For the three months ended March 31, 2024, core lease rent and maintenance reserve revenues were at an all-time high of $96.8 million, up 26% as compared to $76.7 million in 2023. The growth was predominantly driven by core, recurring lease and maintenance revenues associated with a strong, resurgent aviation marketplace, and airlines leveraging leasing, parts and maintenance capabilities in order to avoid protracted engine shop visits. The company generated a quarterly record of $29.9 million of pre-tax income in the first quarter of 2024, compared to the pre-tax income of $6.8 million in the first quarter of 2023. “Having developed our 145 maintenance and exchange capabilities over the past few years, we have become the partner of choice for airlines looking to avoid or outsource maintenance risk,” said Austin C. Willis, chief executive officer of Willis Lease. ""This strategy has proven effective, particularly in our supply chain constrained environment.” Lease rent revenue of $52.9 million in the first quarter of 2024 was in-line with lease rent revenue of $53.2 million in the first quarter of 2023. Gain on sale of leased equipment was $9.2 million in the first quarter of 2024, reflecting the sale of eight engines. During the reporting period, Willis Lease purchased equipment (including capitalised costs) totalling $62.8 million, which consisted of two aircraft and four engines and other parts and equipment purchased for its lease portfolio. Spare parts and equipment sales decreased to $3.3 million in the first quarter of 2024, compared to $5.1 million in the first quarter of 2023. The decrease in spare parts sales for the three months period was explained by Willis Lease as reflecting ""variations in the timing of sales"". As of March 31, 2024, the company’s lease portfolio was $2,270.4 million, consisting of $2,130.3 million of equipment held in an operating lease portfolio, $97.9 million of notes receivable, $9.2 million of maintenance rights, and $33.0 million of investments in sales-type leases, which represented 337 engines, 14 aircraft, one marine vessel and other leased parts and equipment. “The company performed well in the first quarter of 2024 and is benefiting from the continued maturation of our strategy,” said Brian R. Hole, president of Willis Lease.