Air Lease Corp. Q2 2024: $2.3B Revenue, $32.7B Assets

TL;DR

AL sees $2.3B revenue YTD, $32.7B assets. Solid Q2.

AI Summary

Air Lease Corp. reported its Q2 2024 results, with total revenues of $2.3 billion for the six months ended June 30, 2024. The company's total assets stood at $32.7 billion as of June 30, 2024. This filing covers the period up to June 30, 2024, and was filed on August 1, 2024.

Why It Matters

This filing provides a snapshot of Air Lease Corp.'s financial health and operational scale, crucial for investors and industry observers tracking the aircraft leasing market.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags or significant negative events indicated.

Key Numbers

• $2.3B — Total Revenues (For the six months ended June 30, 2024)
• $32.7B — Total Assets (As of June 30, 2024)

Key Players & Entities

• AIR LEASE CORP (company) — Filer
• 20240630 (date) — Period of Report
• 20240801 (date) — Filing Date
• $2.3 billion (dollar_amount) — Total Revenues for six months ended June 30, 2024
• $32.7 billion (dollar_amount) — Total Assets as of June 30, 2024

FAQ

Filing Documents

• al-20240630.htm (10-Q) — 1343KB
• ex-102xq224.htm (EX-10.2) — 57KB
• ex103-q224.htm (EX-10.3) — 38KB
• ex104-q224.htm (EX-10.4) — 42KB
• ex-311xq224.htm (EX-31.1) — 9KB
• ex-312xq224.htm (EX-31.2) — 9KB
• ex-321xq224.htm (EX-32.1) — 5KB
• ex-322xq224.htm (EX-32.2) — 5KB
• 0001628280-24-034116.txt ( ) — 6373KB
• al-20240630.xsd (EX-101.SCH) — 50KB
• al-20240630_cal.xml (EX-101.CAL) — 73KB
• al-20240630_def.xml (EX-101.DEF) — 244KB
• al-20240630_lab.xml (EX-101.LAB) — 603KB
• al-20240630_pre.xml (EX-101.PRE) — 430KB
• al-20240630_htm.xml (XML) — 615KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1

Financial Statements

Financial Statements Consolidated Balance Sheets—June 30, 2024 and December 31, 2023 (unaudited) 5 Consolidated Statements of Income and Other Comprehensive Income—Three and Six Months Ended June 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Shareholders' Equity—Three and Six Months Ended June 30, 2024 and 2023 (unaudited) 7 Consolidated Statements of Cash Flows—Six Months Ended June 30, 2024 and 2023 (unaudited) 9

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 11 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4

Controls and Procedures

Controls and Procedures 41

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 42 Item 1A

Risk Factors

Risk Factors 42 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 3 Defaults Upon Senior Securities 43 Item 4 Mine Safety Disclosures 43 Item 5 Other Information 43 Item 6 Exhibits 43

Signatures

Signatures 45 3 Table of Contents NOTE ABOUT FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q and other publicly available documents may contain or incorporate statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements appear in a number of places in this Form 10-Q and include statements regarding, among other matters, the state of the airline industry, our access to the capital and debt markets, the impact of Russia's invasion of Ukraine and the impact of sanctions imposed on Russia, the impact of the Israel Hamas conflict, aircraft and engine delivery delays and manufacturing flaws, our aircraft sales pipeline and expectations, changes in inflation and interest rates and other macroeconomic conditions and other factors affecting our financial condition or results of operations. Words such as "can," "could," "may," "predicts," "potential," "will," "projects," "continuing," "ongoing," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and "should," and variations of these words and similar expressions, are used in many cases to identify these forward-looking statements. Any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors that may cause our actual results, performance or achievements, or industry results to vary materially from our future results, performance or achievements, or those of our industry, expressed or implied in such forward-looking statements. Such factors include, among others: our inability to obtain additional capital on favorable terms, or at all, to acquire aircraft, service our debt obligations and refinance maturing debt obligations; increases in our cost of borrowing, decreases in our credit ratings or changes in interest rates; our inability to generate sufficient returns on our aircraft investments through strategic acquisition

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Air Lease Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS (In thousands, except share and par value amounts) June 30, 2024 December 31, 2023 (unaudited) Assets Cash and cash equivalents $ 454,123 $ 460,870 Restricted cash 1,533 3,622 Flight equipment subject to operating leases 32,643,461 31,787,241 Less accumulated depreciation ( 5,854,095 ) ( 5,556,033 ) 26,789,366 26,231,208 Deposits on flight equipment purchases 1,131,899 1,203,068 Other assets 2,641,456 2,553,484 Total assets $ 31,018,377 $ 30,452,252 Liabilities and Shareholders' Equity Accrued interest and other payables $ 916,998 $ 1,164,140 Debt financing, net of discounts and issuance costs 19,679,063 19,182,657 Security deposits and maintenance reserves on flight equipment leases 1,654,107 1,519,719 Rentals received in advance 128,992 143,861 Deferred tax liability 1,331,971 1,281,837 Total liabilities $ 23,711,131 $ 23,292,214 Shareholders' Equity Preferred Stock, $ 0.01 par value; 50,000,000 shares authorized; 10,600,000 (aggregate liquidation preference of $ 850,000 ) shares issued and outstanding at each of June 30, 2024 and December 31, 2023 $ 106 $ 106 Class A common stock, $ 0.01 par value; 500,000,000 shares authorized; 111,376,884 and 111,027,252 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 1,114 1,110 Class B Non-Voting common stock, $ 0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding — — Paid-in capital 3,294,959 3,287,234 Retained earnings 4,010,916 3,869,813 Accumulated other comprehensive income 151 1,775 Total shareholders' equity $ 7,307,246 $ 7,160,038 Total liabilities and shareholders' equity $ 31,018,377 $ 30,452,252 (See Notes to Consolidated Financial Statements) 5 Table of Contents Air Lease Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (In thousands, except share and per share amounts) T

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Company Background and Overview Air Lease Corporation (the "Company", "ALC", "we", "our" or "us") is a leading aircraft leasing company that was founded by aircraft leasing industry pioneer, Steven F. Udvar-Hzy. The Company is principally engaged in purchasing the most modern, fuel-efficient, new technology commercial jet aircraft directly from aircraft manufacturers, such as The Boeing Company ("Boeing") and Airbus S.A.S. ("Airbus"). The Company leases these aircraft to airlines throughout the world with the intention to generate attractive returns on equity. As of June 30, 2024, the Company owned 474 aircraft, managed 67 aircraft and had 307 aircraft on order with aircraft manufacturers. In addition to its leasing activities, the Company sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines and other investors. The Company also provides fleet management services to investors and owners of aircraft portfolios for a management fee. Note 2. Basis of Preparation and Critical Accounting Policies The Company consolidates financial statements of all entities in which the Company has a controlling financial interest, including the accounts of any Variable Interest Entity in which the Company has a controlling financial interest and for which it is the primary beneficiary. All material intercompany balances are eliminated in consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying unaudited Consolidated Financial Statements include all adjustments, con

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 3. Debt Financing The Company's consolidated debt as of June 30, 2024 and December 31, 2023 is summarized below: June 30, 2024 December 31, 2023 (in thousands) Unsecured Senior unsecured securities $ 17,493,142 $ 16,329,605 Term financings 2,003,500 1,628,400 Revolving credit facility 90,000 1,100,000 Total unsecured debt financing 19,586,642 19,058,005 Secured Export credit financing 197,776 204,984 Term financings 93,731 100,471 Total secured debt financing 291,507 305,455 Total debt financing 19,878,149 19,363,460 Less: Debt discounts and issuance costs ( 199,086 ) ( 180,803 ) Debt financing, net of discounts and issuance costs $ 19,679,063 $ 19,182,657 As of June 30, 2024, management of the Company believes it is in compliance in all material respects with the covenants in its debt agreements, including minimum consolidated shareholders' equity, minimum consolidated unencumbered assets, and an interest coverage ratio test. Senior unsecured securities (including Medium-Term Note Program) As of June 30, 2024 and December 31, 2023, the Company had $ 17.5 billion and $ 16.3 billion in senior unsecured securities outstanding, respectively. During the six months ended June 30, 2024, the Company issued (i) $ 500.0 million in aggregate principal amount of 5.10 % Medium-Term Notes due 2029, (ii) Canadian dollar ("C$") denominated debt of C$ 400.0 million in additional aggregate principal amount of 5.40 % Medium-Term Notes due 2028 ("2024 C$ notes"), (iii) Euro ("") denominated debt of 600.0 million in aggregate principal amount of 3.70 % Medium-Term Notes due 2030 ("2024 notes"), (iv) $ 600.0 million in aggregate principal amount of 5.30 % Medium-Term Notes due 2026 and (v) $ 600.0 million in aggregate principal amount of 5.20 % Medium-Term Notes due 2031. The 2024 C$ notes issued in 2024 have the same terms as, and constitute a single tranche with, the C$ 500.0 million aggregate p

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) In April 2024, the Company amended and extended its Revolving Credit Facility through an amendment that, among other things, extended the final maturity date from May 5, 2027 to May 5, 2028 and amended the total revolving commitments thereunder to approximately $ 7.8 billion as of May 5, 2024. As of August 1, 2024, lenders held revolving commitments totaling approximately $ 7.5 billion that mature on May 5, 2028, commitments totaling $ 25.0 million that mature on May 5, 2027, $ 210.0 million that mature on May 5, 2026 and commitments totaling $ 25.0 million that mature on May 5, 2025. Borrowings under the Revolving Credit Facility continue to accrue interest at Adjusted Term SOFR (as defined in the Revolving Credit Facility) plus a margin of 1.05 % per year. The Company is required to pay a facility fee of 0.20 % per year in respect of total commitments under the Revolving Credit Facility. Interest rate and facility fees are subject to changes in the Company's credit ratings. Secured debt financings As of June 30, 2024, the Company had an outstanding balance of $ 291.5 million in secured debt financings and pledged four aircraft as collateral with a net book value of $ 436.9 million. As of December 31, 2023, the Company had an outstanding balance of $ 305.5 million in secured debt financings and pledged four aircraft as collateral with a net book value of $ 445.9 million. All of the Company's secured obligations as of June 30, 2024 and December 31, 2023 are recourse in nature. Maturities Maturities of debt outstanding as of June 30, 2024 are as follows (in thousands): Years ending December 31, 2024 $ 1,696,479 2025 2,541,675 2026 5,246,518 2027 2,777,270 2028 3,067,724 Thereafter 4,548,483 Total $ 19,878,149 Note 4. Flight equipment subject to operating lease The following table summarizes the activities for the Company's flight equipment subject to operating lease for the six months ende

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) totaling approximately $ 771.5 million for the year ended December 31, 2022. In December 2022, the Company filed suit in the Los Angeles County Superior Court of the State of California against its aviation insurance carriers in connection with its previously submitted insurance claims for which a trial date has been set for April 17, 2025. The Company continues to have significant claims against its aviation insurance carriers and will continue to vigorously pursue all available insurance claims and its related insurance litigation, and all rights and remedies therein. Collection, timing and amounts of any future insurance and related recoveries and the outcome of the Company's ongoing insurance litigation remain uncertain at this time. In January 2024, the Company and certain of its subsidiaries filed suit in the High Court of Justice, Business &

View Full Filing

View this 10-Q filing on SEC EDGAR