Air Lease Corporation has reported that revenues increased U$17 million or 4.4% to US$398 million for the three months ended June 30, 2018 from US$381 million for the three months ended June 30, 2017. This increase was principally driven by the increase in the net book value of its fleet, partially offset by a reduction of sales and trading activity. For the three months ended June 30, 2017, Air Lease Corporation has sold 17 aircraft, generating US$18 million in gains, and for the three months ended June 30, 2018, the company chose not to sell any aircraft.
Income before taxes for the quarter ended June 30, 2018 was US$147 million compared to US$156 million for the quarter ended June 30, 2017. As ALC chose not sell any aircraft in the second quarter of 2018, income before taxes decreased compared to the second quarter of 2017.
Net income for the quarter increased to US$115 million, compared to US$101 million for the quarter ended June 30, 2017. The increase in net income in the second quarter of 2018 as compared to 2017 was primarily due to a lower income tax expense as a result of the U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”), which, among other things, lowered the corporate tax rate from 35% to 21% effective January 1, 2018.
Adjusted net income before income taxes for the three months was US$160 million, compared to US$167 million for the three months ended June 30, 2017. The change in adjusted net income before income taxes was due to the decrease in the number of aircraft sold from 17 aircraft for the three months ended June 30, 2017 to zero aircraft for the three months ended June 30, 2018.
ALC’s fleet grew by 11.9% to a net book value of US$14.9 billion as of June 30, 2018 compared to US$13.3 billion as of December 31, 2017. As of June 30, 2018, our fleet was comprised of 271 owned aircraft, with a weighted-average age and remaining lease term of 3.8 years and 6.8 years, respectively, and 49 managed aircraft. Air Lease Corporation has a globally diversified customer base of 93 airlines in 56 countries.
During the quarter the company took delivery of 14 aircraft from its order book and four incremental aircraft from the secondary market ending the quarter with 271 aircraft in its operating lease portfolio.
