Air Lease Corporation (ALC) has posted its financial results for the second quarter ended June 30, 2019.
ALC took delivery of 16 aircraft from its order book and one aircraft from the secondary market during the quarter, representing approximately US$1.6 billion in aircraft investments, ending the quarter with an operating portfolio net book value of US$17.8 billion with a weighted average age of 3.7 years and a weighted average lease term remaining of 7.2 years. The company placed 97% of its order book on long-term leases for aircraft delivering through 2020 and 77% through 2021.
ALC ended the quarter with US$28.7 billion in committed minimum future rental payments consisting of US$13.5 billion in contracted minimum rental payments on the aircraft in its existing fleet and US$15.2 billion in minimum future rental payments related to aircraft on order.
Air Lease Corporation issued approximately US$1.1 billion in aggregate principal amount of Medium-Term Notes comprised of US$750.0 million due 2026 at a fixed rate of 3.75% and US$300.0 million due 2021 that bear interest at a floating rate of three-month LIBOR plus 0.67%.
In June 2019, the company entered into memorandums of understanding 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.
