ALC reports first-quarter 2023 results

Air Lease Corporation’s (ALC) total revenues for the three months ended March 31, 2023, increased by 6.6% to US$636.1 million as compared to the three months ended March 31, 2022. The increase in total revenues was primarily driven by the continued growth in the company’s fleet partially offset by a net decrease in end-of-lease revenue. During the first quarter of 2023, ALC recognized US$34.7 million in end-of-lease revenue from lease terminations as compared to approximately US$59.6 million in end-of-lease revenue from the termination of its leasing activities in Russia in the prior-year period.

Net income attributable to common stockholders for the three months ended March 31, 2023, was US$118.3 million, compared to a net loss of US$479.4 million for the three months ended March 31, 2022. The increase was due to the growth of the fleet and the effect of the write-off of its Russian fleet in the first quarter of 2022. The increase was partially offset by an increase in interest expense due to the increases in our composite cost of funds, aircraft transition costs and insurance
expense in the current year period.

Adjusted net income before income taxes during the three months was US$166.8 million, as compared to US$200.9 million for the previous year period. Despite the continued growth of the fleet, the decrease in adjusted net income before income taxes for the three months as compared to 2022 was mainly driven by lower end-of- lease revenue recognized and an increase in interest expense, aircraft transition costs and insurance expense.

As of March 31, 2023, the net book value of the company’s fleet increased to US$25.7 billion, compared to US$24.5 billion as of December 31, 2022. As of March 31, 2023, ALC owned 437 aircraft in its aircraft portfolio, comprised of 323 narrow-body aircraft and 114 wide-body aircraft and the company managed 86 aircraft. The weighted average fleet age and weighted average remaining lease term of the fleet as of March 31, 2023 was 4.5 years and 7.1 years, respectively. The company had a globally diversified customer base of 118 airlines in 63 countries as of March 31, 2023.