Air Lease Corp quarterly revenue falls as aircraft delivery delays persist
(Reuters) -Air Lease Corp on Thursday reported lower quarterly revenue despite growing its fleet, due primarily to a decline in end of lease revenue and fewer aircraft returns during the last three months of 2024.
Aircraft lessors are benefiting from high rental revenue as airlines look for aircraft that are in short supply due to supply chain problems, along with lower production levels of Boeing (NYSE: BA )'s 737 MAX and engine snags.
Lessors and airlines are still wrestling with delays in deliveries from major aircraft manufacturers including Boeing and Airbus.
Air Lease (NYSE: AL ) said its revenue in the fourth quarter fell 3.7% to $712.9 million and net income declined to $93 million from $211 million in the same period of 2023, as it also made higher interest payments on funds borrowed to finance aircraft purchases.
But for the full year, the California-based lessor generated record annual revenues, helped by the company's $5 billion in aircraft purchases from its orderbook, and $1.7 billion in aircraft sales, it said.
"Looking forward, we expect lease rates and aircraft valuations to rise, supporting the value of our business," said CEO John Plueger. "We remain optimistic about the ongoing benefits of these trends, given aircraft shortages are anticipated to persist for several years to come."
Plueger told an analyst call that he believed demand for twin-aisle wide-body jets has surged faster than demand for single-aisle planes over the past six months, reversing a post-pandemic trend.