Air Lease (AL) Q3 2024 earnings summary

Executive summary

• Ended Q3 2024 with 485 owned and 64 managed aircraft, $32.2 billion in assets, and $18.2 billion in aircraft purchase commitments, with a young fleet averaging 4.6 years and 100% utilization.

• Q3 2024 revenues reached $690.2 million, driven by fleet expansion and strong lease rates, though net income attributable to common stockholders fell to $91.6 million ($0.82 per diluted share) due to higher interest expense.

• 20 new aircraft purchased ($1.9 billion in flight equipment) and 9 aircraft sold for $340 million in Q3 2024; $1.5 billion aircraft sales pipeline.

• Board approved a 5% increase in quarterly dividend to $0.22 per share, effective January 2025.

• Strong global diversification with 117 airline customers in 59 countries, limiting concentration risk.

Financial highlights

• Q3 2024 revenues: $690.2 million (+4.7% year-over-year); rental revenue: $625 million; aircraft sales/trading/other: $65 million.

• Net income attributable to common stockholders: $91.6 million ($0.82 per diluted share), down from $122.0 million ($1.10) in Q3 2023, mainly due to higher interest expense.

• Adjusted net income before income taxes: $140.2 million ($1.25 per adjusted diluted share), down from $177.0 million ($1.59) in Q3 2023.

• Interest expense rose to $217.5 million in Q3 2024 (from $175.5 million in Q3 2023) as cost of funds increased to 4.21%.

• Liquidity at $7.5 billion, including $460.8 million in cash and $6.5 billion in undrawn revolver.

Outlook and guidance

• Committed to purchase 287 aircraft through 2029, with $18.2 billion in aggregate commitments; 100% of deliveries through 2025 and 95% through 2026 are placed on long-term leases.

• Q4 2024 expected deliveries of ~$900 million; full-year 2024 deliveries projected at ~$4.6 billion, within $4.5–$5.5 billion guidance.

• Aircraft supply constraints and OEM delivery delays, including Boeing labor strike, expected to persist for 3–4 years, supporting robust lease rates.

• 2025 guidance to be provided with Q4 results; long-term margin improvement expected as COVID-era leases roll off and rates rise.

• Forward order book provides strategic flexibility and competitive advantage due to high placement rates and delivery positions.