Air Lease (AL) J.P. Morgan Industrials Conference 2025 summary

Market overview and business fundamentals

• Asset base totals $32.2 billion, with $17.1 billion in aircraft commitments and a fleet of 818 aircraft owned, managed, and on order.

• $30 billion in committed lease rentals exceeds $20 billion in debt, with $8.1 billion in liquidity.

• 97% of debt is unsecured, and 80% is fixed rate; investment-grade ratings from S&P, Fitch, and Kroll.

• 100% aircraft utilization rate in 2024, expected to continue through 2026; average fleet age is 4.6 years.

• 100% of expected orderbook deliveries through 2026 are placed on long-term leases; 62% of the orderbook through 2029 is placed.

Financial performance and portfolio strategy

• Cash flow from operations reached $1.7 billion in the past year, with strengthening trends.

• Sales margins averaged over 11% in recent years, with a 14% margin in Q4 and an 11.4% average gain on sale over the past three years.

• Targeting a 2.5:1 debt-to-equity ratio, expected to be achieved before year-end.

• Portfolio yield is expected to improve by 150-200 basis points over four years, driven by new deliveries, lease extensions, and roll-off of low-yielding aircraft.

• Expects to sell approximately $1.5 billion in aircraft in 2025, supporting capital flexibility and funding needs.

Market dynamics and industry trends

• Demand for aircraft exceeds supply, with strong lease extension rates and higher lease rates on renewals.

• Lease yields are improving for both new placements and extensions, with Q4 2024 seeing the highest delivery yield in over four years.

• Aircraft ordered during COVID at attractive prices, with significant embedded value in both the fleet and order book.

• New aircraft are favored in the market, benefiting lessors with young, technologically advanced fleets.

• Secular tailwinds such as a growing middle class and consumer preference for experiences continue to drive long-term demand for aircraft leasing.