Air Lease (AL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $738.3 million, with diluted EPS of $3.26, driven by fleet expansion, strong aircraft sales, and significant insurance settlements related to the Russian fleet.

• Net income attributable to common stockholders surged to $364.8 million, boosted by a $332 million insurance settlement benefit.

• Ended quarter with 487 owned aircraft, over $32 billion in total assets, and $29.2 billion in committed future rental payments.

• Maintains one of the youngest fleets in the industry with a 4.7-year average age and 100% utilization in Q1 2025.

• Diversified customer base with 117 airlines in 57 countries, limiting concentration risk.

Financial highlights

• Rental revenue rose 5% year-over-year to $645 million; aircraft sales, trading, and other revenue increased 90% to $92.9 million.

• Sold 16 aircraft for $521 million, generating $61 million in gains (13% margin).

• Interest expense increased to $222.6 million due to higher cost of funds (4.26%).

• Book value per share increased to $62.32, aided by insurance recoveries.

• Liquidity position at $7.4 billion, with $19.9 billion in net debt financing.

Outlook and guidance

• 100% of orderbook through 2026 and 89% through 2027 placed on long-term leases; 58% of orderbook through 2031 placed.

• 2025 aircraft deliveries expected at $3–$3.5 billion, with $800 million in Q2; aircraft sales for 2025 projected at $1.5 billion.

• Portfolio yield expected to trend higher through 2025 and over the next 3–4 years as low-yield leases roll off.

• Delivery delays from Airbus and Boeing expected to persist for at least 3–4 years.

• No change to profitability expectations for 2025.