Air Lease (AL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached $690.2 million, with diluted EPS of $0.82, driven by fleet expansion and strong lease rates, but net income declined due to higher interest expense.

• Ended Q3 2024 with 485 owned and 64 managed aircraft, 287 on order, and a young fleet averaging 4.6 years with 100% utilization.

• Total assets reached $32.2 billion, with $18.2 billion in aircraft purchase commitments and $29.7 billion in committed minimum future rental payments.

• 95% of the orderbook through 2026 is placed on long-term leases, and the forward order book is fully placed through 2026.

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

Financial highlights

• Q3 2024 revenues rose 4.7% year-over-year to $690.2 million, with $625 million from rental and $65 million from sales and other activities.

• Net income attributable to common stockholders was $91.6 million for Q3 2024, down from $122.0 million in Q3 2023, mainly due to higher interest expense.

• Adjusted net income before income taxes for Q3 2024 was $140.2 million ($1.25 per adjusted diluted share), down from $177.0 million ($1.59) in Q3 2023.

• $340 million in sales proceeds from 9 aircraft, generating $42 million in gains (14% margin).

• Liquidity at quarter-end was $7.5 billion, including $460.8 million in cash and $6.5 billion in undrawn revolving credit.

Outlook and guidance

• Committed to purchase 287 aircraft through 2029, with $18.2 billion in aggregate commitments; 100% of aircraft delivering through 2025 and 95% through 2026 are placed.

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

• Full-year aircraft sales expected to reach $1.5 billion, in line with guidance.

• Ongoing delivery delays from Airbus and Boeing, including impacts from the Boeing labor strike, are expected to continue for at least 3-4 years.

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