Air Lease (AL) Q4 2024 earnings summary

Executive summary

• Achieved record revenues in 2024, with Q4 revenue at $713 million and full-year revenue at $2.73 billion, driven by $5 billion in aircraft purchases and $1.7 billion in aircraft sales.

• Ended 2024 with 489 owned and 60 managed aircraft, $32.3 billion in total assets, and $29.5 billion in committed minimum future rental payments.

• Maintains one of the youngest fleets in the industry with an average age of 4.6 years and a 100% utilization rate in Q4 2024.

• 100% of orderbook through 2026 and 85% through 2027 are placed on long-term leases, providing strong forward visibility.

• Aircraft shortages and high demand are supporting higher lease rates and aircraft valuations.

Financial highlights

• Q4 2024 revenue: $713 million, including $639 million rental revenue and $74 million from sales and other activities.

• Full-year 2024 revenue: $2.73 billion (up 1.8% YoY); adjusted net income before taxes: $574 million.

• Q4 net income attributable to common stockholders: $93 million ($0.83/diluted share); FY net income: $372 million ($3.33/diluted share).

• Liquidity at year-end: $8.1 billion, with $0.5 billion in cash and $7.6 billion in undrawn revolver.

• Net book value of flight equipment subject to operating lease: $28.2 billion at year-end.

Outlook and guidance

• Expects to purchase $3.0–$3.5 billion in aircraft in 2025, with $800 million in Q1.

• 100% of expected orderbook deliveries through 2026 are placed on long-term leases.

• $1.1 billion in aircraft sales pipeline, including $1.0 billion in flight equipment held for sale.

• Lease yields expected to rise steadily as COVID-era leases roll off, but adjusted margins in 2025 anticipated to remain at 2024 levels due to elevated interest rates.

• Orderbook of 269 aircraft from Boeing and Airbus for delivery through 2029, with $17.1 billion aggregate commitment.