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Updated June 27, 2022

  • Joe Breitfeller

ALC Reports Second Quarter Net Income of $86 Million on Six Percent Revenue Decline to $492 Million

Air Lease Corporation has reported a second quarter net income of $86 million or $0.75 per diluted share on a year-over-year decline in revenue of 5.7 percent to $492 million. On June 30, 2021, the company had $7.6 billion in available liquidity.


ALC Reports Second Quarter 2021 Financial Results - Courtesy Air Lease Corporation

On Thursday (August 5, 2021), Air Lease Corporation (ALC) reported their second quarter financial results for the period ending June 30, 2021. The aircraft lessor reported a second quarter income of $86 million or $0.75 per diluted share on a year-over-year decline in revenue of 5.7 percent to $492 million. During the quarter, ALC took delivery of 12 aircraft from their order book, representing a $971 million investment. The company ended the second quarter with 354 aircraft in their operating portfolio with a net book value of $21.5 billion, a weighted average age of 4.3 years and a weighted average remaining lease term of 6.9 years. On June 30, 2021, ALC had liquidity totaling approximately $7.6 billion.


In Thursday’s announcement, Air Lease Corporation’s President and Chief Executive Officer, John L. Plueger, said,


“On an overall global scale, the airline industry is improving. Passenger traffic is staging a robust recovery in the U.S.A., Mexico, China, Russia, and most of Europe, with international and long haul traffic at a much slower recovery rate. Outside of China, Asia overall lags in traffic recovery and vaccination rates. Although we still face some customer and OEM challenges in the near term, our operating cash flow continues to strengthen. Lease placements from our fleet and orderbook are accelerating as airlines view recovery and the desirability of fleet transformation to enhance operating economics and environmental sustainability.”


ALC’s Executive Chairman of the Board, Steven F. Udvar-Házy, added,


“Pent up demand is resulting in rapid and strong recovery when and where travel restrictions are lifted. Accordingly, we are focusing our leasing efforts on the most rapidly recovering regions, such as growing our U.S.A. book of business, where we see more potential ahead. Canada opening its borders should provide a further stimulant to North America, while we anticipate trans-Atlantic traffic recovery in the near future. Strong freight and e-commerce demand is aiding airline recovery globally, which is particularly beneficial for our widebody customers in Asia and Europe. We continue to see a bright future for ALC in providing for the growing demands of commercial aviation.”


ALC closed the quarter with 93 percent of their contracted order book placed on long-term leases for aircraft deliveries through the end of 2022 and 80 percent through 2023. The company ended the second quarter with $27.1 billion in committed future minimum rental payments, including $14.3 billion for existing fleet aircraft and $12.8 billion related to aircraft on order. To date, 52 percent of lease deferrals related to the pandemic have been repaid for $126.9 million. During Q2, the company also issued $1.8 billion in aggregate Medium-Term notes with $1.2 billion at a fixed rate of 1.875% due 2026, and $600 million at a floating rate of three-month LIBOR plus 0.35% due 2022. Additionally, ALC declared a Class A stock dividend for the second quarter of $0.16/share, payable October 8, 2021, to holders of record as of September 10, 2021.


ALC's Fleet Subject to Operating Leases as of June 30, 2021 - Courtesy Air Lease Corporation

The company ended the second quarter with total debt financing, net of discounts and insurance costs, of $16.5 billion and a debt to equity ratio of 2.54:1 and available liquidity of $7.6 billion.


Based in Los Angeles, California, Air Lease Corporation (NYSE: AL) is a leading global aircraft leasing company. The ALC team is principally involved in the purchase of commercial aircraft and leasing them to airlines worldwide with customized leasing and financing solutions.


In trading Friday afternoon (8/6/21), shares in Air Lease Corporation (NYSE: AL) were 2.82% lower at $42.02/share (1:16 PM EDT).



Source: Air Lease Corporation