Air Lease Activity Update for the First Quarter of 2025

Rhea-AI Summary

Air Lease (NYSE: AL) reported its Q1 2025 fleet activities, highlighting significant aircraft investments and sales. The company's fleet comprised 487 owned and 57 managed aircraft, with 255 new aircraft on order from Airbus and Boeing for delivery through 2029.

Key Q1 2025 highlights include:

• Delivered 14 new aircraft from orderbook (4 Airbus A220s, 8 Boeing 737-8s, 1 Boeing 737-9, and 1 Boeing 787-10)
• Aircraft investments totaled approximately $800 million
• Sold 16 aircraft to third-party buyers, generating proceeds of approximately $520 million
• Received $328.5 million in cash insurance settlement proceeds related to Russia fleet

Positive

• Strong aircraft investment activity with $800 million in new deliveries
• Successful monetization of assets with $520 million in aircraft sales
• Received significant insurance settlement of $328.5 million for Russia fleet
• Robust order book with 255 new aircraft scheduled through 2029
• Maintained large fleet size of 544 aircraft (487 owned + 57 managed)

Negative

• High aircraft turnover with 16 aircraft sales might indicate portfolio rebalancing needs
• Insurance settlement implies previous losses from Russian market exposure

Insights

Financial Analyst

Air Lease's Q1 2025 activity update reveals robust operational execution with strategic fleet management. The company delivered 14 new aircraft valued at $800 million, while simultaneously selling 16 aircraft for $520 million. This balanced approach demonstrates effective capital recycling—a critical success factor in the aircraft leasing business.

The standout element is the $328.5 million insurance settlement related to the Russia fleet. This represents significant value recovery from assets that could have been completely written off following sanctions-related issues.

When combined, the sales proceeds and insurance settlement generated $848.5 million in cash inflows, exceeding the $800 million deployed for new aircraft acquisitions. This positive cash flow dynamic is particularly noteworthy in such a capital-intensive industry.

AL's fleet composition of 487 owned aircraft, 57 managed aircraft, and a substantial orderbook of 255 new aircraft indicates both current scale and future growth capacity. The orderbook, extending through 2029, provides clear visibility into the company's expansion trajectory.

The timing of investments, primarily in the second half of the quarter, suggests potential acceleration in delivery pace, which could indicate positive momentum going into Q2 2025.

Aviation Industry Expert

AL's fleet movements this quarter demonstrate sophisticated portfolio management that balances fleet renewal, growth, and liquidity generation. The company's delivery mix of four A220s, nine 737 MAX aircraft (both -8 and -9 variants), and one 787-10 reflects a strategic focus on fuel-efficient, new-generation aircraft that command premium lease rates.

The sale of 16 aircraft represents typical portfolio pruning that optimizes fleet age profile while capitalizing on strong secondary market demand. With approximately $32.5 million per aircraft in sale proceeds ($520 million divided by 16 aircraft), AL appears to be achieving solid residual values.

The $328.5 million insurance settlement for Russia-related losses demonstrates successful risk mitigation following the extraordinary circumstances that left many lessors with stranded assets in Russia. This recovery significantly offsets potential write-downs that might have otherwise impacted the balance sheet.

Looking forward, AL's substantial orderbook of 255 aircraft represents over 50% of its current owned fleet size, positioning the company for continued growth. The mix of Airbus and Boeing orders provides both manufacturer diversification and access to the most in-demand aircraft types. With these aircraft delivering through 2029, AL has locked in delivery positions that will be increasingly valuable as production constraints at both manufacturers limit new order availability.

LOS ANGELES--(BUSINESS WIRE)-- Air Lease (NYSE: AL) announced an update on aircraft investments, sales, and other activities occurring in the first quarter of 2025.

As of March 31, 2025, AL’s fleet was comprised of 487 owned aircraft and 57 managed aircraft, with 255 new aircraft on order from Airbus and Boeing set to deliver through 2029.

Aircraft Investments

• Delivered 14 new aircraft from AL’s orderbook including four Airbus A220s, eight Boeing 737-8s, one Boeing 737-9, and one Boeing 787-10.
• Aircraft investments totaled approximately $800 million, with the majority occurring in the second half of the quarter.

Sales

• Sold 16 aircraft to third-party buyers.
• Aircraft sales proceeds for the quarter totaled approximately $520 million.

Russia Fleet Insurance Settlements

• Received an aggregate of $328.5 million in cash insurance settlement proceeds in the first quarter of 2025.

About Air Lease (NYSE: AL)

Air Lease is a leading global aircraft leasing company based in Los Angeles, California. Air Lease and its team of dedicated and experienced professionals are principally engaged in purchasing new commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. The company routinely posts information that may be important to investors in the “Investors” section of its website at www.airleasecorp.com. Investors and potential investors are encouraged to consult Air Lease’s website regularly for important information. The information contained on, or that may be accessed through, Air Lease’s website is not incorporated by reference into, and is not a part of, this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250408197473/en/

Investors:

Jason Arnold

Vice President, Investor Relations

Email: investors@airleasecorp.com

Media:

Ashley Arnold

Senior Manager, Media and Investor Relations

Email: press@airleasecorp.com

Source: Air Lease

FAQ

How many aircraft did Air Lease (AL) deliver in Q1 2025?

Air Lease delivered 14 new aircraft in Q1 2025, including 4 Airbus A220s, 8 Boeing 737-8s, 1 Boeing 737-9, and 1 Boeing 787-10.

What was the value of Air Lease's (AL) aircraft investments in Q1 2025?

Air Lease's aircraft investments totaled approximately $800 million in Q1 2025, with most occurring in the second half of the quarter.

How much did Air Lease (AL) receive in Russian fleet insurance settlements?

Air Lease received $328.5 million in cash insurance settlement proceeds related to its Russia fleet in Q1 2025.

What were Air Lease's (AL) aircraft sales figures for Q1 2025?

Air Lease sold 16 aircraft to third-party buyers, generating proceeds of approximately $520 million in Q1 2025.

How many aircraft does Air Lease (AL) have on order as of Q1 2025?

Air Lease has 255 new aircraft on order from Airbus and Boeing, scheduled for delivery through 2029.