Air Lease Corporation Announces Delivery of First of 19 New Airbus Aircraft to Condor, Germany

Rhea-AI Summary

Air Lease (NYSE: AL) has delivered the first of 19 new Airbus aircraft to Condor, a German airline. This delivery marks the beginning of a significant fleet modernization for Condor, with 17 A321-200neos and two A320-200neos scheduled for delivery through 2027. The A321-200neo is expected to enhance Condor's fuel efficiency, performance, and passenger comfort. This delivery solidifies ALC's position as Condor's largest aircraft lessor, with an additional three A321s and two A320s already on long-term lease to the airline.

The partnership between ALC and Condor aims to support the airline's growing fleet and expanding route network. Condor's CFO, Björn Walther, expressed enthusiasm about the delivery, stating that this collaboration will help Condor offer the most modern and efficient fleet in Europe for short and medium-haul routes.

Positive

• Delivery of the first of 19 new Airbus aircraft to Condor
• ALC solidifies position as Condor's largest aircraft lessor
• A321-200neo expected to improve fuel efficiency and performance for Condor
• Partnership supports Condor's fleet growth and route network expansion

Negative

• None.

Aviation Industry Analyst

The delivery of a new Airbus A321-200neo to Condor by Air Lease Corporation (ALC) is noteworthy for several reasons. The A321-200neo is known for its fuel efficiency, which can translate into cost savings for the airline through reduced fuel consumption and lower emissions. This efficiency is particularly important in an industry where fuel costs are a substantial part of the operational budget. By modernizing its fleet, Condor can maintain a competitive edge in terms of operational cost and environmental impact, aligning with increasing regulatory and consumer pressures for sustainability.

Furthermore, the long-term lease agreement with ALC provides Condor with a stable, predictable cost structure, which is important for financial planning. Leasing rather than purchasing aircraft outright also helps in conserving capital and enhances financial flexibility.

For ALC, this is a strategic move that strengthens its market position and underscores its role as a major player in aircraft leasing. This partnership could also open up future opportunities with other airlines seeking to modernize their fleets.

Financial Analyst

From a financial perspective, this partnership between ALC and Condor is promising. The leasing of 19 new Airbus aircraft represents a significant, stable future revenue stream for ALC. Long-term leases generally offer consistent cash flows, which can be appealing for investors looking for predictable returns.

For Condor, the agreement allows for fleet modernization without the substantial capital outlay that purchasing new aircraft requires. This decision could positively impact their balance sheet by avoiding large debts or depletion of reserves, while still upgrading to more efficient aircraft. Improved fuel efficiency of the A321neo models can lead to lower operating costs, potentially improving Condor's profitability.

In the short-term, the market might react positively to this news as it demonstrates strategic planning and financial prudence. Over the long term, the benefits from lower operational costs and potential growth in passenger numbers due to a newer fleet could be reflected in both companies' financial performance.

LOS ANGELES--(BUSINESS WIRE)-- Today Air Lease Corporation (NYSE: AL) announced the delivery of one new Airbus A321-200neo to Condor. This aircraft is the first of 19 new Airbus aircraft confirmed to deliver to the airline from ALC’s orderbook with Airbus through 2027, including 17 A321-200neos and two A320-200neos. In addition to these aircraft, ALC currently has three A321s and two A320s on long-term lease to the airline.

“ALC is pleased to announce this significant first of 19 new Airbus aircraft delivery to Condor today,” said Steven F. Udvar-Házy, Executive Chairman of Air Lease Corporation. “The A321-200neo will modernize Condor’s jet fleet with a new standard of fuel-efficiency, performance and passenger comfort, and continue ALC’s leadership position as Condor’s largest aircraft Lessor.”

“We are thrilled to continue to build our strong relationship with Condor with our first A321neo delivery to the airline,” added Lauren Kervick, Vice President of Air Lease Corporation. “Our A321-200neos will fill an important role in Condor’s growing fleet and expanding route network.”

“Condor is looking forward to welcome another A321neo to the fleet,” said Björn Walther, Chief Financial Officer of Condor. “We are delighted to have ALC onboard as our long-term partner for further 18 narrowbody aircraft. Thanks to this strong partnership, we will soon be offering guests on short and medium-haul routes the most modern and efficient fleet in Europe.”

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including expected delivery dates. Such statements are based on current expectations and projections about our future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law. Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including those discussed in our filings with the Securities and Exchange Commission.

About Air Lease Corporation (NYSE: AL)

Air Lease Corporation is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC 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 Corporation’s website regularly for important information. The information contained on, or that may be accessed through, ALC’s website is not incorporated by reference into, and is not a part of, this press release.

About Condor

As Germany's most popular leisure airline, Condor has been taking its guests to the world's most beautiful holiday destinations for more than 66 years. Every year, more than nine million guests fly with Condor from the nine largest airports in Germany, from Zurich in Switzerland and Vienna in Austria to around 90 destinations in Europe, Africa and America. Condor operates a fleet of over 50 aircraft, which are maintained by the company's own maintenance operation, Condor Technik GmbH, according to the highest safety standards at the Frankfurt and Dusseldorf locations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240718956603/en/

Investors:

Jason Arnold

Vice President, Investor Relations

Email: investors@airleasecorp.com

Media:

Laura Woeste

Senior Manager, Media and Investor Relations

Email: press@airleasecorp.com

Ashley Arnold

Senior Manager, Media and Investor Relations

Email: press@airleasecorp.com

Source: Air Lease Corporation

FAQ

How many new Airbus aircraft will Air Lease deliver to Condor?

Air Lease (AL) will deliver a total of 19 new Airbus aircraft to Condor through 2027, including 17 A321-200neos and two A320-200neos.

What benefits will the A321-200neo bring to Condor's fleet?

The A321-200neo will modernize Condor's jet fleet with improved fuel efficiency, better performance, and enhanced passenger comfort.

How many aircraft does Air Lease (AL) currently have on lease to Condor?

In addition to the new deliveries, Air Lease currently has three A321s and two A320s on long-term lease to Condor.

What is Condor's goal with this fleet modernization?

Condor aims to offer the most modern and efficient fleet in Europe for short and medium-haul routes through this partnership with Air Lease (AL).