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Air Lease Corporation (NYSE: AL), established in 2010 and headquartered in Los Angeles, California, is a prominent player in the global aircraft leasing industry. The company focuses on acquiring commercial aircraft from top manufacturers like The Boeing Company and Airbus S.A.S, and subsequently leasing them to a large portfolio of airline partners worldwide. This strategy allows airlines to access the latest aircraft models without incurring the high upfront costs of purchasing them.
ALC’s diversified fleet includes both single-aisle narrow-bodied jets and twin-aisle wide-bodied aircraft, catering to various airline operational needs. The company’s business model centers around long-term lease agreements and generating revenue from the leasing of flight equipment. With operations spanning the Asia Pacific, Europe, the Middle East and Africa, Central America, South America and Mexico, and North America, ALC enjoys a robust global presence.
Recent corporate milestones underscore ALC's dynamic growth and market leadership. In February 2024, the company secured C$400 million through its medium-term notes offering, maturing in 2028, aimed at general corporate purposes including aircraft purchases and debt repayment. Additionally, ALC announced long-term lease agreements with Thai Airways International for three Boeing 787-9 Dreamliners and with Transavia for two Airbus A321-200neo aircraft, enhancing its portfolio and strengthening partnerships with major airlines.
The company’s financial performance remains strong, evidenced by Q1 2024 revenue of $663 million and a fleet expansion to 472 owned aircraft. ALC’s strategic initiatives include a well-placed order book of 320 new aircraft set for delivery through 2028, ensuring sustained growth. The firm maintains a disciplined financial approach with a composite cost of funds at 4.03% and a strategy to keep leverage around 2.5x Debt-to-Equity.
ALC's commitment to excellence is reflected in its strong customer relationships, a young and in-demand fleet, and proactive management of its aircraft investments. The company continues to adapt and thrive amidst industry challenges, demonstrating resilience and foresight in its operations.
Air Lease (NYSE: AL) has announced the long-term lease placement and delivery of one used Airbus A321-200neo aircraft to Centrum Air (Uzbekistan). This marks Centrum Air's first A321neo, enhancing its fleet capabilities. AJ Abedin, Senior VP of Air Lease , highlighted the benefits for Centrum Air and its passengers, including new destinations, operational efficiencies, and a premium travel experience. Centrum Air's CEO, Abdulaziz Abdurakhmanov, expressed enthusiasm about the addition, stating it will strengthen their market position and improve passenger comfort and safety. The lease placement aligns with Centrum Air's growth strategy in the rapidly expanding Uzbek air transport market.
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.
Air Lease (NYSE: AL) has provided an update on its aircraft investments, sales, and significant financing activities for Q2 2024. As of June 30, 2024, the company's fleet includes 474 owned and 67 managed aircraft, with 307 new planes on order from Boeing and Airbus, to be delivered by 2029. In Q2, ALC delivered 13 new aircraft from its orderbook and invested around $940 million, mostly in the latter half of the quarter. Additionally, ALC sold 11 aircraft, generating approximately $530 million in proceeds. On the financing front, ALC issued $600 million each in senior unsecured medium-term notes due in 2026 and 2031, with interest rates of 5.30% and 5.20%, respectively.
Air Lease (NYSE: AL) will hold a conference call on August 1, 2024, at 4:30 PM ET to discuss its Q2 2024 financial results. Interested investors can join the call by dialing provided domestic or international numbers, using passcode 5952437. The call will also be available via live broadcast on the company's Investors page. A replay will be accessible from August 1, 2024, until August 8, 2024. For replay, use the provided domestic or international dial-in numbers and the same passcode. Air Lease specializes in leasing new commercial aircraft to airline companies globally, offering customized leasing and financing solutions. More details can be found on their website.
Air Lease (NYSE: AL) announced the pricing of its public offering of $1.2 billion in senior unsecured medium-term notes. The offering includes $600 million of 5.30% notes due June 25, 2026, and $600 million of 5.20% notes due July 15, 2031. The sale is expected to close on June 25, 2024, subject to customary conditions. Proceeds will be used for general corporate purposes, including aircraft purchases and debt repayment. Joint book-running managers include BMO Capital Markets, BNP Paribas, BofA Securities, and others. The offering is being made under the company's effective shelf registration statement filed with the SEC on May 6, 2024.
Air Lease (ALC) reported its financial results for the first quarter of 2024, highlighting growth in revenues, fleet expansion, and sales activities. The company's revenues increased by 4% to $663 million, with net income of $97 million. ALC took delivery of 14 aircraft, sold five aircraft, and issued $1.4 billion in Medium-Term Notes in the quarter. The company ended the quarter with $30.6 billion in committed minimum future rental payments and increased its revolving credit facility capacity to $7.8 billion. A quarterly cash dividend of $0.21 per share was declared by the board of directors. ALC's flight equipment portfolio saw an increase in net book value to $26.5 billion, with 472 owned aircraft and 73 managed aircraft. The company's debt financing activities resulted in total debt financing of $19.5 billion, with 83.3% at a fixed rate and total liquidity of $6.5 billion.
Air Lease (AL) increased its senior unsecured revolving credit facility to $7.8 billion, extending the final maturity date to 2028 and amending total revolving commitments from $7.4 billion across 52 financial institutions. The facility accrues interest at adjusted term SOFR plus a margin of 1.05% per year with a 0.20% facility fee. This move strengthens ALC's funding strategy and reflects the company's strong credit metrics.
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