LOS ANGELES - Air Lease Corporation (NYSE: NYSE:AL), a leading aircraft leasing company, has announced significant activities in its portfolio for the third quarter of 2024. The company disclosed the delivery of 20 new aircraft, sales of nine older planes, and the issuance of a new series of preferred stock.
The company's recent investments in new aircraft amounted to roughly $1.9 billion, enhancing its fleet which, as of September 30, 2024, consists of 485 owned aircraft and 64 managed ones. The new deliveries from Air Lease's order book include a variety of models, such as three Airbus A220s, six Airbus A321neos, three Airbus A330-900neos, two Airbus A350-900s, two Boeing 737-8s, one Boeing 787-9, and three Boeing 787-10s. These additions are part of a larger order of 287 new aircraft from Airbus and Boeing, scheduled for delivery through 2029.
On the sales front, Air Lease has sold nine aircraft to third-party buyers, with the transactions totaling approximately $340 million for the quarter.
In terms of financing, the company has issued $300 million of 6.00% fixed-rate reset non-cumulative perpetual preferred stock, Series D. This move is part of Air Lease's broader financing activities and reflects its ongoing strategy to secure capital for future growth.
The press release issued by Air Lease Corporation also contains forward-looking statements regarding the company's future results and prospects. However, these are not guarantees of future performance, and actual outcomes may differ materially due to various factors.
Air Lease, headquartered in Los Angeles, California, is known for its customized aircraft leasing and financing solutions. The company serves an international customer base and emphasizes the importance of providing updated information to investors on its website, although it clarifies that such online information is not incorporated into the press release.
This report is based on a press release statement, and it reflects the company's activities and financial engagements as of the end of the third quarter in 2024.
In other recent news, Los Angeles-based Air Lease Corp has been faced with several significant developments. The company issued a new series of preferred stock, Series D, and made corresponding changes to its bylaws. This issuance introduces certain restrictions on Air Lease's ability to declare dividends or repurchase its common stock if dividends on the Series D Preferred Stock have not been paid for the preceding dividend period.
Air Lease also reported potential delays in Boeing aircraft deliveries due to a labor strike at The Boeing Company (NYSE:BA). The impact of this on the company's capital expenditures remains uncertain. Before the strike, Air Lease had taken delivery of two Boeing 737 MAX aircraft and three Boeing 787 aircraft during the third quarter of 2024.
On the earnings front, Air Lease announced second quarter 2024 revenues of $667 million and diluted earnings per share of $0.81. Despite challenges such as OEM delivery delays and lower end-of-lease revenues, the company maintains a 100% utilization rate. The company's forward order book is fully placed through 2025, and it anticipates full-year 2024 aircraft deliveries to be between $4.5 billion and $5.5 billion. These are the recent developments surrounding Air Lease Corp.
InvestingPro Insights
Air Lease Corporation's recent activities align with its strong market position, as evidenced by InvestingPro data. The company's market capitalization stands at $4.82 billion, reflecting its significant presence in the aircraft leasing industry. Air Lease's impressive gross profit margin of 59.37% for the last twelve months ending Q2 2024 underscores its operational efficiency, which is crucial in a capital-intensive business like aircraft leasing.
An InvestingPro Tip highlights that Air Lease "has raised its dividend for 11 consecutive years," demonstrating a commitment to shareholder returns. This is particularly noteworthy given the company's recent $300 million preferred stock issuance, which suggests a balanced approach to capital allocation and growth financing.
Another relevant InvestingPro Tip indicates that Air Lease is "trading at a low earnings multiple," with a P/E ratio of 9.2. This could be attractive to value investors, especially considering the company's robust fleet expansion and sales activities reported in the third quarter of 2024.
It's worth noting that InvestingPro offers 12 additional tips for Air Lease Corporation, providing investors with a more comprehensive analysis of the company's financial health and market position.
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