LOS ANGELES - Air Lease Corporation (NYSE: NYSE:AL), a leading aircraft leasing company, has reported significant activity in the second quarter of 2024, including new aircraft deliveries, sales, and financing efforts. The company's current fleet includes 474 owned and 67 managed aircraft, with an additional 307 aircraft on order from Boeing (NYSE:BA) and Airbus, scheduled for delivery by 2029.
During the quarter, Air Lease delivered 13 new aircraft from its order book, which included a mix of Airbus and Boeing models, such as two Airbus A220s, five A321neos, one A330-900neo, one A350-900, two Boeing 737-8s, one 737-9, and one 787-9. These investments amounted to approximately $940 million, primarily occurring in the latter half of the quarter.
The company also sold 11 aircraft to third-party buyers, with sales proceeds totaling around $530 million. On the financing front, Air Lease issued $600 million of 5.30% senior unsecured medium-term notes due in 2026, and an additional $600 million of 5.20% senior unsecured medium-term notes due in 2031.
This information is based on a press release statement and has not been independently verified.
In other recent news, Air Lease Corporation reported notable first-quarter 2024 earnings, revealing revenues of $663 million and diluted earnings per share of $0.87.
Despite a minor shortfall in revenue, as noted by BMO Capital and TD Cowen, the company's solid performance was attributed to its strategic management of its fleet and order book. BMO Capital adjusted its price target for Air Lease to $55.00 and TD Cowen reduced its target to $56, both firms, however, maintained a positive outlook on the company.
Recent developments indicate that Air Lease's near-term estimates were decreased by 5% due to lower lease revenues, particularly from end-of-lease contributions. Despite this, the company saw increased gains in sales volume and margins. Analysts from BMO Capital highlighted an industry trend of lease contract rates being approximately 14-15% higher than those signed two years ago, suggesting potential for continued lease rate growth.
TD Cowen noted robust demand for Air Lease's aircraft, with the company expecting around $5.1 billion in aircraft deliveries throughout 2024. Despite facing the challenge of having 50 aircraft returning from leases in the upcoming year, Air Lease has already secured placements for all of its order books for the year 2025, indicating a strong forward-looking demand for their aircraft.
InvestingPro Insights
Air Lease Corporation (NYSE: AL) has demonstrated a robust operational strategy, as reflected in its recent aircraft deliveries, sales, and financing activities. In line with their efforts, InvestingPro data reveals a series of metrics that underscore the company's financial health and market position as of the first quarter of 2024. Notably, the company boasts a market capitalization of $5.31 billion and an attractive P/E ratio of 9.59, which is considered low relative to near-term earnings growth. This is further supported by an adjusted P/E ratio of 10.54 for the last twelve months, suggesting a favorable valuation for investors.
InvestingPro Tips highlight that Air Lease operates with a significant debt burden, which is an important consideration for investors. However, the company's impressive gross profit margins, which stand at nearly 60% for the last twelve months, indicate strong operational efficiency. Moreover, Air Lease has consistently rewarded its shareholders, having raised its dividend for 11 consecutive years, with a dividend yield of 1.76% as of the most recent data.
For those looking to delve deeper into Air Lease's financials and market prospects, InvestingPro offers additional tips that can provide valuable insights. Currently, there are 10 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/AL. Investors interested in leveraging these insights can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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