Air Lease Corporation Reports 11.3% Revenue Growth to $738.3 Million in Q1 2025

Air Lease Corporation (ALC) reported significant financial performance for the first quarter of 2025, with total revenues reaching $738.3 million, an increase of 11.3% compared to $663.3 million in the same period last year. The growth was primarily driven by a rise in rental income from flight equipment, which amounted to $645.4 million, up from $614.3 million, and a notable increase in aircraft sales and trading revenue, which surged to $92.9 million from $49.0 million. The company’s net income attributable to common stockholders also saw a substantial increase, rising to $364.8 million, or $3.26 per diluted share, compared to $97.4 million, or $0.87 per diluted share, in the prior year.

The financial results reflect a strong recovery from the previous fiscal period, particularly due to a net benefit of $331.9 million from settlements related to insurance claims for aircraft detained in Russia. This recovery was a significant factor in the overall profitability, offsetting higher interest expenses that increased to $222.6 million from $194.7 million, driven by a rise in the composite cost of funds to 4.26%. Additionally, selling, general, and administrative expenses rose to $59.3 million, influenced by costs associated with the retirement of the Executive Chairman.

Operationally, ALC maintained a fleet of 487 aircraft as of March 31, 2025, with a net book value of $28.6 billion, reflecting a 1.6% increase from the previous quarter. The company also managed 57 aircraft and had 260 aircraft on order, with an estimated aggregate commitment of $16.6 billion for deliveries through 2031. The lease utilization rate remained strong at 100%, and ALC's customer base expanded to 112 airlines across 57 countries, indicating robust demand for its leasing services.

Looking ahead, ALC anticipates continued growth in rental revenues and aircraft sales, supported by a favorable airline operating environment and increasing demand for newer, fuel-efficient aircraft. However, the company also faces challenges, including potential delivery delays from manufacturers Airbus and Boeing, which could impact its orderbook and financial commitments. The company has taken steps to enhance its liquidity, ending the quarter with $7.4 billion in available liquidity, including $456.6 million in cash and $6.9 billion in undrawn balances under its unsecured revolving credit facility. ALC's management remains optimistic about the long-term fundamentals of the aircraft leasing industry, despite the ongoing geopolitical and economic uncertainties.