Air Lease Corporation Reports 9.7% Revenue Growth to $731.7 Million in Q2 2025

Air Lease Corporation (ALC) reported significant financial performance for the second quarter of 2025, with total revenues reaching $731.7 million, a 9.7% increase from $667.3 million in the same period last year. The growth was primarily driven by a rise in lease rental income, which amounted to $678.7 million, up from $609.5 million in the prior year. Net income attributable to common stockholders surged to $374.1 million, or $3.33 per diluted share, compared to $90.4 million, or $0.81 per diluted share, in the second quarter of 2024. This increase was largely attributed to a net benefit of $344 million from settlements related to aircraft detained in Russia, alongside higher revenues from the expanding fleet.

In terms of operational metrics, ALC's fleet grew to 495 aircraft, with a net book value of $29.1 billion as of June 30, 2025, reflecting a 3.4% increase from $28.2 billion at the end of 2024. The company managed 53 aircraft and had 241 aircraft on order with manufacturers, representing a total commitment of approximately $14.1 billion. The lease utilization rate remained strong at 100%, and ALC maintained a diversified customer base of 109 airlines across 55 countries.

The company also experienced changes in its expenses, with total expenses for the quarter amounting to $245.1 million, a decrease from $539.5 million in the previous year. This reduction was influenced by a significant recovery of $344 million related to the Russian fleet write-off, which was recorded as a negative expense. However, interest expenses rose to $222.3 million, up from $203.3 million, due to an increase in the composite cost of funds, which reached 4.28% as of June 30, 2025.

Strategically, ALC has been active in the aircraft acquisition space, purchasing 12 new aircraft from Airbus and Boeing during the quarter while selling four. The company has also amended its revolving credit facility, increasing its capacity to approximately $8.4 billion, which enhances its liquidity position. As of June 30, 2025, ALC reported available liquidity of $7.9 billion, consisting of $454.8 million in cash and $7.5 billion in undrawn credit facilities.

Looking ahead, ALC anticipates continued demand for its aircraft, driven by the need for airlines to replace aging fleets and the ongoing recovery in air travel. However, the company remains cautious about potential delivery delays from manufacturers due to ongoing supply chain issues and geopolitical factors. The outlook for the remainder of 2025 suggests a focus on maintaining strong operational performance while navigating the complexities of the current market environment.