Air Lease Shares Were Up Today: What's Going On Today?

Zinger Key Points

Air Lease Corporation reported record revenues driven by $5 billion in aircraft purchases and $1.7 billion in sales.
Despite increased sales, net income fell due to higher interest expenses and fewer aircraft returns.
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Air Lease Corporation AL shares are trading higher Friday following its better-than-expected fourth-quarter 2024 financial results.

What To Know: Despite a 1% decline in quarterly rental revenue, aircraft sales and trading revenue increased by 2%, driven by gains from the sale of 14 aircraft. The company reported quarterly earnings of $1.34 per share which beat the analyst consensus estimate of 74 cents by 81.08%. This is a 30.21 percent decrease over earnings of $1.92 per share from the same period last year. The company reported quarterly sales of $712.89 million which beat the analyst consensus estimate of $704.03 million by 1.26%.

Full-year 2024 results showed record revenues of $2.73 billion, supported by $5 billion in aircraft purchases and $1.7 billion in aircraft sales. The company highlighted a strong leasing pipeline, with 100% of expected aircraft through 2026 already placed on long-term leases.

Key takeaways include:

Fleet Growth: Delivered 18 aircraft in the fourth quarter, ending with 489 aircraft and over $32 billion in total assets.
Financial Health: Ended the year with $8.1 billion in liquidity and raised $1.3 billion in new debt financing.
Dividend: The board approved a quarterly cash dividend of 22 cents per share, payable on April 7, 2025.
Outlook: CEO John L. Plueger and Executive Chairman Steven Udvar-Házy expect higher lease rates and aircraft valuations due to ongoing aircraft shortages.

AL Price Action: Air lease shares were up 6.54% at $49.38 at the time of writing, according to Benzinga Pro.