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TheStreet Open House

Air Lease Corporation Announces Third Quarter 2012 Results

Stocks in this article: AL

“We completed our final placements for 2013 and 2014, and now turn our attention to the back half of 2015. ALC has on order the aircraft types that the market demands and the financing rates have remained low, resulting in yields that are in line with our plan. Our operating results follow our order pipeline, whereby a large second quarter of deliveries drove the strong third quarter revenue growth. As we have told you before, we have many aircraft in our pipeline delivering to Asian operators and you can now start to see our fleet concentration shifting in that direction. In particular, the major Chinese airlines are beginning a replacement cycle for their first generation western built aircraft, such as the Boeing 737-300/400,” said John L. Plueger, President and Chief Operating Officer of Air Lease Corporation.

Fleet Growth

Building on our base of 137 aircraft at June 30, 2012, we added five aircraft during the third quarter of 2012 and ended the quarter with 142 aircraft spread across a diverse and balanced customer base of 66 airlines based in 37 countries.

Below are portfolio metrics of our fleet as of September 30, 2012 and December 31, 2011:

  September 30, 2012   December 31, 2011
Fleet size 142 102
Weighted-average fleet age (1) 3.4 years 3.6 years

Weighted-average remaining lease term (1)

7.0 years 6.6 years
Aggregate fleet cost $ 6.16 Billion $ 4.37 Billion

(1) Weighted-average fleet age and remaining lease term calculated based on net book value.

 

Over 90% of our aircraft are operated internationally. The following table sets forth the percentage of net book value of our aircraft portfolio in the indicated regions as of September 30, 2012 and December 31, 2011:

    September 30, 2012       December 31, 2011  

Region

  % of net book value     % of net book value  
Europe  

38.6

%

 

40.6

%

Asia/Pacific

35.6

33.5

 

Central America, South America and Mexico

12.3

12.2

 

U.S. and Canada

7.9

9.1

 

The Middle East and Africa  

5.6

   

4.6

 

Total  

100.0

%

 

100.0

%

 

The following table sets forth the number of aircraft we leased by aircraft type as of September 30, 2012 and December 31, 2011:

  September 30, 2012   December 31, 2011
Number of   % of Number of   % of

Aircraft type

aircraft total aircraft total
Airbus A319/320/321 39 27 .5% 31 30 .4%
Airbus A330-200/300 17 12 .0 11 10 .8
Boeing 737-700/800 40 28 .2 38 37 .2
Boeing 767-300ER 3 2 .1 3 2 .9
Boeing 777-200/300ER 7 4 .9 5 4 .9
Embraer E175/190 28 19 .7 12 11 .8
ATR 72-600 8 5 .6 2 2 .0
Total 142 100 .0% 102 100 .0%
 

We have made further progress in placing our aircraft. As of September 30, 2012, we have entered into contracts for the lease of all 70 aircraft delivering through 2014, for nine new aircraft delivering in 2015 and for eight new aircraft delivering after 2016.

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