Air Lease, an aircraft lessor, anticipates an increase in demand opportunities due to potential delays in Airbus deliveries as a result of Pratt & Whitney engine issues. This could result in higher lease rates and aid airlines that are struggling with limited jet supplies by turning to lessors to boost their capacity.
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Air Lease's lease rates have contributed to a better-than-expected Q2 performance, causing a 2.66% increase in share value after hours. CEO John Plueger has stated that the company is closely monitoring Airbus deliveries following RTX's announcement of manufacturing defects on certain gear turbofan engines.
Additionally, Boeing has informed Air Lease of a further delay in MAX deliveries. As of June 30, Air Lease owns 448 aircraft and manages 80, with 359 new planes expected to be delivered by Boeing and Airbus through 2029. The company exceeded analyst estimates, with a Q2 profit of $1.10 per share compared to an average estimate of $1.07.
Air Lease also predicts that record global temperatures will put pressure on airlines to replace older planes, resulting in increased demand. In the quarter, revenue rose 20.7% to $672.9 million, surpassing expectations of $660.3 million.