Air Lease expressed skepticism about whether aircraft manufacturers Boeing and Airbus would be able to meet their 2023 delivery goals due to quality issues with their suppliers. Air Lease Chairman Steven Udvar-Hazy stated during a post-earnings call that he doubts both major manufacturers will achieve their projected delivery targets.
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This ongoing shortage of jets has proven beneficial for leasing companies like Air Lease, which reported a third-quarter profit per share of $1.10, surpassing analysts' predictions of $1.03, as per LSEG data. Typically, jet deliveries increase in November and December as manufacturers strive to meet their yearly goals. However, delays from Boeing and Airbus have left airlines struggling to meet high travel demand during the peak season.
Boeing, a U.S. aircraft manufacturer, reduced its delivery forecast for its top-selling 737 jets last month, citing quality issues at supplier Spirit AeroSystems. Airbus, its competitor, has set a goal to deliver 720 commercial jets this year. It was reported earlier on Monday that Airbus delivered 55 aircraft in September, bringing the total deliveries for the year to 559 units. Udvar-Hazy of Air Lease pointed out that issues with engine suppliers Pratt & Whitney are preventing Airbus from meeting their fourth-quarter targets.
RTX, the owner of Pratt & Whitney, informed airlines in September that hundreds of their Airbus jets would need to be grounded periodically over the next few years for inspections due to a rare manufacturing defect. Air Lease also mentioned that it has two aircraft leased to a customer in Israel. Air Lease CEO John Plueger stated that they are closely monitoring the region along with all of their airline lessees.
