Air Lease CEO said that delivery delays from Boeing and Airbus will continue for years

Air Lease has indicated that aircraft delivery delays from Boeing and Airbus are set to continue for several years, causing further problems for the aerospace industry. Air Lease Chief Executive, John Plueger, revealed that the company had recently received additional notices of delay from both planemakers for 2023 and 2024 deliveries.

Furthermore, one original equipment manufacturer (OEM) has advised the company to expect delays until 2028. The constrained supply of jets has created a headache for the industry and frustrated airlines, which are turning to aircraft lessors to expand their capacity to tap into the burgeoning travel demand.

Air Lease has benefited from the shortage of jets, with the associated rise in lease rates helping the company to post better-than-expected first-quarter earnings. Nevertheless, the delivery delays remain problematic for Air Lease, which has a $24 billion order backlog with both Boeing and Airbus.

The company is reportedly in discussions with the planemakers to determine the extent and duration of the delivery delays. As of March 31, the aircraft lessor had commitments to purchase 376 aircraft for delivery through 2029.

The company reported net income of $118.3 million, or $1.06 per share for the quarter ended March 31, ahead of analysts’ estimate of 99 cents, according to Refinitiv data. Revenue rose 6.6% to $636.1 million, beating estimates of$607.5 million.