Air Lease Eyes Growth Opportunities Amid Potential Airbus Plane Delivery Delays

Air Lease has expressed the possibility of increased demand for its aircraft, citing potential delays in Airbus’s new plane deliveries due to a jet-engine recall by key supplier Pratt & Whitney, a unit of RTX.

Following this news, Air Lease’s shares surged by 3.5% in after-hours trading.

CEO of Air Lease, John Plueger, commented during an investor call that the company is closely monitoring Airbus deliveries in light of RTX’s announcement concerning manufacturing defects in certain gear turbofan engines.

Boeing had recently provided Air Lease with a delay notice for its deliveries of the popular 737 Max passenger plane.

Air Lease also anticipates that the global surge in record-high temperatures may drive airlines to replace older, fuel-inefficient aircraft.

In the second quarter, net income experienced a 15% rise to $122 million, equivalent to $1.10 per share, compared to $105.9 million or $0.95 per share from the previous year. Adjusted earnings per share (EPS) of $1.58 outperformed the consensus estimate of $1.39.

The company’s revenue increased by 21% compared to the previous year, reaching $672.9 million, surpassing the consensus estimate of $659.9 million.

Sources: AirGuide Business airguide.info, msn.com, reuters.com, Air Lease