Air Lease Delivers 14 New Aircraft In Q1, Investments Fall
Portfolio Pulse from Nabaparna Bhattacharya
Air Lease Corporation (AL) reported delivering 14 new aircraft in Q1 2024, a decrease from 22 in the same period last year. The company's investments in aircraft fell to $900 million from $1.4 billion year-over-year, and it sold five aircraft, up from two. Air Lease's fleet includes 472 owned and 73 managed aircraft, with 320 new aircraft on order from Boeing (BA) and Airbus (EADSY) through 2028. The company also issued $500 million in senior unsecured notes and disclosed lease agreements for three Boeing 787-9 aircraft with Thai Airways.
April 09, 2024 | 1:21 pm
News sentiment analysis
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NEUTRAL IMPACT
Air Lease Corporation reported a decrease in aircraft deliveries and investments in Q1 2024 compared to the previous year.
The decrease in aircraft deliveries and investments might concern investors, but the ongoing fleet expansion and lease agreements indicate a strategic approach to growth. The mixed signals could lead to a neutral short-term impact on AL's stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Air Lease is also accessible to investors through the Avantis U.S. Small Cap Value ETF.
Given that AVUV holds Air Lease, the ETF's performance is partially dependent on AL's financial health and stock performance, providing a diversified investment option.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Air Lease has 320 new aircraft on order from Boeing, with deliveries scheduled through 2028.
The substantial order from Air Lease highlights Boeing's strong partnership and future revenue potential. This positive news is likely to have a favorable short-term impact on Boeing's stock.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Air Lease's fleet expansion includes orders for new aircraft from Airbus, with deliveries through 2028.
The ongoing orders from Air Lease are a testament to Airbus's strong relationship and future earnings potential, likely benefiting Airbus's stock in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Investors can gain exposure to Air Lease through the Invesco S&P SmallCap Industrials ETF.
As PSCI includes Air Lease in its holdings, positive or negative performance by AL could influence the ETF's performance, albeit to a lesser extent due to diversification.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50