NYSE:AL
AIR LEASE CORP
A premier global aircraft lessor delivering stable cash flow and fleet growth to major commercial airlines worldwide.
Key Metrics
Investment Thesis
Bull Case
Investors should consider AL for its predictable, asset-light business model that generates high operating margins and strong free cash flow, providing a reliable income stream in the volatile aviation sector. The company's disciplined fleet renewal strategy ensures it holds modern aircraft with higher residual values, positioning it well against economic downturns while maintaining a low debt-to-equity ratio relative to its $8.47B shareholders equity.
Bear Case
Potential concerns include the substantial cash outflow from investing activities of -$1.32B indicating heavy reinvestment needs that could strain liquidity if lease collections slow. The company faces inherent industry risks such as airline bankruptcies which could impact lease payments, and the reliance on a few major customers makes it vulnerable to sector-specific downturns affecting air travel demand.
About AIR LEASE CORP
Air Lease Corporation is a leading global aircraft lessor specializing in leasing commercial jet aircraft to major airlines worldwide. The company operates primarily in the aviation sector, providing financing and operational solutions for narrow-body and wide-body aircraft fleets. Its business model focuses on generating steady cash flows through lease agreements while managing a large portfolio of modern aircraft assets.
Analysis
Management Discussion
Air Lease Corporation delivered a robust net profit of $1.09B in 2025, driven by strong operating cash flows of $1.73B despite significant capital expenditures of $237.7M for fleet expansion. The company successfully increased revenue from $2.32B in 2022 to $3.02B in 2025, demonstrating consistent top-line growth and effective balance sheet management with cash reserves hovering around $469M.
Industry Overview
The aircraft leasing industry is a specialized financial sector serving the commercial aviation market, acting as a critical capital intermediary between manufacturers and airlines. This industry thrives on global trade and tourism but remains sensitive to macroeconomic shifts, fuel costs, and geopolitical events that disrupt international flight paths.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $2.32B | $2.68B | $2.73B | $3.02B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $2.32B | $2.68B | $2.73B | $3.02B |
| Operating Expenses | $2.46B | $1.93B | $2.20B | $1.65B |
| Operating Income | $-138.8M | $753.6M | $533.3M | $1.37B |
| G&A | $156.9M | $186.0M | $185.9M | $219.4M |
| Stock-Based Comp | $15.6M | $34.6M | $33.9M | $48.9M |
| Depreciation | $966.0M | $1.07B | $1.14B | $1.22B |
| Other OpEx | $2.30B | $1.75B | $2.01B | $1.43B |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $546.2M | $709.0M | — | — |
| Pre-Tax Income | $-138.8M | $753.6M | $533.3M | $1.37B |
| Income Tax | $-41.7M | $139.0M | $105.6M | $281.3M |
| Continuing Ops | $-97.0M | $614.6M | $427.7M | $1.09B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-97.0M | $614.6M | $427.7M | $1.09B |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-97.0M | $614.6M | $427.7M | $1.09B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $766.4M | $460.9M | $472.6M | $466.4M |
| Total Assets | $28.40B | $30.45B | $32.28B | $32.88B |
| Total Liabilities | $21.75B | $23.29B | $24.75B | $24.41B |
| Shareholders' Equity | $6.65B | $7.16B | $7.53B | $8.47B |
| Paid-In Capital | $3.26B | $3.29B | $3.36B | $3.38B |
| Retained Earnings | $3.39B | $3.87B | $4.15B | $5.09B |
| AOCI | $2.4M | $1.8M | $19.6M | $-4.7M |
| Total L&E | $28.40B | $30.45B | $32.28B | $32.88B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-97.0M | $614.6M | $427.7M | $1.09B |
| Non-Cash Adjustments | $1.23B | $1.17B | $1.19B | $773.0M |
| Working Capital Changes | $246.9M | $-36.6M | $55.4M | $-126.7M |
| Cash from Operations | $1.38B | $1.75B | $1.68B | $1.73B |
| Capital Expenditures | $216.6M | $305.3M | $387.3M | $237.7M |
| Cash from Investing | $-3.40B | $-2.78B | $-3.04B | $-1.32B |
| Share Buybacks | $150.0M | $0 | $0 | — |
| Dividends Paid | $83.3M | $88.8M | $93.5M | $98.3M |
| Cash from Financing | $1.69B | $716.0M | $1.37B | $-419.7M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-328.3M | $-315.5M | $11.6M | $-6.2M |
| Beginning Cash | $1.11B | $780.0M | $464.5M | $476.1M |
| Ending Cash | $780.0M | $464.5M | $476.1M | $469.9M |
Frequently Asked Questions
How does AIR LEASE CORP make money?
Core revenue is derived from leasing aircraft (narrow-body and wide-body) to airline customers, supported by ancillary services including maintenance, repair, and overhaul contracts.
What are the main risks for AL?
Significant exposure to aviation fuel price volatility, geopolitical instability affecting global air travel demand, potential regulatory changes impacting leasing operations, and the cyclical nature of commercial airline profitability which can lead to lease defaults or reduced renewal rates.
What is AL's competitive advantage?
The company benefits from a high-quality, young aircraft fleet that commands premium lease rates, strong relationships with major Original Equipment Manufacturers like Boeing and Airbus, and a diversified customer base across global carriers that reduces single-airline dependency.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.