Aug 4 (Reuters) - Air Lease Corp on Thursday reported
a better-than-expected quarterly profit as a shortage of jets
due to delays in deliveries from Boeing Co and Airbus
boosted demand for the lessor's planes.
A stretched supply chain and an acute labor shortage has
stymied Boeing and Airbus' ability to stick to their delivery
schedule, leaving carriers to turn to Air Lease for its new and
While delays are also a headache for the Los Angeles-based
leasing giant, which has a $28 billion order backlog with the
planemakers, it has boosted lease rates of its existing fleet.
Air Lease said it would examine progress payments that the
company makes to Boeing and Airbus as deliveries of aircraft get
delayed. Boeing declined to comment when asked about Air Lease's
"We continue to experience delays of several months on our
Airbus narrow-body deliveries and 737 MAXs also continued to be
delayed as well," said Air Lease Chief Executive John Plueger.
He warned the supply challenges will likely extend to the
next couple of years, which would likely further exacerbate the
current shortage of jets.
Both Airbus and Boeing typically sell planes to leasing
companies to stay afloat when economic concerns deter airlines
Meanwhile, the leasing giant said it has submitted insurance
claims for its jets stranded in Russia, for which it booked
charges of about $800 million in April.
Shares of the company jumped 1.12% in extended trade, after
an increase in international passenger traffic flooded its order
book and boosted earnings.
It reported net profit of $105.9 million, or 95 cents per
share, in the three months ended June 30, ahead of analysts'
estimate of 94 cents per share, according to Refinitiv IBES.
Revenue rose 13.4% to $557.7 million in the quarter, topping
estimates of $544.8 million.
(Reporting by Aishwarya Nair and Abhijith Ganapavaram in
Bengaluru; Editing by Devika Syamnath and Krishna Chandra Eluri)