Air Lease Corporation invested $1.6 billion through 17 aircraft deliveries in the second quarter, $300 million less than its earlier estimates.
The Los Angeles-based lessor attributes the lower quantum to delays from Airbus and Boeing, in a statement detailing activities for the period.
The same happened in the first quarter, with $400 million worth of deliveries affected by Airbus delivery delays and the suspension of 737 Max handovers. The lessor had expected to take about $6.5 billion worth of new aircraft in 2019 and said then that the majority of deliveries will still occur in the second half of the year.
Of the 17 deliveries in Q2, one is a used Airbus A330-300 purchased in the secondary market. The rest are new, comprising of one A320neo, six A321neos, four A330-900neos, two A350-900s, and three Boeing 787-9s. There were no aircraft sales during the quarter.
At the end of June, Air Lease had 297 owned and 64 managed aircraft in its fleet, with 345 committed acquisitions that will be delivered through 2024.
Financial highlights include raising over $1 billion through two bonds: a $750 million, 3.75% note due 2026, and a $300 million note that pays 0.67% over Libor, due 2021.
Last month, Air Lease became the launch customer of the A321XLR, signing a letter of intent for 27 of the new longer range model, along with 23 A321neos and 50 A220-300s, at the 2019 Paris Air Show.
In a separate deal at the same event, the lessor committed to purchasing five more 787-9s.
Source: Cirium Dashboard