Mission Statement, Vision, & Core Values (2024) of Air Lease Corporation (AL).

An Overview of Air Lease Corporation (AL)

General Summary of Air Lease Corporation (AL)

Air Lease Corporation (ALC) was founded in 2010 by Steven F. Udvar-Házy, who is credited as a pioneer in the aircraft leasing industry. The company is headquartered in Los Angeles, California, and specializes in purchasing modern, fuel-efficient commercial jet aircraft directly from manufacturers like Airbus and Boeing, leasing them to airlines worldwide. As of 2024, ALC has a fleet comprising 485 owned aircraft and 64 managed aircraft, with a net book value of $27.9 billion, reflecting a growth of 6.3% from the previous year.

ALC generates revenue primarily through leasing activities, with additional income from aircraft sales and fleet management services. The company maintains a strong lease utilization rate of 100% and services a globally diversified customer base of 117 airlines across 59 countries.

Company's Financial Performance in the Latest Financial Reports

In the third quarter of 2024, Air Lease Corporation reported total revenues of $690.2 million, a 4.7% increase compared to the same quarter in 2023, driven by fleet growth and increased sales activity. Rental revenue for the same period was recorded at $625.2 million, up from $604.0 million the previous year. However, the net income attributable to common stockholders decreased to $91.6 million, or $0.82 per diluted share, down from $122.0 million, or $1.10 per diluted share, in Q3 2023. This decline was primarily due to higher interest expenses, which totaled $217.5 million for the quarter, compared to $175.5 million in the prior year.

For the nine months ended September 30, 2024, ALC reported consolidated net income of $279.5 million, or $2.50 per diluted share, compared to $362.3 million, or $3.25 per diluted share for the same period in 2023. The adjusted net income before income taxes for the nine months was $423.8 million, down from $519.7 million year-over-year. The company's total debt as of September 30, 2024, stood at $20.3 billion, with a composite cost of funds of 4.21%.

Introduction to Air Lease Corporation as a Leader in the Industry

Air Lease Corporation is recognized as one of the leading aircraft leasing companies globally, with a robust strategy focused on acquiring modern aircraft and maintaining a young fleet. The company has significant commitments for future aircraft deliveries, with 287 aircraft on order valued at approximately $18.2 billion. ALC's commitment to maintaining a strong balance sheet and its investment-grade credit rating allow it to effectively navigate the competitive landscape of the aircraft leasing industry, ensuring long-term growth and profitability. ALC's effective capital allocation strategy prioritizes fleet growth, maintaining an investment-grade balance sheet, and returning excess cash to shareholders.

With a comprehensive understanding of the aviation market and a diversified portfolio, Air Lease Corporation continues to set benchmarks for success in the aircraft leasing sector. For more insights on ALC's operational strategies and market position, further details can be explored below.

Mission Statement of Air Lease Corporation (AL)

Mission Statement of Air Lease Corporation (AL)

Air Lease Corporation's mission statement emphasizes its commitment to being a leader in the aircraft leasing industry by focusing on quality, service, and innovation. The statement serves as a guiding principle for the company's long-term goals and operational strategies.

Core Component 1: Leadership in Aircraft Leasing

Air Lease Corporation strives to be a leader in the aircraft leasing market. This is evidenced by its substantial fleet and market positioning. As of September 30, 2024, the company owned a fleet of 485 aircraft, with a net book value of approximately $27.9 billion, reflecting a 6.3% increase from $26.2 billion at the end of 2023. The company has commitments to purchase 287 aircraft from major manufacturers like Airbus and Boeing, with an estimated aggregate commitment of $18.2 billion.

Core Component 2: Commitment to Quality

Quality is integral to Air Lease Corporation's mission. The company focuses on leasing modern and fuel-efficient aircraft, ensuring high standards of performance and customer satisfaction. As of September 30, 2024, the weighted average age of the fleet was 4.6 years with a weighted average remaining lease term of 7.1 years. The company maintains a lease utilization rate of 100%, indicating effective management of its fleet.

Core Component 3: Customer-Centric Service

Air Lease Corporation is dedicated to providing exceptional service to its global customer base, which includes 117 airlines across 59 countries. The company recorded $625.2 million in rental revenue for the three months ended September 30, 2024, a slight increase from $604.0 million in the same period of 2023. This growth demonstrates the effectiveness of their customer service approach, which is centered on meeting the needs of airlines through tailored leasing solutions.

Air Lease Corporation's mission statement and its commitment to leadership, quality, and customer service are reflected in its robust financial performance and strategic initiatives aimed at fostering growth in the aircraft leasing industry.

Vision Statement of Air Lease Corporation (AL)

Vision Statement of Air Lease Corporation (AL)

As of 2024, Air Lease Corporation (AL) aims to be the leading global aircraft leasing company, focusing on providing modern, fuel-efficient aircraft to airlines worldwide. This vision reflects the company's commitment to sustainability, customer service, and financial performance.

Air Lease Corporation envisions itself as a leader in the global aircraft leasing market. As of September 30, 2024, the company's owned fleet consists of 485 aircraft with a net book value of $27.9 billion, up from $26.2 billion at the end of 2023, highlighting its growth and market presence.

The company is dedicated to maintaining one of the youngest fleets in the industry. The weighted average age of its fleet is 4.6 years as of September 30, 2024. This strategy not only enhances operational efficiency but also reduces environmental impact, aligning with the increasing demand for sustainability in aviation.

Air Lease Corporation's vision includes a strong focus on customer satisfaction. The company serves a globally diversified customer base comprised of 117 airlines across 59 countries. The commitment to customer service is evident in its 100% lease utilization rate for the three months ended September 30, 2024.

AL emphasizes financial stability as a core component of its vision. The company ended the third quarter of 2024 with total debt outstanding of $20.3 billion, of which 97.3% was unsecured. This strong financial position allows for strategic investments in aircraft and supports the company's growth initiatives.

As of September 30, 2024, Air Lease Corporation has placed 100% and 95% of its committed orderbook on long-term leases for aircraft delivering through the end of 2025 and 2026, respectively. This proactive approach ensures a steady revenue stream and supports long-term growth.

Air Lease Corporation aims to create sustainable long-term shareholder value through its capital allocation strategy, which prioritizes investing in modern aircraft, maintaining an investment-grade balance sheet, and returning excess cash to shareholders. As of September 30, 2024, the company had declared quarterly cash dividends of $0.22 per share for its Class A common stock.

In summary, Air Lease Corporation's vision for 2024 focuses on global leadership, a modern fleet, customer satisfaction, financial strength, and shareholder value, positioning the company for future success in the aircraft leasing industry.

Core Values of Air Lease Corporation (AL)

Integrity

Integrity is a cornerstone value at Air Lease Corporation (ALC). It emphasizes the importance of honesty and ethical conduct in all business dealings.

ALC demonstrates its commitment to integrity through transparent financial reporting and compliance with regulatory standards. The company adheres to strict governance practices, ensuring that all financial disclosures are accurate and timely. For instance, ALC reported a net income attributable to common stockholders of $91.6 million for the third quarter of 2024, reflecting its commitment to transparency and ethical financial practices.

Customer Focus

Customer focus is vital for ALC, driving the company to meet the needs of its diverse global clientele. The company serves 117 airlines across 59 countries as of September 30, 2024, showcasing its commitment to understanding and addressing customer demands.

ALC's customer-centric approach is evident in its leasing strategies, where it placed 95% of its committed aircraft orderbook on long-term leases for deliveries through 2026. This ensures that customers have access to modern, efficient aircraft tailored to their operational needs.

Innovation

Innovation is a key value that drives ALC to adopt advanced technologies and practices in aircraft leasing. The company continually invests in modern, fuel-efficient aircraft, enhancing its fleet's competitiveness and sustainability.

As of September 30, 2024, ALC had a fleet with a weighted average age of 4.6 years and a total net book value of $27.9 billion, reflecting its focus on maintaining a young and technologically advanced fleet. The commitment to innovation is also underscored by the company's ongoing negotiations for 287 new aircraft from Airbus and Boeing, with an estimated aggregate commitment of $18.2 billion.

Collaboration

Collaboration is fundamental to ALC's operations, fostering a culture of teamwork both internally and with external partners. The company collaborates with various stakeholders, including aircraft manufacturers and financial institutions, to optimize its leasing operations.

As of September 30, 2024, ALC's unsecured revolving credit facility was syndicated across 52 financial institutions, illustrating its collaborative approach to financing. This strategy not only diversifies funding sources but also strengthens relationships within the aviation industry.

Excellence

Excellence is a core value that drives ALC to achieve high standards in all aspects of its business. The company emphasizes operational efficiency, customer service, and financial performance.

ALC's strong lease utilization rate of 100% for the third quarter of 2024 demonstrates its operational excellence. Additionally, the company recorded total revenues of $690.2 million for the quarter, reflecting its success in maximizing fleet performance and customer satisfaction.

Updated on 16 Nov 2024

Resources:

1. Air Lease Corporation (AL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Air Lease Corporation (AL)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Air Lease Corporation (AL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.