LOS ANGELES, CA - Air Lease Corporation (NYSE:AL) has announced uncertainty regarding the delivery schedule of Boeing aircraft following a labor strike at The Boeing Company (NYSE:BA). The strike, which commenced on September 13, 2024, has raised concerns about potential delays in Air Lease's Boeing order book.
The company, in its latest 8-K filing with the Securities and Exchange Commission today, disclosed that it cannot currently estimate the impact of the strike on its capital expenditures or when it will receive the remaining seven Boeing aircraft scheduled for delivery in 2024. Prior to the strike, Air Lease had taken delivery of two Boeing 737 MAX aircraft and three Boeing 787 aircraft during the third quarter of 2024.
Air Lease's 8-K filing follows its August 1, 2024, 10-Q filing, which had projected the receipt of 12 Boeing aircraft by year-end, including five Boeing 737 MAX and seven Boeing 787 models.
The company has expressed that the duration of the labor strike and its implications on Boeing's ability to deliver aircraft are currently unknown. This uncertainty extends to the potential financial impact on Air Lease, as the company had expected the delivery of these aircraft to contribute to its operations for the remainder of the year.
This news is based on a press release statement and is a developing story as Air Lease Corporation and its investors await further information on the resolution of the Boeing labor strike and its subsequent effects on aircraft deliveries.
In other recent news, Air Lease Corporation (ALC) announced its second quarter 2024 earnings, reporting revenues of $667 million and diluted earnings per share of $0.81. Despite challenges such as OEM delivery delays and lower end-of-lease revenues, ALC maintains optimism for its long-term financial performance.
The company's forward order book is fully placed through 2025, and it anticipates full-year 2024 aircraft deliveries to be between $4.5 billion and $5.5 billion. The company purchased 13 new aircraft and sold 11, resulting in a shortfall of $600 million in deliveries. However, ALC maintains a 100% utilization rate and expects to benefit from potential Federal Reserve rate cuts.
In terms of future expectations, the company anticipates higher lease rates on delivered aircraft due to advanced lease signings and sees strong demand for its fleet and order book. Despite the potential impact of a Boeing strike on future delivery estimates, ALC remains proactive and committed to long-term growth.
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