Air Lease delivers 12 new aircraft, reports $344 million Russia fleet settlement

LOS ANGELES - Aircraft leasing company Air Lease Corporation (NYSE:AL) delivered 12 new aircraft to customers and recognized a $344 million net benefit from insurance settlements related to its former Russian fleet during the second quarter of 2025, according to a company press release. The company’s stock is trading near its 52-week high of $60.41, having delivered impressive returns of 26% over the past six months, according to InvestingPro data.

The delivered aircraft included six Airbus A220s, one A321neo, two Boeing 737-8s, one Boeing 787-9, and two Boeing 787-10s. Aircraft investments for the quarter totaled approximately $890 million, with the majority occurring in the latter half of the period.

The company also sold four aircraft to third-party buyers during the quarter, generating proceeds of approximately $126 million.

As of June 30, Air Lease’s fleet consisted of 495 owned aircraft and 53 managed aircraft. The company has 241 new aircraft on order from Airbus and Boeing scheduled for delivery through 2031.

The $344 million net benefit came from settlements with certain insurers of insurance claims related to the company’s former Russian fleet, which had been affected by international sanctions following Russia’s invasion of Ukraine in 2022.

Air Lease Corporation, headquartered in Los Angeles, specializes in purchasing new commercial aircraft and leasing them to airline customers worldwide through customized leasing and financing solutions. The company has maintained dividend payments for 13 consecutive years, demonstrating consistent shareholder returns despite industry challenges.

In other recent news, Air Lease Corporation reported robust financial results, with earnings per share (EPS) of $1.51, significantly exceeding analysts’ expectations of $0.89. The company’s revenue also surpassed forecasts, reaching $738 million compared to the anticipated $713.85 million. This strong performance was driven by higher rental and aircraft sales revenues. Additionally, Air Lease received $112.4 million in insurance proceeds related to aircraft detained in Russia, contributing to a total recovery of $763.5 million against an initial write-off of $791 million.

Analysts have shown increased confidence in Air Lease’s prospects, with Citi upgrading the company’s stock rating from Neutral to Buy and raising the price target from $45 to $68. This adjustment reflects optimism about Air Lease’s new capital allocation strategy, which focuses on shareholder value through potential share buybacks and acquisitions. Similarly, TD Cowen raised its price target to $55, citing strong sales and earnings that exceeded expectations.

Despite higher-than-anticipated expenses, including a one-time retirement payout to Executive Chairman Steven Udvar-Házy, analysts view Air Lease’s overall performance positively. The company’s effective management and strategic focus on maintaining a young and efficient fleet have bolstered its financial health and market position. Air Lease anticipates $3-3.5 billion in new aircraft deliveries for 2025, with lease rates trending higher amid strong global demand for air travel.

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