Air Lease's quarterly profit, revenue jump on robust aircraft leasing demand

By Dan Catchpole

May 5 (Reuters) - Air Lease Corp AL.N on Monday reported higher-than-expected quarterly revenues, as aircraft lessors benefitted from high demand for commercial jets from airlines despite tariff concerns.

The Los Angeles-based company posted $738 million in first-quarter revenues compared to analysts' expectations of $710 million, according to LSEG.

Planemakers have not been able to keep up with demand for new aircraft due to persistent supply-chain disruptions and other challenges.

Tariffs imposed by U.S. President Donald Trump have created new challenges for U.S.-based planemakers and their suppliers, which could prolong the imbalance of demand exceeding supply for new jetliners, Air Lease CEO John Plueger said.

Plueger cautioned that the tariffs could encourage U.S. aerospace companies to move some production overseas, counter to Trump's stated goal of bolstering domestic manufacturing.

China has imposed stiff reciprocal tariffs, and Chinese airlines have stopped taking delivery of new Boeing BA.N jetliners, leaving dozens of new or nearly complete airplanes in limbo.

Air Lease Corp would consider acquiring some of those aircraft "given the right deal," Plueger told financial analysts during an earnings conference call on Monday.

Air Lease has little to no exposure to the burgeoning trade war between the two countries.

Prolonged delivery timelines for new planes due to production setbacks at Boeing and Airbus AIR.PA have limited lessors' ability to fully capitalize on the booming market.

Thirty of 131 Airbus A320neos and A321neos in Air Lease's order book have been pushed back by a year or more through 2029, according to the company's earnings reports.

Shares of Air Lease were up 2.6% after market close.

The company reported net income of $364.8 million, or $3.26 per share, compared with $97.4 million, or $0.87 per share, a year earlier.

Net income attributable to common stockholders rose compared to the prior year mainly due to higher revenue and a $332 million net gain from settling insurance claims for aircraft held in Russia since the West imposed sanctions in 2022, the company said.