10-Q 1 al-20220930.htm 10-Q al-20220930
0001487712FALSE12/312022Q3http://www.airleasecorp.com/20220930#AircraftSalesTradingAndOtherMemberhttp://www.airleasecorp.com/20220930#AircraftSalesTradingAndOtherMemberhttp://www.airleasecorp.com/20220930#AircraftSalesTradingAndOtherMemberhttp://www.airleasecorp.com/20220930#AircraftSalesTradingAndOtherMemberP1Y00014877122022-01-012022-09-300001487712us-gaap:CommonClassAMember2022-01-012022-09-300001487712us-gaap:SeriesAPreferredStockMember2022-01-012022-09-3000014877122022-11-02xbrli:shares00014877122022-09-30iso4217:USD00014877122021-12-310001487712us-gaap:NoncumulativePreferredStockMember2021-12-31iso4217:USDxbrli:shares0001487712us-gaap:NoncumulativePreferredStockMember2022-09-300001487712us-gaap:CommonClassAMember2022-09-300001487712us-gaap:CommonClassAMember2021-12-310001487712us-gaap:CommonClassBMember2022-09-300001487712us-gaap:CommonClassBMember2021-12-3100014877122022-07-012022-09-3000014877122021-07-012021-09-3000014877122021-01-012021-09-300001487712us-gaap:PreferredStockMember2021-12-310001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-12-310001487712us-gaap:CommonClassBMemberus-gaap:CommonStockMember2021-12-310001487712us-gaap:AdditionalPaidInCapitalMember2021-12-310001487712us-gaap:RetainedEarningsMember2021-12-310001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-01-012022-03-310001487712us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100014877122022-01-012022-03-310001487712us-gaap:CommonClassAMemberus-gaap:RetainedEarningsMember2022-01-012022-03-310001487712us-gaap:CommonClassAMember2022-01-012022-03-310001487712us-gaap:RetainedEarningsMember2022-01-012022-03-310001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001487712us-gaap:PreferredStockMember2022-03-310001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-03-310001487712us-gaap:CommonClassBMemberus-gaap:CommonStockMember2022-03-310001487712us-gaap:AdditionalPaidInCapitalMember2022-03-310001487712us-gaap:RetainedEarningsMember2022-03-310001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100014877122022-03-310001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-04-012022-06-300001487712us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-3000014877122022-04-012022-06-300001487712us-gaap:CommonClassAMemberus-gaap:RetainedEarningsMember2022-04-012022-06-300001487712us-gaap:CommonClassAMember2022-04-012022-06-300001487712us-gaap:RetainedEarningsMember2022-04-012022-06-300001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001487712us-gaap:PreferredStockMember2022-06-300001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-06-300001487712us-gaap:CommonClassBMemberus-gaap:CommonStockMember2022-06-300001487712us-gaap:AdditionalPaidInCapitalMember2022-06-300001487712us-gaap:RetainedEarningsMember2022-06-300001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000014877122022-06-300001487712us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001487712us-gaap:CommonClassAMemberus-gaap:RetainedEarningsMember2022-07-012022-09-300001487712us-gaap:CommonClassAMember2022-07-012022-09-300001487712us-gaap:RetainedEarningsMember2022-07-012022-09-300001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001487712us-gaap:PreferredStockMember2022-09-300001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-09-300001487712us-gaap:CommonClassBMemberus-gaap:CommonStockMember2022-09-300001487712us-gaap:AdditionalPaidInCapitalMember2022-09-300001487712us-gaap:RetainedEarningsMember2022-09-300001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001487712us-gaap:PreferredStockMember2020-12-310001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2020-12-310001487712us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-12-310001487712us-gaap:AdditionalPaidInCapitalMember2020-12-310001487712us-gaap:RetainedEarningsMember2020-12-310001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100014877122020-12-310001487712us-gaap:PreferredStockMember2021-01-012021-03-310001487712us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100014877122021-01-012021-03-310001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-01-012021-03-310001487712us-gaap:CommonClassAMemberus-gaap:RetainedEarningsMember2021-01-012021-03-310001487712us-gaap:CommonClassAMember2021-01-012021-03-310001487712us-gaap:RetainedEarningsMember2021-01-012021-03-310001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001487712us-gaap:PreferredStockMember2021-03-310001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-03-310001487712us-gaap:CommonClassBMemberus-gaap:CommonStockMember2021-03-310001487712us-gaap:AdditionalPaidInCapitalMember2021-03-310001487712us-gaap:RetainedEarningsMember2021-03-310001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100014877122021-03-310001487712us-gaap:PreferredStockMember2021-04-012021-06-300001487712us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000014877122021-04-012021-06-300001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-04-012021-06-300001487712us-gaap:CommonClassAMemberus-gaap:RetainedEarningsMember2021-04-012021-06-300001487712us-gaap:CommonClassAMember2021-04-012021-06-300001487712us-gaap:RetainedEarningsMember2021-04-012021-06-300001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001487712us-gaap:PreferredStockMember2021-06-300001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-06-300001487712us-gaap:CommonClassBMemberus-gaap:CommonStockMember2021-06-300001487712us-gaap:AdditionalPaidInCapitalMember2021-06-300001487712us-gaap:RetainedEarningsMember2021-06-300001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000014877122021-06-300001487712us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-07-012021-09-300001487712us-gaap:CommonClassAMemberus-gaap:RetainedEarningsMember2021-07-012021-09-300001487712us-gaap:CommonClassAMember2021-07-012021-09-300001487712us-gaap:RetainedEarningsMember2021-07-012021-09-300001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001487712us-gaap:PreferredStockMember2021-09-300001487712us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-09-300001487712us-gaap:CommonClassBMemberus-gaap:CommonStockMember2021-09-300001487712us-gaap:AdditionalPaidInCapitalMember2021-09-300001487712us-gaap:RetainedEarningsMember2021-09-300001487712us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-3000014877122021-09-30al:aircraft0001487712us-gaap:SeniorNotesMember2022-09-300001487712us-gaap:SeniorNotesMember2021-12-310001487712al:UnsecuredTermFinancingMember2022-09-300001487712al:UnsecuredTermFinancingMember2021-12-310001487712us-gaap:RevolvingCreditFacilityMember2022-09-300001487712us-gaap:RevolvingCreditFacilityMember2021-12-310001487712us-gaap:UnsecuredDebtMember2022-09-300001487712us-gaap:UnsecuredDebtMember2021-12-310001487712al:TermLoanMember2022-09-300001487712al:TermLoanMember2021-12-310001487712al:ExportCreditFinancingMember2022-09-300001487712al:ExportCreditFinancingMember2021-12-310001487712us-gaap:SecuredDebtMember2022-09-300001487712us-gaap:SecuredDebtMember2021-12-310001487712us-gaap:SeniorNotesMemberal:MediumTermNoteProgramMember2022-09-300001487712al:MediumTermNoteProgramDue2027Memberus-gaap:SeniorNotesMember2022-09-30xbrli:pure0001487712us-gaap:SeniorNotesMemberal:MediumTermNoteProgramDue2032Member2022-09-300001487712us-gaap:RevolvingCreditFacilityMember2022-05-050001487712us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-09-300001487712us-gaap:RevolvingCreditFacilityMember2022-01-012022-09-300001487712us-gaap:RevolvingCreditFacilityMember2022-06-300001487712us-gaap:SubsequentEventMember2022-11-030001487712us-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:SubsequentEventMemberal:SyndicatedUnsecuredRevolvingCreditFacilityMatureOn5May2026Member2022-11-030001487712al:SyndicatedUnsecuredRevolvingCreditFacilityMatureOn5May2025Memberus-gaap:DebtInstrumentRedemptionPeriodTwoMemberus-gaap:SubsequentEventMember2022-11-030001487712al:SyndicatedUnsecuredRevolvingCreditFacilityMatureOn5May2023Memberus-gaap:DebtInstrumentRedemptionPeriodThreeMemberus-gaap:SubsequentEventMember2022-11-030001487712al:OtherDebtFinancingsMember2022-09-300001487712al:OtherDebtFinancingsMember2021-12-310001487712us-gaap:FlightEquipmentMember2021-12-310001487712us-gaap:FlightEquipmentMember2022-01-012022-09-300001487712us-gaap:FlightEquipmentMember2022-09-300001487712us-gaap:FlightEquipmentMember2022-01-012022-03-310001487712us-gaap:SubsequentEventMember2022-10-310001487712al:AirbusA220100300Member2022-01-012022-09-300001487712al:AirbusA320321NEOMember2022-01-012022-09-300001487712al:A330900NeoMember2022-01-012022-09-300001487712al:AirbusA3509001000Member2022-01-012022-09-300001487712al:AirbusA350FMember2022-01-012022-09-300001487712al:B73789MAXMember2022-01-012022-09-300001487712al:B787910Member2022-01-012022-09-300001487712al:AircraftsMember2022-01-012022-09-300001487712al:AircraftsMember2022-09-300001487712al:AircraftsMember2021-12-31al:class_of_stock0001487712us-gaap:CommonStockMember2022-01-012022-09-300001487712us-gaap:CommonStockMember2022-07-012022-09-300001487712us-gaap:CommonStockMember2021-01-012021-09-300001487712us-gaap:CommonStockMember2021-07-012021-09-300001487712us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001487712us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001487712us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2022-09-300001487712us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2021-12-310001487712us-gaap:FairValueInputsLevel2Member2022-09-300001487712us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-09-300001487712us-gaap:FairValueInputsLevel2Member2021-12-310001487712us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-3100014877122022-04-300001487712us-gaap:SeriesAPreferredStockMember2022-09-300001487712us-gaap:SeriesAPreferredStockMember2021-12-310001487712us-gaap:SeriesAPreferredStockMember2021-01-012021-12-310001487712us-gaap:SeriesBPreferredStockMember2022-09-300001487712us-gaap:SeriesBPreferredStockMember2021-12-310001487712us-gaap:SeriesBPreferredStockMember2022-01-012022-09-300001487712us-gaap:SeriesBPreferredStockMember2021-03-022021-12-310001487712us-gaap:SeriesCPreferredStockMember2022-09-300001487712us-gaap:SeriesCPreferredStockMember2021-12-310001487712us-gaap:SeriesCPreferredStockMember2022-01-012022-09-300001487712us-gaap:SeriesCPreferredStockMember2021-10-132021-12-310001487712us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SeriesAPreferredStockMember2022-01-012022-09-300001487712us-gaap:SeriesBPreferredStockMemberus-gaap:UsTreasuryUstInterestRateMember2022-01-012022-09-300001487712us-gaap:SeriesCPreferredStockMemberus-gaap:UsTreasuryUstInterestRateMember2022-01-012022-09-300001487712al:EquityIncentivePlan2010Member2014-05-072014-05-070001487712al:EquityIncentivePlan2010Member2022-09-300001487712us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-30al:criteria0001487712us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001487712us-gaap:ShareBasedCompensationAwardTrancheTwoMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001487712us-gaap:ShareBasedCompensationAwardTrancheThreeMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001487712us-gaap:EmployeeStockOptionMember2022-09-300001487712us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001487712us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001487712us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001487712us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001487712al:RestrictedStockWithTotalShareholderReturnConditionsMember2022-01-012022-09-300001487712al:RestrictedStockUnitsRSUsBookValueMember2022-01-012022-09-300001487712us-gaap:RestrictedStockUnitsRSUMember2021-12-310001487712us-gaap:RestrictedStockUnitsRSUMember2022-09-30al:aircraft_management_platform0001487712al:ThunderboltPlatformMember2022-01-012022-09-300001487712al:BlackbirdCapitalILlcAndBlackbirdCapitalIiLlcMember2022-01-012022-09-300001487712us-gaap:FinancialInstitutionsBorrowerMember2022-01-012022-09-30al:joint_venture0001487712al:BlackbirdCapitalILlcAndBlackbirdCapitalIiLlcMember2022-09-300001487712al:BlackbirdCapitalILlcAndBlackbirdCapitalIiLlcMember2021-12-310001487712al:ThunderboltPlatformMemberal:AircraftHeldForSaleMember2022-09-30al:entity0001487712al:ThunderboltAircraftLeaseLimitedIiAndThunderboltAircraftLeaseLimitedIiiiMember2022-09-300001487712al:ThunderboltPlatformMember2022-09-300001487712al:ThunderboltPlatformMember2021-12-310001487712al:InvestmentsInManagedPlatformsMember2022-01-012022-03-310001487712al:InvestmentsInManagedPlatformsMember2022-04-012022-06-300001487712al:InvestmentsInManagedPlatformsMember2022-07-012022-09-300001487712us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMemberal:FourAircraftsMember2022-09-300001487712al:FourAircraftsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2022-09-300001487712al:AircraftMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2021-12-310001487712us-gaap:CommonClassAMemberus-gaap:SubsequentEventMember2022-11-022022-11-020001487712us-gaap:SeriesAPreferredStockMemberus-gaap:SubsequentEventMember2022-11-022022-11-020001487712us-gaap:SeriesBPreferredStockMemberus-gaap:SubsequentEventMember2022-11-022022-11-020001487712us-gaap:SeriesCPreferredStockMemberus-gaap:SubsequentEventMember2022-11-022022-11-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

OR

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from         to       

Commission file number 001-35121
AIR LEASE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware27-1840403
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
2000 Avenue of the Stars,Suite 1000N90067
Los Angeles,California
(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: (310) 553-0555

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common StockALNew York Stock Exchange
6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series AAL PRANew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐

1
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

At November 2, 2022, there were 110,892,097 shares of Air Lease Corporation’s Class A common stock outstanding.

2

Air Lease Corporation and Subsidiaries

Form 10-Q
For the Quarterly Period Ended September 30, 2022

TABLE OF CONTENTS
Page


3
NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q and other publicly available documents may contain or incorporate statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements appear in a number of places in this Form 10-Q and include statements regarding, among other matters, the state of the airline industry, including the impact of Russia’s invasion of Ukraine and the impact of sanctions imposed on Russia, our access to the capital markets, the impact of lease deferrals and other accommodations, aircraft delivery delays and other factors affecting our financial condition or results of operations. Words such as “can,” “could,” “may,” “predicts,” “potential,” “will,” “projects,” “continuing,” “ongoing,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and “should,” and variations of these words and similar expressions, are used in many cases to identify these forward-looking statements. Any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors that may cause our actual results, performance or achievements, or industry results to vary materially from our future results, performance or achievements, or those of our industry, expressed or implied in such forward-looking statements. Such factors include, among others:

•our inability to obtain additional capital on favorable terms, or at all, to acquire aircraft, service our debt obligations and refinance maturing debt obligations;
•increases in our cost of borrowing or changes in interest rates;
•our inability to generate sufficient returns on our aircraft investments through strategic acquisition and profitable leasing;
•the failure of an aircraft or engine manufacturer to meet its delivery obligations to us, including or as a result of technical or other difficulties with aircraft before or after delivery;
•the extent to which the Russian invasion of Ukraine and the impact of sanctions imposed by the United States, European Union, United Kingdom and others affect our business, including our efforts to pursue insurance claims to recover losses related to aircraft detained in Russia, the exclusion of Russia, Ukraine and Belarus from the insurance policies that we separately purchase for our owned fleet, and the ability of our lessees to comply with their obligations to maintain insurance policies that cover their operations;
•the extent to which the COVID-19 pandemic impacts our business;
•obsolescence of, or changes in overall demand for, our aircraft;
•changes in the value of, and lease rates for, our aircraft, including as a result of aircraft oversupply, manufacturer production levels, our lessees’ failure to maintain our aircraft, rising inflation, appreciation of the U.S. Dollar, and other factors outside of our control;
•impaired financial condition and liquidity of our lessees, including due to lessee defaults and reorganizations, bankruptcies or similar proceedings;
•increased competition from other aircraft lessors;
•the failure by our lessees to adequately insure our aircraft or fulfill their contractual indemnity obligations to us;
•increased tariffs and other restrictions on trade;
•changes in the regulatory environment, including changes in tax laws and environmental regulations;
•other events affecting our business or the business of our lessees and aircraft manufacturers or their suppliers that are beyond our or their control, such as the threat or realization of epidemic diseases, natural disasters, terrorist attacks, war or armed hostilities between countries or non-state actors; and
•any additional factors discussed under “Part I — Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2021, “Part II — Item 1A. Risk Factors,” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and other SEC filings, including future SEC filings.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. You are therefore cautioned not to place undue reliance on such statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not intend and undertake no obligation to update any forward-looking information to reflect actual results or events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
4
PART I—FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

Air Lease Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and par value amounts)

September 30, 2022December 31, 2021
(unaudited)
Assets
Cash and cash equivalents$1,101,844 $1,086,500 
Restricted cash15,124 21,792 
Flight equipment subject to operating leases28,656,269 27,101,808 
Less accumulated depreciation(4,727,410)(4,202,804)
23,928,859 22,899,004 
Deposits on flight equipment purchases1,493,041 1,508,892 
Other assets1,685,103 1,452,534 
Total assets$28,223,971 $26,968,722 
Liabilities and Shareholders’ Equity
Accrued interest and other payables$604,327 $611,757 
Debt financing, net of discounts and issuance costs18,769,057 17,022,480 
Security deposits and maintenance reserves on flight equipment leases1,235,704 1,173,831 
Rentals received in advance149,923 138,816 
Deferred tax liability936,526 1,013,270 
Total liabilities$21,695,537 $19,960,154 
Shareholders’ Equity
Preferred Stock, $0.01 par value; 50,000,000 shares authorized; 10,600,000 (aggregate liquidation preference of $850,000) shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively
$106 $106 
Class A common stock, $0.01 par value; 500,000,000 shares authorized; 110,892,097 and 113,987,154 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively
1,109 1,140 
Class B Non-Voting common stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding
— — 
Paid-in capital3,250,169 3,399,245 
Retained earnings3,274,113 3,609,885 
Accumulated other comprehensive loss2,937 (1,808)
Total shareholders’ equity$6,528,434 $7,008,568 
Total liabilities and shareholders’ equity$28,223,971 $26,968,722 

(See Notes to Consolidated Financial Statements)

5
Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME/(LOSS)
(In thousands, except share and per share amounts)


Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
(unaudited)
Revenues
Rental of flight equipment$541,397 $519,535 $1,653,223 $1,439,674 
Aircraft sales, trading and other19,937 4,974 62,469 51,539 
Total revenues561,334 524,509 1,715,692 1,491,213 
Expenses
Interest122,348 114,659 358,621 346,244 
Amortization of debt discounts and issuance costs13,162 12,571 39,772 37,109 
Interest expense135,510 127,230 398,393 383,353 
Depreciation of flight equipment242,503 224,960 713,095 651,742 
Write-off of Russian fleet— — 802,352 — 
Selling, general and administrative39,718 31,082 110,993 84,682 
Stock-based compensation expense5,764 6,692 9,799 18,800 
Total expenses423,495 389,964 2,034,632 1,138,577 
Income/(loss) before taxes137,839 134,545 (318,940)352,636 
Income tax (expense)/benefit(27,458)(27,208)76,606 (67,785)
Net income/(loss)$110,381 $107,337 $(242,334)$284,851 
Preferred stock dividends(10,425)(7,331)(31,275)(19,010)
Net income/(loss) attributable to common stockholders$99,956 $100,006 $(273,609)$265,841 
Other comprehensive income/(loss):
Foreign currency translation adjustment$21,481 $7,129 $27,811 $(943)
Change in fair value of hedged transactions(17,063)(7,874)(21,774)(1,677)
Total tax (expense)/benefit on other comprehensive income/loss(946)159 (1,292)560 
Other comprehensive income/(loss), net of tax3,472 (586)4,745 (2,060)
Total comprehensive income/(loss) attributable for common stockholders$103,428 $99,420 $(268,864)$263,781 
Earnings/(loss) per share of common stock:
Basic$0.90 $0.88 $(2.45)$2.33 
Diluted$0.90 $0.87 $(2.45)$2.32 
Weighted-average shares outstanding
Basic110,892,097 114,122,512 111,874,002 114,071,951 
Diluted111,090,133 114,381,621 111,874,002 114,415,169 
Dividends declared per share of common stock$0.185 $0.16 $0.555 $0.48 

(See Notes to Consolidated Financial Statements)

6
Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, except share and per share amounts)
Preferred StockClass A
Common Stock		Class B Non‑Voting
Common Stock		Accumulated Other
Comprehensive Income/(Loss)
(unaudited)SharesAmountSharesAmountSharesAmountPaid‑in
Capital		Retained
Earnings		Total
Balance at December 31, 202110,600,000 $106 113,987,154 $1,140 — $— $3,399,245 $3,609,885 $(1,808)$7,008,568 
Issuance of common stock upon vesting of restricted stock units— — 477,656 5 — — (3)— — 2 
Common stock repurchased— — (2,959,458)(30)— — (129,519)— — (129,549)
Stock-based compensation expense— — — — — — (2,523)— — (2,523)
Cash dividends (declared $0.185 per share of Class A common stock)
— — — — — — — (21,136)— (21,136)
Cash dividends (declared on preferred stock)— — — — — — — (10,425)— (10,425)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax— — — — — — — — 1,738 1,738 
Tax withholdings on stock-based compensation— — (188,093)(2)— — (8,095)— — (8,097)
Net loss— — — — — — — (468,993)— (468,993)
Balance at March 31, 202210,600,000 $106 111,317,259 $1,113 — $— $3,259,105 $3,109,331 $(70)$6,369,585 
Issuance of common stock upon vesting of restricted stock units— — 59,603 — — — — — — — 
Common stock repurchased— — (461,416)(4)— — (20,450)— — (20,454)
Stock-based compensation expense— — — — — — 6,558 — — 6,558 
Cash dividends (declared $0.185 per share of Class A common stock)
— — — — — — — (20,511)— (20,511)
Cash dividends (declared on preferred stock)— — — — — — — (10,425)— (10,425)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax— — — — — — — — (465)(465)
Tax withholdings on stock-based compensation— — (23,349)— — — (931)— — (931)
Net income— — — — — — — 116,277 — 116,277 
Balance at June 30, 202210,600,000 $106 110,892,097 $1,109 — $— $3,244,282 $3,194,672 $(535)$6,439,634 
Stock-based compensation expense— — — — — — 5,764 — — 5,764 
Cash dividends (declared 0.185 per share of Class A common stock)
— — — — — — — (20,515)— (20,515)
Cash dividends (declared on preferred stock)— — — — — — — (10,425)— (10,425)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax— — — — — — — — 3,472 3,472 
Tax withholdings on stock-based compensation— — — — — — 123 — — 123 
Net income— — — — — — — 110,381 — 110,381 
Balance at September 30, 202210,600,000 $106 110,892,097 $1,109 — $— $3,250,169 $3,274,113 $2,937 $6,528,434 
7
Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, except share and per share amounts)
Preferred StockClass A
Common Stock		Class B Non‑Voting
Common Stock		Accumulated Other
Comprehensive Income/(Loss)
(unaudited)SharesAmountSharesAmountSharesAmountPaid‑in
Capital		Retained
Earnings		Total
Balance at December 31, 202010,000,000 $100 113,852,896 $1,139 — $— $2,793,178 $3,277,599 $325 $6,072,341 
Issuance of preferred stock300,000 3 — — — — 295,446 — — 295,449 
Issuance of common stock upon exercise of options and vesting of restricted stock units— — 425,232 4 — — 1,437 — — 1,441 
Stock-based compensation expense— — — — — — 5,408 — — 5,408 
Cash dividends (declared $0.16 per share of Class A common stock)
— — — — — — — (18,259)— (18,259)
Cash dividends (declared on preferred stock)— — — — — — — (3,844)— (3,844)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax— — — — — — — — (1,247)(1,247)
Tax withholdings on stock-based compensation— — (157,266)(2)— — (7,167)— — (7,169)
Net income— — — — — — — 84,092 — 84,092 
Balance at March 31, 202110,300,000 $103 114,120,862 $1,141 — $— $3,088,302 $3,339,588 $(922)$6,428,212 
Issuance of preferred stock— — — — — — (19)— — (19)
Issuance of common stock upon vesting of restricted stock units— — 25,956 — — — — — — — 
Stock-based compensation expense— — — — — — 6,700 — — 6,700 
Cash dividends (declared $0.16 per share of Class A common stock)
— — — — — — — (18,263)— (18,263)
Cash dividends (declared on preferred stock)— — — — — — — (7,835)— (7,835)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax— — — — — — — — (227)(227)
Tax withholdings on stock-based compensation— — (5,715)— — — (275)— — (275)
Net income— — — — — — — 93,422 — 93,422 
Balance at June 30, 202110,300,000 $103 114,141,103 $1,141 — $— $3,094,708 $3,406,912 $(1,149)$6,501,715 
Stock-based compensation expense— — — — — — 6,692 — — 6,692 
Common stock repurchased— — (153,949)(1)— — (5,780)— — (5,781)
Cash dividends (declared $0.16 per share of Class A common stock)
— — — — — — — (18,263)— (18,263)
Cash dividends (declared on preferred stock)— — — — — — — (7,331)— (7,331)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax— — — — — — — — (586)(586)
Net income— — — — — — — 107,337 — 107,337 
Balance at September 30, 202110,300,000 $103 113,987,154 $1,140 — $— $3,095,620 $3,488,655 $(1,735)$6,583,783 

(See Notes to Consolidated Financial Statements)
8
Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Nine Months Ended
September 30,
20222021
(unaudited)
Operating Activities
Net (loss)/income$(242,334)$284,851 
Adjustments to reconcile net (loss)/income to net cash provided by operating activities:
Depreciation of flight equipment713,095 651,742 
Write-off of Russian fleet802,352 — 
Stock-based compensation expense9,799 18,800 
Deferred taxes(78,035)64,931 
Amortization of discounts and debt issuance costs39,772 37,109 
Amortization of prepaid lease costs34,734 33,603 
Gain on aircraft sales, trading and other activity(85,616)(1,184)
Changes in operating assets and liabilities:
Other assets(243,109)(148,982)
Accrued interest and other payables(8,354)(7,283)
Rentals received in advance16,259 (4,199)
Net cash provided by operating activities958,563 929,388 
Investing Activities
Acquisition of flight equipment under operating lease(2,166,317)(1,670,203)
Payments for deposits on flight equipment purchases(428,424)(303,856)
Proceeds from aircraft sales, trading and other activity42,043 2,042 
Acquisition of aircraft furnishings, equipment and other assets(162,897)(178,359)
Net cash used in investing activities(2,715,595)(2,150,376)
Financing Activities
Issuance of common stock upon exercise of options— 1,438 
Cash dividends paid on Class A common stock(62,738)(54,737)
Common shares repurchased(150,000)(5,780)
Net proceeds from preferred stock issuance— 295,428 
Cash dividends paid on preferred stock(31,275)(19,010)
Tax withholdings on stock-based compensation(8,903)(7,441)
Net change in unsecured revolving facilities1,570,000 — 
Proceeds from debt financings1,497,615 3,655,830 
Payments in reduction of debt financings(1,327,146)(2,585,652)
Debt issuance costs(5,855)(9,688)
Security deposits and maintenance reserve receipts308,637 112,155 
Security deposits and maintenance reserve disbursements(24,627)(25,654)
Net cash provided by financing activities1,765,708 1,356,889 
Net decrease in cash8,676 135,901 
Cash, cash equivalents and restricted cash at beginning of period1,108,292 1,757,767 
Cash, cash equivalents and restricted cash at end of period$1,116,968 $1,893,668 
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest, including capitalized interest of $29,335 and $38,265 at September 30, 2022 and 2021, respectively
$442,461 $428,349 
Cash paid for income taxes$5,808 $2,739 
Supplemental Disclosure of Noncash Activities
Buyer furnished equipment, capitalized interest and deposits on flight equipment purchases applied to acquisition of flight equipment$596,021 $663,072 
Cash dividends declared on common stock, not yet paid$20,515 $18,263 

(See Notes to Consolidated Financial Statements)
9
Air Lease Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)




Note 1.    Company Background and Overview

Air Lease Corporation (the “Company”, “ALC”, “we”, “our” or “us”) is a leading aircraft leasing company that was founded by aircraft leasing industry pioneer, Steven F. Udvar-Házy. The Company is principally engaged in purchasing the most modern, fuel-efficient, new technology commercial jet aircraft directly from aircraft manufacturers, such as The Boeing Company (“Boeing”) and Airbus S.A.S. (“Airbus”). The Company leases these aircraft to airlines throughout the world with the intention to generate attractive returns on equity. As of September 30, 2022, the Company owned 405 aircraft, managed 87 aircraft and had 412 aircraft on order with aircraft manufacturers. In addition to its leasing activities, the Company sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines and other investors. The Company also provides fleet management services to investors and owners of aircraft portfolios for a management fee.

Note 2.    Basis of Preparation and Critical Accounting Policies

The Company consolidates financial statements of all entities in which the Company has a controlling financial interest, including the accounts of any Variable Interest Entity in which the Company has a controlling financial interest and for which it is the primary beneficiary. All material intercompany balances are eliminated in consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

The accompanying unaudited Consolidated Financial Statements include all adjustments, consisting only of normal, recurring adjustments, which are in the opinion of management necessary to present fairly the Company’s financial position, results of operations and cash flows at September 30, 2022, and for all periods presented. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the operating results expected for the year ending December 31, 2022. These financial statements and related notes should be read in conjunction with the Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Note 3.    Debt Financing

The Company’s consolidated debt as of September 30, 2022 and December 31, 2021 is summarized below:

September 30, 2022December 31, 2021
(in thousands)
Unsecured
Senior notes $17,064,248 $16,892,058 
Term financings 186,775 167,000 
Revolving credit facility1,570,000 — 
        Total unsecured debt financing18,821,023 17,059,058 
Secured
Term financings 116,981 126,660 
Export credit financing 13,309 18,301 
        Total secured debt financing130,290 144,961 
Total debt financing 18,951,313 17,204,019 
Less: Debt discounts and issuance costs(182,256)(181,539)
Debt financing, net of discounts and issuance costs$18,769,057 $17,022,480 

Senior unsecured notes (including Medium-Term Note Program)

As of September 30, 2022, the Company had $17.1 billion in senior unsecured notes outstanding. As of December 31, 2021, the Company had $16.9 billion in senior unsecured notes outstanding.
10
Air Lease Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)




During the nine months ended September 30, 2022, the Company issued $1.5 billion in aggregate principal amount of senior unsecured notes comprised of (i) $750.0 million in aggregate principal amount of 2.20% Medium-Term Notes due 2027, and (ii) $750.0 million in aggregate principal amount of 2.875% Medium-Term Notes due 2032.

Unsecured revolving credit facility

As of September 30, 2022, the Company had $1.6 billion outstanding under its unsecured revolving credit facility (the “Revolving Credit Facility”). As of December 31, 2021, the Company did not have any amounts outstanding under its Revolving Credit Facility. Borrowings under the Revolving Credit Facility are used to finance the Company’s working capital needs in the ordinary course of business and for other general corporate purposes.

In April 2022, the Company amended and extended its Revolving Credit Facility through an amendment that, among other things, extended the final maturity date from May 5, 2025 to May 5, 2026, increased the total revolving commitments to approximately $7.0 billion as of May 5, 2022 and replaced LIBOR with Term SOFR as the benchmark interest rate and made certain conforming changes related thereto. As of September 30, 2022, borrowings under the Revolving Credit Facility accrued interest at Adjusted Term SOFR (as defined in the Revolving Credit Facility) plus a margin of 1.05% per year. The Company is required to pay a facility fee of 0.20% per year in respect of total commitments under the Revolving Credit Facility. Interest rate and facility fees are subject to increases or decreases based on declines or improvements in the credit ratings for the Company’s debt.

In June 2022, the Company increased the aggregate facility capacity by an additional $122.5 million and also extended the maturity of $125.0 million in commitments to May 5, 2026. As of November 3, 2022, the Company had total revolving commitments of approximately $7.1 billion. Lenders held revolving commitments totaling approximately $6.7 billion that mature on May 5, 2026, commitments totaling $32.5 million that mature on May 5, 2025 and commitments totaling $375.0 million that mature on May 5, 2023.

Other debt financings

From time to time, the Company enters into other debt financings such as unsecured term financings and secured term financings, including export credit. As of September 30, 2022, the outstanding balance on other debt financings was $317.1 million and the Company had pledged three aircraft as collateral with a net book value of $214.6 million. As of December 31, 2021, the outstanding balance on other debt financings was $312.0 million and the Company had pledged three aircraft as collateral with a net book value of $222.2 million.

Maturities

Maturities of debt outstanding as of September 30, 2022 are as follows:
 (in thousands)
Years ending December 31,
2022$683,152 
20232,621,611 
20242,863,800 
20252,409,553 
20264,953,021 
Thereafter 5,420,176 
Total$18,951,313 

11
Air Lease Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



Note 4.     Flight equipment subject to operating lease

The following table summarizes the activities for the Company’s flight equipment subject to operating lease for the nine months ended September 30, 2022:

(in thousands)
Net book value as of December 31, 2021$22,899,004 
Purchase of aircraft2,784,350 
Depreciation(713,095)
Sale of aircraft and transfers to net investments in sales-type leases(250,383)
Write-off of Russian fleet(791,017)
Net book value as of September 30, 2022$23,928,859 
Accumulated depreciation as of September 30, 2022$(4,727,410)

Write-off of Russian fleet

In response to the sanctions against certain industry sectors and parties in Russia, in March 2022, the Company terminated all of its leasing activities in Russia. While the Company maintains title to the aircraft, the Company determined that it is unlikely it will regain possession of the aircraft detained in Russia. As such, during the three months ended March 31, 2022, the Company recognized a loss from asset write-offs of its interests in owned aircraft detained in Russia, totaling approximately $791.0 million.

In October 2022, one Boeing 737-8 MAX aircraft that was detained in Russia was returned to the Company. The returned 737-8 MAX was not operating and had been in storage in Russia since the 737 MAX grounding. In the fourth quarter of 2022, the Company will record the aircraft in its owned fleet at fair value with a corresponding offset to the write-off line item in the income statement. At this time, the Company does not anticipate the return of any other aircraft detained in Russia.

As of November 3, 2022, 20 aircraft previously included in the Company’s owned fleet are still detained in Russia. The operators of these aircraft have continued to fly most of the aircraft notwithstanding the termination of leasing activities and the Company’s ongoing demands for the return of its assets. In June 2022, the Company submitted insurance claims to its insurers to recover its losses relating to the aircraft detained in Russia and is vigorously pursuing all available insurance claims. Collection, timing and amounts of any insurance recoveries remains uncertain at this time.

Note 5.    Commitments and Contingencies

Aircraft Acquisition

As of September 30, 2022, the Company had commitments to purchase 412 aircraft from Boeing and Airbus for delivery through 2028, with an estimated aggregate commitment of $26.2 billion.

The table is subject to change based on Airbus and Boeing delivery delays. As noted below, the Company expects delivery delays for some aircraft in its orderbook. The Company remains in discussions with Boeing and Airbus to determine the extent and duration of delivery delays; however, the Company is not yet able to determine the full impact of these delays.
12
Air Lease Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



Estimated Delivery Years
Aircraft Type20222023202420252026ThereafterTotal
Airbus A220-100/3004 13 25 20 12 — 74 
Airbus A320/321neo(1)
14 22 24 24 35 64 183 
Airbus A330-900neo3 6 4 — — — 13 
Airbus A350-900/10001 3 3 — — — 7 
Airbus A350F— — — — 2 5 7 
Boeing 737-8/9 MAX11 29 33 19 16 — 108 
Boeing 787-9/101 5 4 10 — — 20 
Total(2)
34 78 93 73 65 69 412 
(1) The Company’s Airbus A320/321neo aircraft orders include 26 long-range variants and 49 extra long-range variants.
(2) The table above reflects Airbus and Boeing aircraft delivery delays based on contractual documentation.

Pursuant to the Company’s purchase agreements with Boeing and Airbus, the Company agrees to contractual delivery dates for each aircraft ordered. These dates can change for a variety of reasons, however for the last several years, manufacturing delays have significantly impacted the planned purchases of the Company’s aircraft on order with Boeing and Airbus. The Company is currently experiencing delivery delays with both Boeing and Airbus aircraft.

The aircraft purchase commitments discussed above could also be impacted by cancellations. The Company’s purchase agreements with Boeing and Airbus generally provide each of the Company and the manufacturers with cancellation rights for delivery delays starting at one year after the original contractual delivery date, regardless of cause. In addition, the Company’s lease agreements generally provide each of the Company and the lessee with cancellation rights related to certain aircraft delivery delays that typically parallel the cancellation rights in the Company’s purchase agreements.

Commitments for the acquisition of these aircraft, calculated at an estimated aggregate purchase price (including adjustments for anticipated inflation) of approximately $26.2 billion as of September 30, 2022, are as follows:


Years ending December 31,
2022$2,230,839 
20235,385,941 
20245,877,320 
20254,606,225 
20263,683,009 
Thereafter 4,419,134 
Total $26,202,468 

The Company has made non-refundable deposits on flight equipment purchases of $1.5 billion as of September 30, 2022 and December 31, 2021, which are subject to manufacturer performance commitments. If the Company is unable to satisfy its purchase commitments, the Company may be forced to forfeit its deposits and may also be exposed to breach of contract claims by its lessees as well as the manufacturers.

Note 6.    Rental Income

As of September 30, 2022, minimum future rentals on non-cancellable operating leases of flight equipment in the Company’s owned fleet, which have been delivered as of September 30, 2022 are as follows:

13
Air Lease Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



Years ending December 31,
2022 (excluding the nine months ended September 30, 2022)
$