Air Lease has reported a year-to-date rise in shareholder profit of 212.8%, bolstering its valuation ahead of a $7.4bn buyout.
The California-based lessor reported a net income attributable to common stockholders of $874.2 million during the first nine months of 2025, up from $279.5 million during the same period last year.
Shareholder profit growth during the third quarter was equally impressive, rising 47.8% year over year to $135.4 million.
Diluted earnings per share (EPS) came in at $1.21 for the third quarter, rising from $0.82 in the same period last year - an increase of 47.6%.
The substantial increase in both quarterly and year-to-date shareholder profit was attributed to higher rental revenues and a $60 million windfall from the settlement of insurance claims related to aircraft detained in Russia.
Air Lease has now recovered 104% of its Russian fleet that was written off in March 2022 at the onset of the war in Ukraine.
During the third quarter, the company took delivery of 13 aircraft from its orderbook, representing $685 million in aircraft investments, ending the period with 503 aircraft in its owned fleet and over $33bn in total assets.
Air Lease had $1.6bn of aircraft in its sales pipeline at the end of the quarter, with $1.3bn of aircraft subject to letters of intent and $342 million of flight equipment earmarked for sale.
The lessor has placed 100% and 96% of its expected orderbook on long-term leases for aircraft that will deliver through the end of 2026 and 2027 respectively, and it has placed approximately 64% of its entire orderbook delivering through 2031.
The company ended the quarter with $29.3bn in committed minimum future rental payments. This includes $19.6bn in contracted minimum rental payments on the aircraft in its existing fleet, and $9.7bn related to aircraft that will deliver during the remainder of 2025 through 2031.
Air Lease’s latest earnings will strengthen the company’s position ahead of its planned acquisition by Sumisho Air Lease Corporation, a newly-formed Designated Activity Company (DAC) that will be based in Dublin.
Sumisho will be owned by Sumitomo Corporation, SMBC Aviation Capital, and affiliates of Apollo Global Management and Brookfield Asset Management.
Under the terms of the agreement, Air Lease Class A common stockholders will be entitled to receive $65.00 per share, without interest and less any applicable withholding taxes.
The valuation of $7.4bn, including debt obligations of approximately $28.2bn, is slightly above the company’s current valuation.
On Monday (November 3), Air Lease shares closed at $63.86 - a slight discount to the planned acquisition price.
The acquisition is expected to close in the first half of 2026 and is subject to regulatory approvals and approval by Air Lease’s Class A common stockholders.
Among Air Lease’s highlights of the third quarter, the company’s total rental of flight equipment revenue increased 9% to $681 million compared to the same period last year.
The increase was primarily driven by the continued growth of the Air Lease fleet and by an increase in its portfolio lease yield, the company said.
Gain on aircraft sales and trading and other income in the third quarter decreased by 32% to $44 million, primarily driven by lower sales activity.
Air Lease recorded $35 million in gains from the sale of five aircraft during the third quarter, compared to $50 million in gains from the sale of nine aircraft and two sales-type leases during last year’s third quarter.
At the end of the third quarter, the net book value of the Air Lease fleet increased to $29.5 billion, compared to $28.2 billion as of year-end 2024.