Air Lease : 2025 Q1 Investor Presentation

Published: 2025-06-27 18:08:05 ET AL

Published on 06/27/2025 at 18:08

2025 | FIRST ǪUARTER

Air Lease is a $50+ billion aircraft leasing platform

$32

Billion

Total Assets

544

Aircraft

Owned and Managed

260

Aircraft

On Order1

$2G Billion

Committed Rentals2

$7.4

Billion

Liquidity3

G.0%

Adjusted Pre-tax ROE4

✓

Young Fleet

4.7 yrs. avg. fleet age, one of the youngest in

the industry

✓

100.0% Aircraft Utilization Rate in 1Ǫ 2025

✓

100% orderbook positions through 2026 on long-term leases5

✓

G7%

Unsecured debt

78%

Fixed rate debt

Investment Grade Rated

BBB

Stable

SGP

BBB

Stable

FITCH

KROLL

A-

Stable

All information per AL public filings as of March 31, 2025. $50+ billion leasing platform consists of $32.4 billion in assets, $16.6 billion in commitments to acquire aircraft, in addition to managed aircraft. 1 As of March 31, 2025, we had commitments to purchase 260 aircraft from Boeing and Airbus for delivery through 2031, with an estimated aggregate commitment of $16.6 billion. 2 Includes $18.9 billion in contracted minimum rental payments on the aircraft in our existing fleet and $10.3 billion in minimum future rental payments related to aircraft which will be delivered during the remainder of 2025 through 2031. 3 Available liquidity of $7.4 billion is comprised of unrestricted cash of $0.5 billion and available borrowing capacity under our committed unsecured revolving credit facility of $6.9 billion, net of $0.9 billion in commercial paper borrowings, as of March 31, 2025. 4 Adjusted Pre-Tax Return on Common Equity is calculated as trailing twelve month Adjusted Net Income Before Income Taxes divided by average common shareholders' equity. Adjusted Pre-Tax Return on Common Equity and Adjusted Net Income Before Income Taxes are non-GAAP financial measures. See appendix for a reconciliation to their most directly comparable GAAP measure. 5 We have placed 100% and 89% of our expected orderbook on long-term leases for aircraft delivering through the end of 2026 and 2027, respectively, and have placed approximately 58% of our entire orderbook.

AL seeks to purchase aircraft at sizable OEM discounts, reap benefits of long-term profitable leases, and monetize assets at optimal point in residual value cycle

All financial values are from Air Lease's inception. Aircraft purchases reflect historical net cash used in investing activities, adjusted for proceeds from aircraft sales, trading, and other activity, less deposits on flight equipment purchases.

1 Aircraft in our sales pipeline is as of March 31, 2025, and includes letters of intent and sale agreements signed through May 5, 2025. 2 Capital returned to shareholders includes common shareholder dividend distributions and common share repurchases.

Buy New Assets Direct from OEMs

Hold Assets for First Third of Useful Life

Sell Assets and Re-Invest Capital

$48+ billion

in aircraft purchases

$15+ billion

in operating cash flow

$G+ billion

in aircraft sales - $741m pipeline1

$770+ million

capital returned to shareholders2

Since Air Lease Went Public in 2011:

1ST ǪUARTER

Investor Presentation

Over time, our business has benefited from three key tailwinds

Passenger traffic has historically grown over time

✓

Shift to travel by air

Emerging middle class

Spending on experiences

(vs. goods)

Ease G affordability

of air travel

Airlines need to replace aging aircraft

✓

Aircraft reaching

25-year useful life

Airline preference to

operate young fleet:

fuel efficiency

operational reliability

maintenance costs

environmental concerns

Role of lessors has increased

✓

Aircraft lessors serve as large capital providers to the airlines

Less cash/financing

required

Key delivery positions

Fleet flexibility

Elimination of residual value risk for lessees

The expansion of the global middle class is expected to continue in the next two decades

By 2030, the middle class is expected to account for 68% of the total worldwide spending and represent some 4.8 billion people

By 2030, households around the world will spend an estimated

$G1 trillion. This is almost 50% higher than in 2020. Of the $100 trillion of consumer spending, 68% is expected to be spent by the lower-middle class (38%) and the upper-middle class (30%)

SPENDING GROUP

The growing middle class offers significant tailwinds to long-term air travel demand

Brookings Institution, "A long-term view of COVID-19's impact on the rise of the global consumer class," May 2021.

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040

Consumers have quickly returned to long-term trends; spending more on services over goods

US PERSONAL EXPENDITURES

$16.0

$14.0

$12.0

$ Trillions

$10.0

$8.0

$6.0

$4.0

$2.0

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

Jan-25

$0.0

US Personal Expenditures1

What percentage of travelers plan to

spend the same or more on travel

CONSUMER TRAVEL SPENDING PLANS3

77% of travelers surveyed plan on taking more or the

US UK

Growth of Service Industry2

50%

$0.3T

1G70

6G%

$14.2T

Ǫ1 2025

65%

64%

74%

67%

64%

65%

68%

64%

79%

62%

France Germany

Japan %

Korea

same number of international trips in 2025 vs. 2024.4

0% 20% 40% 60% 80% 100%

Consumers prefer travel and experiences over goods

1 US Personal Expenditures from St. Louis Federal Reserve data. 2 Growth of Service industry represents services consumption out of total US goods and services according to St. Louis Federal Reserve. 3 Criteo Spring 2025 Travel Pulse. 4 American Express Travel's 2025 Global Travel Trends Report.

Average Airfare between New York - London

$G,743

$7,G30

$6,127

$4,304

$3,G32

$3,8G7

$2,740

$1,542

$1,233

$G62

$G25

$8G4

$G87 $1,085

$72G

$885

$12,000

$10,000

$8,000

($USD in 2022)

$6,000

$4,000

$2,000

On a historical basis, current ticket prices remain a bargain

The Geography of Transport Systems, "Average Airfare between New York and London 1946-2015," https://transportgeography.org/contents/chapter5/air-transport/air-fare-new-york-london/, and Hopper Airfare index report 2018-2025, https://http://hopper.com/research. Prices reflect New York-London as available or US to Europe fares as a proxy, adjusted to 2025 prices.

1940 1950 1960 1970 1980 1990 2000 2010 2020 2030

Global RPKs Expected to Reach Record Highs in 2025

RPKs

Gulf Crisis

Financial Crisis

9/11 SARS

Financial Crisis

COVID

Pandemic

5% CAGR

Trendline

1 Global Pandemic

4 Recessions

2 Financial Crises

2 Gulf Wars

1 Oil Shock

1 Near Pandemic (SARS) 9/11 Attack

(trillions) 10.0

9.0

8.0

7.0

6.0

5.0

4.0

Asian

3.0

2.0

1.0

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025 E

0.0

IATA, ATAG, and ACI World-ICAO. As of March 2025.

Aircraft Over 20 Years Old Eligible for Retirement

Aircraft Type

Number of Aircraft

Number of Seats

737 Family

1,408

198,841

A320 Family

1,204

186,569

777

301

94,993

757

245

46,490

767

231

46,357

A330/A340

221

61,367

DC9/MD80/MD90/717

213

28,640

A3801

126

62,281

747

122

14,194

A300/A310

8,875

Totals

4,115

748,607

Percent of Total

16.G%

15.6%

REGIONAL SEAT CAPACITY REMOVED1

28%

23%

17%

North America

avg age: 14.1

Middle East G Africa

avg age: 14.6

Europe

avg age: 12.2

Latin America

~4,000 aircraft are immediately eligible for retirement based on age, potentially taking significant capacity out of regions including North America, the Middle East/Africa G Europe

Cirium as of May 19, 2025. Includes both in-service and stored aircraft from non-cargo airlines. 1 Includes all A380s over 10 years of age.

avg age: 11.8

Asia G Pacific

avg age: 10.5

Leasing Has Been Taking Market Share

Lessors provide significant value and stability to the aviation sector

Cirium as of May 12, 2025.

1G70

1G80

1GG0

2000

2025

2.2%

3.6%

17.2%

27.2%

50.6%

Benefits of Leasing

Less cash C financing required

Fleet

flexibility

Key delivery positions

Eliminate residual value risk for lessees

Growing Middle Class

Powerful middle class growth trends; 88% of next billion middle class entrants will be in Asia1

Experience vs. Goods Spending Habits

Shifting consumer spending habits globally driven by a prioritization of

services over goods and affordability/ease of air travel2

Gravitation Towards Leasing

Leasing share of market continues to grow; lessors taking >50% of new aircraft deliveries from Airbus C Boeing3

Environmental Initiatives

Introduction of new, more fuel-efficient aircraft critical to achieving carbon reduction initiatives

1 Brookings Institute, "The Unprecedented Expansion of the Global Middle Class", 2017. 2 US personal expenditure on services vs. goods according to St. Louis Federal Reserve. 3 Cirium as of May 12, 2025.

1ST ǪUARTER

Investor Presentation

Focus on young aircraft, holding an aircraft for the first

1/3 of its useful life

✓

Young Aircraft

Balanced Portfolio ✓

A diverse portfolio of twin- and single-aisle airframes from Boeing and Airbus powered by GE, CFM, Pratt G Whitney, Rolls-Royce, and IAE engines

Flexibility embedded in purchase agreements with Boeing G Airbus

✓

Flexibility

Close monitoring of customer receivables to ensure problems are proactively addressed

✓

Proactivity

Aircraft approaching maturity are placed with follow-on lessees 18-36 months in advance of delivery

✓

Proactive Placements

Staggered and balanced lease maturities by year

✓

Laddered Lease Maturities

Targeting attractive gains at end of holding period, 8-10% historical gain on sale margin

✓

Strong Sale Gains

AL's management team has helped launch a number of aircraft types and associated engine designs

✓

AL is able to deliver cost advantages by negotiating with manufacturers for competitive pricing

Airframe Partners Engine Partners

REGION1

MANUFACTURERS2

AIRCRAFT SIZE2

72%  Single Aisle

28%  Twin Aisle

41%

Europe

56%  Airbus

36%

Asia Pacific

44%  Boeing

10%

Central C S. America C Mexico

<1%  Embraer

Middle East C Africa

U.S. C Canada

Fleet Metrics3

✓

487 owned aircraft and 57 managed aircraft

$28.6 billion net book value of flight equipment subject to operating lease

4.7 years weighted average fleet age4

7.2 years weighted average remaining lease term4

$29.2 billion in committed minimum future rentals5

Diversified customer base with 117 airlines in 57 countries

1 As a percentage of net book value of ALC's owned fleet as of March 31, 2025. 2 Reflects number of owned aircraft as of March 31, 2025. 3 As of March 31, 2025. Our owned fleet count included 16 aircraft classified as flight equipment held for sale and 16

aircraft classified as net investments in sales-type leases, respectively, which are all included in Other assets on the Consolidated Balance Sheet. 4 Weighted average based on net book value of our flight equipment subject to operating lease. 5 Includes 17

$18.9 billion in contracted minimum rental payments on the aircraft in our existing fleet and $10.3 billion in minimum future rental payments related to aircraft which will be delivered during the remainder of 2025 through 2031.

AL executive management maintains long-standing relationships with over 200 airlines worldwide

Relationships span 70 countries with limited exposure to any one airline

Globally diverse placements mitigate financial and concentration risk

As of March 31, 2025.

Security packages are a supplement to asset mobility and, in the event of an airline bankruptcy or aircraft repossession, these deposits/reserves may be recognized into income to offset any amounts in arrears

Components of typical Air Lease security packages

Rent paid in advance

Cash Security Deposits

Generally collected monthly based on reports of usage by the lessee or collected as fixed monthly rates

Cash Maintenance Reserves

Lessee is contractually responsible for all operating costs including insurance, taxes, import C export fees, and aircraft maintenance

Triple Net Leases

Air Lease's aircraft assets have a broad installed operator base which is the basis of our asset liquidity

4,287

4G8

730

75G

236

Total # in Service1

Unique Operators1

Our orderbook of modern, fuel-efficient aircraft serves us well with our global airline customer base

A320

Family

737

Family

A220

Family

A350

Family

787

Family

A330

Family

3G3

372

13G

10,037

7,723

G10

1,326

1,177

1,321

7,262

# of aircraft in backlog2

1 Cirium as of May 9, 2025. A220 Total # in service includes aircraft in service, on order and in storage. Operators include only announced customers. Operators and Total # in service for A320 Family and 737 Family includes in service passenger aircraft plus passenger aircraft below the age of 20 currently in storage. A330 Operators and Total # in service includes in service aircraft and aircraft below the age of 20 currently in storage. A350 Operators and Total # in service includes in service aircraft plus aircraft on order and in storage. 787 Operators and Total # in service includes in service aircraft plus aircraft in storage. 2 Airbus backlog data as of March 31, 2025. Boeing as of April 30, 2025. A350 family backlog includes A350F. Please note that Air Lease owns specific variants within each aircraft family.

Contractual Aircraft Deliveries1

Count

Type

Airbus A220-100/300

131

Airbus A320/321neo

Airbus A330-900neo

Airbus A350F

Boeing 737 MAX

Boeing 787-9/10

260 Total

2025 2026 2027 2028 2029 Thereafter

We view our orderbook as a source of value that provides visibility into the future

We believe our coveted delivery positions give us a competitive advantage with airline customers

We can exercise flexibility with delivery position commitments and timing

We typically place aircraft 18-36 months prior to delivery and are currently 100% placed through 2026

AL public filings as of March 31, 2025. The Company's contractual delivery commitment schedule is subject to a number of factors outside its control, including ongoing delays by Airbus and Boeing for certain aircraft, and the Company cannot guarantee

delivery of any particular aircraft at any specific time notwithstanding its contractual delivery commitment schedule. 1 As of March 31, 2025, we had commitments to purchase 260 aircraft from Boeing and Airbus for delivery through 2031, with an estimated 21

aggregate commitment of $16.6 billion. We have placed 100% and 89% of our expected orderbook on long-term leases for aircraft delivering through the end of 2026 and 2027, respectively, and have placed approximately 58% of our entire orderbook.

Breakdown of AL's $16.6 billion orderbook1

~$3B Boeing Orders

787 Volume Order

737 MAX Volume Order

787-10 Launch Customer

~$7B COVID-Era Airbus Orders

COVID-era Pricing

A321neo Volume Order

~$4B Airbus Orders

A321neo LR Launch Customer

A321 XLR Launch Customer

A220 HGW Re-launch Customer

~$3B COVID-Era Boeing Orders

COVID-era Pricing

787 Volume Order

AL has strategically built its orderbook by exercising price discipline designed to create longterm value for shareholders

1 As of March 31, 2025.

737 MAX Volume Order

Placement Count and Placement % by Expected Delivery Year1

30 100%

100%

75%

33%

Our orderbook remains highly in demand, resulting in 100% of expected aircraft deliveries through 2026 placed on long-term leases

1 As of March 31, 2025, AL has commitments to purchase 260 aircraft from Airbus and Boeing for delivery through 2031, with an estimated aggregate commitment of $16.6 billion.

2025 2026 2027 2028 2029 Thereafter

Number of lease maturities per year

2025 2026 2027 2028 2029

Few lease expirations in the near-term and all are highly manageable relative to the existing fleet

As of December 31, 2024. Assumes no aircraft sales or lease extensions.

1ST ǪUARTER

Investor Presentation

TOTAL ASSETS ($B)

$25.2

$27.0

$28.4

$21.7

$35 B

$30 B

$25 B

$20 B

$15 B

$10 B

$5 B

$0 B

$30.5 $32.3 $32.4

UNENCUMBERED ASSETS1 ($B)

$27.0 $28.6

$23.7

$25.6

$20.2

$35 B

$30 B

$25 B

$20 B

$15 B

$10 B

$5 B

$0 B

$30.2 $30.3

2019 2020 2021 2022 2023 2024 Ǫ1 2025 2019 2020 2021 2022 2023 2024 Ǫ1 2025

Owned 2G2 332 382

417

463

474

487

TOTAL REVENUE ($B)

$3.0 B

$2.7

Fleet Count

$2.5 B

$2.0 B

$1.5 B

$1.0 B

$0.5 B

$0.0 B

$2.0

$2.1

$2.3

$0.7

Retained earnings have built shareholders' equity and strengthened our high-quality balance sheet

1 Comprised of unrestricted cash plus unencumbered flight equipment (calculated as flight equipment subject to operating leases net of accumulated depreciation, less net book value of aircraft pledged as collateral) plus deposits on flight equipment purchases plus certain other assets. 2 Adjusted Net Income Before Income Taxes is a non-GAAP financial measure. See appendix for reconciliations to its most directly comparable GAAP measure.

2019 2020 2021 2022 2023 2024 Ǫ1 2025

ADJUSTED NET INCOME2 ($M)

$781

$692

$734

$660

$590

$574

$169

$800 M

$600 M

$400 M

$200 M

$0 M

2019 2020 2021 2022 2023 2024 Ǫ1 2025

2024 Portfolio Breakdown by Yield 2026 Portfolio Breakdown by Yield1

High

Low

Over the next two years, AL portfolio yield will benefit, in part, from ~$5B of existing low yield aircraft rolling off or seasoning

1 2026 fleet metrics include management assumptions for aircraft deliveries, sales and follow-on leases terms, which are subject to change.

Mid

High

Low

Mid

AL expects portfolio yield to benefit from the below factors

These are partially offset by sales of current generation technology aircraft which have higher yields

Increasing Yield on New Deliveries G Extensions

Expecting 150-200 bps improvement in portfolio yield from 2025 through the end of 2028

New deliveries and extensions re-price aircraft leases to elevated market rates

Roll-off of COVID-era Leases

Leases C extensions signed during COVID are rolling-off with assets placed on higher yielding leases

Natural Seasoning of the Portfolio

As aircraft age, book value depreciates against a fixed lease rate, naturally increasing yields

Utilization and Forward Placements

Consistent ~90%+ 2-year forward orderbook

placement

Strong Liquidity

Maintain robust liquidity from a variety of sources

Balanced

Lease Expirations Reduce re-pricing risk through well-balanced

lease maturities

Staggered

Debt Maturities

Air Lease's consistent financial performance is driven by several key fundamentals

Limit near-term maturity towers and issue diversified mix of tenors

Average GG.G% utilization since inception in 2010

COVID-1G

100%

90%

Utilization

80%

70%

60%

50%

Air Lease management team has maintained a strong utilization track record

61 consecutive quarters of utilization above GG%

37 quarters of perfect 100% utilization

Utilization is calculated based on the number of days each aircraft was subject to a lease or letter of intent during the period, weighted by the net book value of the aircraft.

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Disclaimer

Air Lease Corporation published this content on June 27, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 27, 2025 at 22:07 UTC.