Air Lease Sees First Quarter Profit Dip

US-based aircraft lessor Air Lease reported a slight drop in net income as depreciation costs increased.

Net income for the first quarter to end March was USD$84.9 million, down from $92.9 million the previous year. Revenue for the period came in at $360.2 million, and expenses at $226.3 million, resulting in a $133.9 million pre-tax profit.

Aircraft depreciation was up 14.1 percent to $123.9 million in the quarter.

Air Lease added 11 aircraft to its fleet at a cost of $825 million, pushing its portfolio value to $12.6 billion. It signed 34 lease agreements and added five airlines to its customer roster.

“Throughout the quarter, we saw solid lease demand under attractive terms including robust placements of both our new generation single-aisle and twin-aisle aircraft,” Air Lease chairman Steven Udvar-Házy said.

“We view the slowing of new aircraft orders as healthy for the industry in the face of record backlogs and ongoing strain in the global supply chain,” Udvar-Házy added.

Air Lease had a fleet of 353 aircraft at the end of March, including a managed fleet of 31 planes.