Willis Lease Finance (WLFC) 8-K Willis Lease Finance Reports 2Q11 Earnings per Share Jumps to $0.31 from $0.12 in 2Q10

Exhibit 99.1

		CONTACT:	Brad Forsyth
			Chief Financial Officer
NEWS RELEASE			(415) 408-4700

Willis Lease Finance Reports 2Q11 Earnings per Share Jumps to $0.31 from $0.12 in 2Q10

NOVATO, CA – August 8, 2011 –Willis Lease Finance Corporation (NASDAQ: WLFC), a leading lessor of commercial jet engines, reported year-over- year second quarter net income grew 83% and net earnings applicable to common shareholders increased 140%. Net income increased to $3.5 million in the second quarter of 2011, up from $1.9 million in the second quarter a year ago. After payment of preferred dividends, net income available to common shareholders was $2.7 million or $0.31 per diluted common share, up from $1.1 million or $0.12 per diluted share in the second quarter a year ago.

For the first six months of 2011, net income grew 72% to $8.5 million from $5.0 million in the first half of 2010. Net income attributable to common shareholders more than doubled to $7.0 million, or $0.78 per diluted share, from $3.4 million, or $0.37 per diluted share, in the first half of 2010.

Second Quarter 2011 Highlights(at or for the periods ended June 30, 2011, compared to March 31, 2011, and June 30, 2010)

• The lease portfolio increased 4% year-over-year to $1.0 billion, with three engines purchased and one engine sold and one engine consigned for part-out during the second quarter.

• Average utilization for the quarter was 83%, compared to 89% in the preceding quarter and 84% in the second quarter of 2010. Utilization was 83% at the end of the second quarter in each of 2011 and 2010.

• Lease rent revenues increased to $25.7 million in the second quarter compared to $25.3 million a year ago. Year to date lease rents grew 3% to $53.0 million from $51.3 million in the first half of 2010.

• Maintenance reserve revenues contributed $10.1 million to total second quarter revenues, compared to $8.2 million in the preceding quarter and $7.2 million in the year ago quarter. Year to date, maintenance reserve revenues grew 31% to $18.4 million from $14.0 million in the first half of 2010.

• Gains on sale of leased equipment contributed $2.5 million to second quarter revenues and $7.6 million to first half revenues.

• Total second quarter net finance costs decreased $1.6 million or 15% compared to the year ago quarter, reflecting the maturity of higher cost interest rate swaps over the past year and continuing low interest rates.

• Liquidity available from the revolving credit facility was $90.0 million at quarter end, up from $86.5 million a year ago.

• Book value per common share was $22.24 compared to $20.04 a year ago.

“The highlight of the second quarter was the launch of our new joint venture, Willis Mitsui & Co Engine Support Ltd., established with our partner Mitsui & Co., Ltd. of Tokyo,” said Charles F. Willis, Chairman and CEO. “This joint venture brings together complementary skills, relationships and financial strength that will benefit both companies. It also allows us to leverage our resources and infrastructure and adds a further competitive advantage by giving us access to low cost funding.” The joint venture will specialize in acquiring and leasing V2500 and CF34-10 engines that power the popular A320 and Embraer 190/195 families of aircraft.

“We have recently embarked on several other important initiatives,” continued Willis. “First, Donald Nunemaker has been appointed President of the Company. He will work closely with me to lead the management team to capitalize on the many opportunities that exist today as well as in the future. Second, our finance team is actively working with our bankers around the world pursuing multiple paths to enhance the growth capital resources available to us. Third, we recently established Willis Aviation Finance Ireland Ltd. in Dublin. We have hired our first employees and expect to establish expanded operations in Ireland later this year. Through the planned growth of our engine portfolio in Ireland, we expect to benefit from Ireland’s attractive income tax regime. These initiatives and others will help lay the groundwork for our development over the next 3-5 years.”

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WLFC Reports 2Q11 EPS of $0.31

August 8, 2011

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“While demand for leased engines remains healthy, particularly for older engine types, the oversupply in the market of certain newer engine types continues to put pressure on lease rents and utilization,” said Donald A. Nunemaker, President. “With a highly diversified portfolio of engines, we are able to capitalize on those engine types where there is the most demand, but utilization is unlikely to return to the target of 90% until the demand improves for newer engine models. In the near term we don’t expect to see significant change in the market dynamics that impact utilization and pricing. We continue to keep our eye on the price of fuel. If the price of Brent Crude oil remains around $120 per barrel, or moves higher, it’s likely to cause many airlines to return to their cash conservation mode. This is generally a good development for engine lessors who can lease-in engines so airlines can defer certain large expenditures like expensive engine overhauls costing millions of dollars.”

“Over the past year, we have allowed interest rate swaps with a notional value of $150.0 million to mature without replacing these hedges,” said Brad Forsyth, Chief Financial Officer. “With 54% of our floating rate debt currently hedged, we believe we have optimized the protection hedges offer and are able to enjoy the benefits of continuing low interest rates.”

“Some of the engines sold in the quarter were financed through the Willis Engine Securitization Trust (WEST), which is a flexible financing vehicle Willis Lease created and introduced in 2005,” Forsyth continued. “Due to the timing of the sales of these engines and the receipt of the sales proceeds late in the second quarter, restricted cash was unusually high at $106.7 million at quarter end. The restricted cash balance has dropped below $90 million in July which is more in line with historic levels, with the amounts freed up to pay down our revolving credit facility.”

The blended federal and state effective tax rate for the first six months of 2011 was 39.1% compared to 36.0% a year ago.

Balance Sheet

At June 30, 2011, Willis Lease had 186 commercial aircraft engines, 3 aircraft parts packages and 3 aircraft and other engine-related equipment in its lease portfolio, with a net book value of $1.0 billion, compared to 172 commercial aircraft engines, 4 aircraft parts packages and 4 aircraft and other engine-related equipment in its lease portfolio, with a net book value of $971.0 million a year ago. The Company’s funded debt-to-equity ratio was 3.39 to 1 at June 30, 2011, compared to 3.24 to 1 a year ago.

About Willis Lease Finance

Willis Lease Finance Corporation leases spare commercial aircraft engines and aircraft to commercial airlines, aircraft engine manufacturers, air cargo carriers and maintenance, repair and overhaul facilities worldwide. These leasing activities are integrated with the purchase and resale of used and refurbished commercial aircraft engines.

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WLFC Reports 2Q11 EPS of $0.31

August 8, 2011

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Consolidated Statements of Income

(In thousands, except per share data, unaudited)	Three Months Ended June 30, 2011						%			Six Months Ended June 30, 2011						%
	2011			2010			Change			2011			2010			Change
REVENUE
Lease rent revenue	$	25,655		$	25,280			1.5	%	$	52,961		$	51,332			3.2	%
Maintenance reserve revenue		10,131			7,218			40.4	%		18,357			13,982			31.3	%
Gain on sale of leased equipment		2,534			89			2747.2	%		7,594			2,309			228.9	%
Other income		372			191			94.8	%		592			854			(30.7	)%
Total revenue		38,692			32,778			18.0	%		79,504			68,477			16.1	%
EXPENSES
Depreciation expense		13,071			11,314			15.5	%		26,260			23,057			13.9	%
General and administrative		9,213			5,750			60.2	%		17,424			13,052			33.5	%
Technical expense		2,160			2,712			(20.4	)%		4,467			4,349			2.7	%
Net finance costs
Interest expense		8,788			10,409			(15.6	)%		18,032			20,906			(13.7	)%
Interest income		(42	)		(68	)		(38.2	)%		(85	)		(96	)		(11.5	)%
Total net finance costs		8,746			10,341			(15.4	)%		17,947			20,810			(13.8	)%
Total expenses		33,190			30,117			10.2	%		66,098			61,268			7.9	%
Earnings from operations		5,502			2,661			106.8	%		13,406			7,209			86.0	%
Earnings from joint ventures		320			273			17.2	%		626			535			17.0	%
Income before income taxes		5,822			2,934			98.4	%		14,032			7,744			81.2	%
Income tax expense		2,340			1,027			127.8	%		5,487			2,787			96.9	%
Net income	$	3,482		$	1,907			82.6	%	$	8,545		$	4,957			72.4	%
Preferred stock dividends paid and declared-Series A		782			782			0.0	%		1,564			1,564			0.0	%
Net income attributable to common shareholders	$	2,700		$	1,125			140.0	%	$	6,981		$	3,393			105.7	%
Basic earnings per common share	$	0.32		$	0.13					$	0.83		$	0.39
Diluted earnings per common share	$	0.31		$	0.12					$	0.78		$	0.37
Average common shares outstanding		8,322			8,729						8,436			8,695
Diluted average common shares outstanding		8,796			9,255						8,929			9,295

WLFC Reports 2Q11 EPS of $0.31

August 8, 2011

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Consolidated Balance Sheets

(In thousands, except share data, unaudited)
	June 30, 2011			Dec 31, 2010			June 30, 2010
ASSETS
Cash and cash equivalents	$	8,252		$	2,225		$	1,685
Restricted cash		106,714			77,013			70,389
Equipment held for operating lease, less accumulated depreciation		1,013,045			998,001			970,984
Equipment held for sale		6,987			7,418			11,076
Operating lease related receivable, net of allowances		7,736			8,872			6,739
Notes receivable, net of allowances		643			747			1,081
Investments		17,637			9,381			10,752
Property, equipment & furnishings, less accumulated depreciation		7,190			6,971			7,257
Equipment purchase deposits		3,376			2,769			2,082
Other assets		19,062			12,565			13,148
Total assets	$	1,190,642		$	1,125,962		$	1,095,193
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses	$	17,854		$	18,099		$	11,276
Liabilities under derivative instruments		13,722			14,274			16,385
Deferred income taxes		81,077			75,645			69,156
Notes payable		713,900			731,632			716,754
Other debt		69,745			—			—
Maintenance reserves		54,489			50,442			51,721
Security deposits		5,868			5,726			5,914
Unearned lease revenue		2,893			3,174			3,025
Total liabilities		959,548			898,992			874,231
Shareholders’ equity:
Preferred stock	$	31,915		$	31,915		$	31,915
Common stock ($0.01 par value)		90			92			94
Paid-in capital in excess of par		56,611			60,108			61,861
Retained earnings		152,305			145,324			139,795
Accumulated other comprehensive loss, net of tax		(9,827	)		(10,469	)		(12,703	)
Total shareholders’ equity		231,094			226,970			220,962
Total liabilities and shareholders’ equity	$	1,190,642		$	1,125,962		$	1,095,193

Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made; and we undertake no obligation to update them. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to, the effects on the airline industry and the global economy of events such as terrorist activity, changes in oil prices and other disruptions to the world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet the changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing reports filed with the Securities and Exchange Commission.

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Note: Transmitted on GlobeNewswire on August 8, 2011 at 5:30 a.m. PDT.