Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 02, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35121 | |
Entity Registrant Name | AIR LEASE CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-1840403 | |
Entity Address, Address Line One | 2000 Avenue of the Stars, | |
Entity Address, Address Line Two | Suite 1000N | |
Entity Address, City or Town | Los Angeles, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90067 | |
City Area Code | 310 | |
Local Phone Number | 553-0555 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 111,027,252 | |
Entity Central Index Key | 0001487712 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | AL | |
Security Exchange Name | NYSE | |
6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A | |
Trading Symbol | AL PRA | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 512,084 | $ 766,418 |
Restricted cash | 3,650 | 13,599 |
Flight equipment subject to operating leases | 30,961,069 | 29,466,888 |
Less accumulated depreciation | (5,365,755) | (4,928,503) |
Flight equipment subject to operating leases, net | 25,595,314 | 24,538,385 |
Deposits on flight equipment purchases | 1,173,382 | 1,344,973 |
Other assets | 2,387,795 | 1,733,330 |
Total assets | 29,672,225 | 28,396,705 |
Liabilities and Shareholders’ Equity | ||
Accrued interest and other payables | 1,400,890 | 696,899 |
Debt financing, net of discounts and issuance costs | 18,645,843 | 18,641,063 |
Security deposits and maintenance reserves on flight equipment leases | 1,461,012 | 1,293,929 |
Rentals received in advance | 141,484 | 147,654 |
Deferred tax liability | 1,061,943 | 970,797 |
Total liabilities | 22,711,172 | 21,750,342 |
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, 2023 and December 31, 2022, respectively | 106 | 106 |
Paid-in capital | 3,275,949 | 3,255,973 |
Retained earnings | 3,682,503 | 3,386,820 |
Accumulated other comprehensive income | 1,385 | 2,355 |
Total shareholders’ equity | 6,961,053 | 6,646,363 |
Total liabilities and shareholders’ equity | 29,672,225 | 28,396,705 |
Class A Common Stock | ||
Shareholders’ Equity | ||
Common stock | 1,110 | 1,109 |
Class B Non‑Voting Common Stock | ||
Shareholders’ Equity | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Preferred stock, issued (in shares) | 10,600,000 | |
Preferred stock, outstanding (in shares) | 10,600,000 | |
Preferred stock, aggregate liquidation preference | $ 850,000 | |
Noncumulative Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 10,600,000 | 10,600,000 |
Preferred stock, outstanding (in shares) | 10,600,000 | 10,600,000 |
Preferred stock, aggregate liquidation preference | $ 850,000 | $ 850,000 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 111,027,252 | 110,892,097 |
Common stock, outstanding (in shares) | 111,027,252 | 110,892,097 |
Class B Non‑Voting Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 0 | 0 |
Common stock, outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Rental of flight equipment | $ 604,027 | $ 541,397 | $ 1,833,533 | $ 1,653,223 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Aircraft Sales, Trading And Other [Member] | Aircraft Sales, Trading And Other [Member] | Aircraft Sales, Trading And Other [Member] | Aircraft Sales, Trading And Other [Member] |
Aircraft sales, trading and other | $ 55,337 | $ 19,937 | $ 134,876 | $ 62,469 |
Total revenues | 659,364 | 561,334 | 1,968,409 | 1,715,692 |
Expenses | ||||
Interest | 161,769 | 122,348 | 485,555 | 358,621 |
Amortization of debt discounts and issuance costs | 13,695 | 13,162 | 40,414 | 39,772 |
Interest expense | 175,464 | 135,510 | 525,969 | 398,393 |
Depreciation of flight equipment | 267,393 | 242,503 | 795,659 | 713,095 |
Write-off of Russian fleet | 0 | 0 | 0 | 802,352 |
Selling, general and administrative | 42,770 | 39,718 | 136,216 | 110,993 |
Stock-based compensation expense | 8,719 | 5,764 | 23,330 | 9,799 |
Total expenses | 494,346 | 423,495 | 1,481,174 | 2,034,632 |
Income/(loss) before taxes | 165,018 | 137,839 | 487,235 | (318,940) |
Income tax (expense)/benefit | (32,568) | (27,458) | (93,664) | 76,606 |
Net income/(loss) | 132,450 | 110,381 | 393,571 | (242,334) |
Preferred stock dividends | (10,425) | (10,425) | (31,275) | (31,275) |
Net income/(loss) attributable to common stockholders, basic | 122,025 | 99,956 | 362,296 | (273,609) |
Net income/(loss) attributable to common stockholders, diluted | 122,025 | 99,956 | 362,296 | (273,609) |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustment | 7,453 | 21,481 | 500 | 27,811 |
Change in fair value of hedged transactions | (7,629) | (17,063) | (1,733) | (21,774) |
Total tax benefit/(expense) on other comprehensive income/loss | 37 | (946) | 263 | (1,292) |
Other comprehensive income/(loss), net of tax | (139) | 3,472 | (970) | 4,745 |
Total comprehensive income/(loss) attributable for common stockholders | $ 121,886 | $ 103,428 | $ 361,326 | $ (268,864) |
Earnings/(loss) per share of common stock: | ||||
Basic (in dollars per share) | $ 1.10 | $ 0.90 | $ 3.26 | $ (2.45) |
Diluted (in dollars per share) | $ 1.10 | $ 0.90 | $ 3.25 | $ (2.45) |
Weighted-average shares of common stock outstanding | ||||
Basic (in shares) | 111,027,252 | 110,892,097 | 110,997,619 | 111,874,002 |
Diluted (in shares) | 111,346,799 | 111,090,133 | 111,383,257 | 111,874,002 |
Dividends declared per share of common stock (in dollars per share) | $ 0.20 | $ 0.185 | $ 0.60 | $ 0.555 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Non‑Voting Common Stock | Preferred Stock | Common Stock Class A Common Stock | Common Stock Class B Non‑Voting Common Stock | Paid‑in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) |
Beginning balance preferred stock (in shares) at Dec. 31, 2021 | 10,600,000 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 7,008,568 | $ 106 | $ 1,140 | $ 0 | $ 3,399,245 | $ 3,609,885 | $ (1,808) | ||
Beginning balance common stock (in shares) at Dec. 31, 2021 | 113,987,154 | 0 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 477,656 | ||||||||
Issuance of common stock upon vesting of restricted stock units | 2 | $ 5 | (3) | ||||||
Common stock repurchased (in shares) | (2,959,458) | ||||||||
Common stock repurchased | (129,549) | $ (30) | (129,519) | ||||||
Stock-based compensation expense | (2,523) | (2,523) | |||||||
Cash dividends | (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 (in shares) | (188,093) | ||||||||
Tax withholdings on stock-based compensation | (8,097) | $ (2) | (8,095) | ||||||
Net income (loss) | (468,993) | (468,993) | |||||||
Ending balance preferred stock (in shares) at Mar. 31, 2022 | 10,600,000 | ||||||||
Ending balance at Mar. 31, 2022 | 6,369,585 | $ 106 | $ 1,113 | $ 0 | 3,259,105 | 3,109,331 | (70) | ||
Ending balance common stock (in shares) at Mar. 31, 2022 | 111,317,259 | 0 | |||||||
Beginning balance preferred stock (in shares) at Dec. 31, 2021 | 10,600,000 | ||||||||
Beginning balance at Dec. 31, 2021 | 7,008,568 | $ 106 | $ 1,140 | $ 0 | 3,399,245 | 3,609,885 | (1,808) | ||
Beginning balance common stock (in shares) at Dec. 31, 2021 | 113,987,154 | 0 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax | 4,745 | ||||||||
Net income (loss) | (242,334) | ||||||||
Ending balance preferred stock (in shares) at Sep. 30, 2022 | 10,600,000 | ||||||||
Ending balance at Sep. 30, 2022 | 6,528,434 | $ 106 | $ 1,109 | $ 0 | 3,250,169 | 3,274,113 | 2,937 | ||
Ending balance common stock (in shares) at Sep. 30, 2022 | 110,892,097 | 0 | |||||||
Beginning balance preferred stock (in shares) at Mar. 31, 2022 | 10,600,000 | ||||||||
Beginning balance at Mar. 31, 2022 | 6,369,585 | $ 106 | $ 1,113 | $ 0 | 3,259,105 | 3,109,331 | (70) | ||
Beginning balance common stock (in shares) at Mar. 31, 2022 | 111,317,259 | 0 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 59,603 | ||||||||
Common stock repurchased (in shares) | (461,416) | ||||||||
Common stock repurchased | (20,454) | $ (4) | (20,450) | ||||||
Stock-based compensation expense | 6,558 | 6,558 | |||||||
Cash dividends | (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 (in shares) | (23,349) | ||||||||
Tax withholdings on stock-based compensation | (931) | (931) | |||||||
Net income (loss) | 116,277 | 116,277 | |||||||
Ending balance preferred stock (in shares) at Jun. 30, 2022 | 10,600,000 | ||||||||
Ending balance at Jun. 30, 2022 | 6,439,634 | $ 106 | $ 1,109 | $ 0 | 3,244,282 | 3,194,672 | (535) | ||
Ending balance common stock (in shares) at Jun. 30, 2022 | 110,892,097 | 0 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Stock-based compensation expense | 5,764 | 5,764 | |||||||
Cash dividends | (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 (loss) | 110,381 | 110,381 | |||||||
Ending balance preferred stock (in shares) at Sep. 30, 2022 | 10,600,000 | ||||||||
Ending balance at Sep. 30, 2022 | 6,528,434 | $ 106 | $ 1,109 | $ 0 | 3,250,169 | 3,274,113 | 2,937 | ||
Ending balance common stock (in shares) at Sep. 30, 2022 | 110,892,097 | 0 | |||||||
Beginning balance preferred stock (in shares) at Dec. 31, 2022 | 10,600,000 | ||||||||
Beginning balance at Dec. 31, 2022 | 6,646,363 | $ 106 | $ 1,109 | $ 0 | 3,255,973 | 3,386,820 | 2,355 | ||
Beginning balance common stock (in shares) at Dec. 31, 2022 | 110,892,097 | 0 | 110,892,097 | 0 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 198,437 | ||||||||
Issuance of common stock upon vesting of restricted stock units | 1 | $ 1 | |||||||
Stock-based compensation expense | 5,896 | 5,896 | |||||||
Cash dividends | (22,203) | (22,203) | |||||||
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 | (536) | (536) | |||||||
Tax withholdings on stock-based compensation (in shares) | (75,116) | ||||||||
Tax withholdings on stock-based compensation | (3,230) | (3,230) | |||||||
Net income (loss) | 128,720 | 128,720 | |||||||
Ending balance preferred stock (in shares) at Mar. 31, 2023 | 10,600,000 | ||||||||
Ending balance at Mar. 31, 2023 | 6,744,586 | $ 106 | $ 1,110 | $ 0 | 3,258,639 | 3,482,912 | 1,819 | ||
Ending balance common stock (in shares) at Mar. 31, 2023 | 111,015,418 | 0 | |||||||
Beginning balance preferred stock (in shares) at Dec. 31, 2022 | 10,600,000 | ||||||||
Beginning balance at Dec. 31, 2022 | 6,646,363 | $ 106 | $ 1,109 | $ 0 | 3,255,973 | 3,386,820 | 2,355 | ||
Beginning balance common stock (in shares) at Dec. 31, 2022 | 110,892,097 | 0 | 110,892,097 | 0 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax | (970) | ||||||||
Net income (loss) | $ 393,571 | ||||||||
Ending balance preferred stock (in shares) at Sep. 30, 2023 | 10,600,000 | 10,600,000 | |||||||
Ending balance at Sep. 30, 2023 | $ 6,961,053 | $ 106 | $ 1,110 | $ 0 | 3,275,949 | 3,682,503 | 1,385 | ||
Ending balance common stock (in shares) at Sep. 30, 2023 | 111,027,252 | 0 | 111,027,252 | 0 | |||||
Beginning balance preferred stock (in shares) at Mar. 31, 2023 | 10,600,000 | ||||||||
Beginning balance at Mar. 31, 2023 | 6,744,586 | $ 106 | $ 1,110 | $ 0 | 3,258,639 | 3,482,912 | 1,819 | ||
Beginning balance common stock (in shares) at Mar. 31, 2023 | 111,015,418 | 0 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 14,962 | ||||||||
Stock-based compensation expense | 8,715 | 8,715 | |||||||
Cash dividends | (22,205) | (22,205) | |||||||
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 | (295) | (295) | |||||||
Tax withholdings on stock-based compensation (in shares) | (3,128) | ||||||||
Tax withholdings on stock-based compensation | (124) | (124) | |||||||
Net income (loss) | 132,401 | 132,401 | |||||||
Ending balance preferred stock (in shares) at Jun. 30, 2023 | 10,600,000 | ||||||||
Ending balance at Jun. 30, 2023 | 6,852,653 | $ 106 | $ 1,110 | $ 0 | 3,267,230 | 3,582,683 | 1,524 | ||
Ending balance common stock (in shares) at Jun. 30, 2023 | 111,027,252 | 0 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Stock-based compensation expense | 8,719 | 8,719 | |||||||
Cash dividends | (22,205) | (22,205) | |||||||
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 | (139) | (139) | |||||||
Net income (loss) | $ 132,450 | 132,450 | |||||||
Ending balance preferred stock (in shares) at Sep. 30, 2023 | 10,600,000 | 10,600,000 | |||||||
Ending balance at Sep. 30, 2023 | $ 6,961,053 | $ 106 | $ 1,110 | $ 0 | $ 3,275,949 | $ 3,682,503 | $ 1,385 | ||
Ending balance common stock (in shares) at Sep. 30, 2023 | 111,027,252 | 0 | 111,027,252 | 0 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.185 | $ 0.185 | $ 0.185 | $ 0.60 | $ 0.555 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities | ||
Net income/(loss) | $ 393,571 | $ (242,334) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Depreciation of flight equipment | 795,659 | 713,095 |
Write-off of Russian fleet | 0 | 802,352 |
Stock-based compensation expense | 23,330 | 9,799 |
Deferred taxes | 91,410 | (78,035) |
Amortization of discounts and debt issuance costs | 40,414 | 39,772 |
Amortization of prepaid lease costs | 54,962 | 34,734 |
Gain on aircraft sales, trading and other activity | (147,174) | (85,616) |
Changes in operating assets and liabilities: | ||
Other assets | 40,496 | (243,109) |
Accrued interest and other payables | (6,380) | (8,354) |
Rentals received in advance | (3,982) | 16,259 |
Net cash provided by operating activities | 1,282,306 | 958,563 |
Investing Activities | ||
Acquisition of flight equipment under operating lease | (2,782,507) | (2,166,317) |
Payments for deposits on flight equipment purchases | (249,231) | (428,424) |
Proceeds from aircraft sales, trading and other activity | 1,568,420 | 42,043 |
Acquisition of aircraft furnishings, equipment and other assets | (205,368) | (162,897) |
Net cash used in investing activities | (1,668,686) | (2,715,595) |
Financing Activities | ||
Cash dividends paid on Class A common stock | (66,587) | (62,738) |
Common shares repurchased | 0 | (150,000) |
Cash dividends paid on preferred stock | (31,275) | (31,275) |
Tax withholdings on stock-based compensation | (3,354) | (8,903) |
Net change in unsecured revolving facility | 758,000 | 1,570,000 |
Proceeds from debt financings | 1,783,973 | 1,497,615 |
Payments in reduction of debt financings | (2,566,518) | (1,327,146) |
Debt issuance costs | (10,590) | (5,855) |
Security deposits and maintenance reserve receipts | 269,171 | 308,637 |
Security deposits and maintenance reserve disbursements | (10,723) | (24,627) |
Net cash provided by financing activities | 122,097 | 1,765,708 |
Net (decrease)/increase in cash | (264,283) | 8,676 |
Cash, cash equivalents and restricted cash at beginning of period | 780,017 | 1,108,292 |
Cash, cash equivalents and restricted cash at end of period | 515,734 | 1,116,968 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest, including capitalized interest of $31,708 and $29,335 at September 30, 2023 and 2022, respectively | 532,922 | 442,461 |
Cash paid for income taxes | 6,250 | 5,808 |
Supplemental Disclosure of Noncash Activities | ||
Buyer furnished equipment, capitalized interest and deposits on flight equipment purchases applied to acquisition of flight equipment and other assets | 620,280 | 596,021 |
Cash dividends declared on Class A common stock, not yet paid | $ 22,205 | $ 20,515 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid for interest, capitalized interest | $ 31,708 | $ 29,335 |
Company Background and Overview
Company Background and Overview | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Background and Overview | Company Background and OverviewAir 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, 2023, the Company owned 448 aircraft, managed 79 aircraft and had 351 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. |
Basis of Preparation and Critic
Basis of Preparation and Critical Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation and Critical Accounting Policies | 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, 2023, and for all periods presented. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the operating results expected for the year ending December 31, 2023. 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, 2022. Summary of Significant Accounting Policies Flight equipment Flight equipment under operating lease is stated at cost less accumulated depreciation. Purchases, major additions and modifications, and interest on deposits during the construction phase are capitalized. The Company generally depreciates passenger aircraft on a straight-line basis over a 25-year life from the date of manufacture to a 15% residual value. The Company generally depreciates freighter aircraft on a straight-line basis over a 35-year life from the date of manufacture to a 15% residual value. Changes in the assumption of useful lives or residual values for aircraft could have a significant impact on the Company’s results of operations and financial condition. Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over the lesser of the remaining life of the flight equipment or the aircraft improvement. In addition, costs paid by us for scheduled maintenance and overhauls are capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred. The Company’s management evaluates on a quarterly basis the need to perform an impairment test whenever facts or circumstances indicate a potential impairment has occurred. An assessment is performed whenever events or changes in circumstances indicate that the carrying amount of an aircraft may not be recoverable. Recoverability of an aircraft’s carrying amount is measured by comparing the carrying amount of the aircraft to future undiscounted net cash flows expected to be generated by the aircraft. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, and estimated residual or scrap values for each aircraft. We develop assumptions used in the recoverability analysis based on our knowledge of active lease contracts, current and future expectations of the global demand for a particular aircraft type, potential for alternative use of aircraft and historical experience in the aircraft leasing market and aviation industry, as well as information received from third-party industry sources. The factors considered in estimating the undiscounted cash flows are affected by changes in future periods due to changes in contracted lease rates, economic conditions, technology, and airline demand for a particular aircraft type. In the event that an aircraft does not meet the recoverability test and the aircraft's carrying amount falls below estimated values from third-party industry sources, the aircraft will be recorded at fair value in accordance with the Company’s Fair Value Policy, resulting in an impairment charge. The |
Debt Financing
Debt Financing | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt Financing | Debt Financing The Company’s consolidated debt as of September 30, 2023 and December 31, 2022 is summarized below: September 30, 2023 December 31, 2022 (in thousands) Unsecured Senior unsecured securities $ 15,944,616 $ 17,095,116 Revolving credit facility 1,778,000 1,020,000 Term financings 798,350 582,950 Total unsecured debt financing 18,520,966 18,698,066 Secured Export credit financing 208,514 11,646 Term financings 103,812 113,717 Total secured debt financing 312,326 125,363 Total debt financing 18,833,292 18,823,429 Less: Debt discounts and issuance costs (187,449) (182,366) Debt financing, net of discounts and issuance costs $ 18,645,843 $ 18,641,063 As of September 30, 2023, management of the Company believes it is in compliance in all material respects with the covenants in its debt agreements, including minimum consolidated shareholders’ equity, minimum consolidated unencumbered assets, and interest coverage ratio. All of the Company’s secured obligations as of September 30, 2023 and December 31, 2022 are recourse in nature. Senior unsecured securities (including Medium-Term Note Program) As of September 30, 2023, the Company had $15.9 billion in senior unsecured securities outstanding. As of December 31, 2022, the Company had $17.1 billion in senior unsecured securities outstanding. Public unsecured bonds. During the nine months ended September 30, 2023, the Company issued $700.0 million in aggregate principal amount of 5.30% Medium-Term Notes due 2028. Private placement securities. During the nine months ended September 30, 2023, the Company, through a trust, issued $600.0 million in aggregate principal amount of 5.85% trust certificates due 2028 in a Sukuk financing. If the Company fails to meet its obligations under the Sukuk financing, the sole rights of each of the holders of the trust certificates will be against the Company to perform its obligations under the arrangements to which it is a party. Syndicated unsecured revolving credit facility As of September 30, 2023 and December 31, 2022, the Company had $1.8 billion and $1.0 billion, respectively, outstanding under its syndicated unsecured revolving credit facility (the “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 2023, the Company amended and extended its Revolving Credit Facility through an amendment that, among other things, extended the final maturity date from May 5, 2026 to May 5, 2027 and amended the total revolving commitments thereunder to approximately $7.2 billion as of May 5, 2023. The amended Revolving Credit Facility also decreased the SOFR credit spread adjustment applicable to borrowings for all interest periods. As of September 30, 2023, borrowings under the Revolving Credit Facility accrue 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 changes in the Company’s credit ratings. As of November 6, 2023, lenders held revolving commitments totaling approximately $6.8 billion that mature on May 5, 2027, commitments totaling $320.0 million that mature on May 5, 2026, and commitments totaling $32.5 million that mature on May 5, 2025. In October 2023, the Company increased the aggregate facility capacity by an additional $25.0 million. Unsecured term financings In May 2023, the Company entered into a $650.0 million term loan. In July 2023 and October 2023, the Company entered into new lender supplements to increase the aggregate term loan capacity by an additional $100.0 million. Under the terms of the loan agreement, the Company had the ability to set the funding date of the loan, subject to an outside funding date of November 1, 2023. As of November 6, 2023, the Company had $750.0 million in borrowings outstanding under the term loan. The term loan bears interest at a floating rate of Term SOFR plus a credit spread adjustment of 0.10% plus 1.4% and has a final maturity on November 24, 2026. The term loan contains customary covenants and events of default consistent with the Company’s Revolving Credit Facility. In addition, during the three months ended September 30, 2023, the Company entered into a $150.0 million unsecured term financing with a one-year maturity bearing interest at a floating rate of one-month SOFR plus a credit spread adjustment of 0.10% plus 1.25%. As of September 30, 2023 and December 31, 2022, the outstanding balance on the Company’s unsecured term financings was $798.4 million and $583.0 million, respectively. Secured debt financings In June 2023 and August 2023, the Company issued $112.2 million in secured notes due 2034 and $101.7 million in secured notes due 2035, respectively, both of which are amortized over the term of the notes and are guaranteed by United Kingdom Export Finance (“UKEF”), the UK government’s export credit agency. Each tranche of the notes bears interest at a floating rate of three-month SOFR plus 0.42%. The Company pledged two aircraft as collateral in connection with these transactions. As of September 30, 2023, the Company had an outstanding balance of $312.3 million in secured debt financings and pledged four aircraft as collateral with a net book value of $450.5 million. As of December 31, 2022, the Company had an outstanding balance of $125.4 million in secured debt financings and pledged three aircraft as collateral with a net book value of $212.1 million. Maturities Maturities of debt outstanding as of September 30, 2023 are as follows (in thousands): Years ending December 31, 2023 $ 26,820 2024 3,102,525 2025 2,424,455 2026 3,708,533 2027 4,467,478 Thereafter 5,103,481 Total $ 18,833,292 |
Flight equipment subject to ope
Flight equipment subject to operating lease | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Flight equipment subject to operating lease | 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, 2023: (in thousands) Net book value as of December 31, 2022 $ 24,538,385 Purchase of aircraft 3,429,479 Depreciation (795,659) Sale of aircraft (906,992) Transferred to Held for Sale (669,899) Net book value as of September 30, 2023 $ 25,595,314 Accumulated depreciation as of September 30, 2023 $ (5,365,755) Update on 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, including eight aircraft from its managed fleet. While the Company or the respective managed platform maintains title to the aircraft, the Company determined that it is unlikely it or they 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 previously detained in Russia was returned to the Company. At this time, the Company does not anticipate the return of any other aircraft detained in Russia. In June 2022, the Company submitted insurance claims to its insurers to recover its losses relating to aircraft detained in Russia. In December 2022, the Company filed suit in the Los Angeles County Superior Court of the State of California against its insurers in connection with its previously submitted insurance claims and will continue to vigorously pursue all available insurance claims. Collection, timing and amounts of any insurance recoveries and the outcome of the ongoing insurance litigation remain uncertain at this time. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Aircraft Acquisition As of September 30, 2023, the Company had commitments to purchase 351 aircraft from Airbus and Boeing for delivery through 2028, with ongoing delays that could extend through 2029, with an estimated aggregate commitment of $22.6 billion. The table is subject to change based on Airbus and Boeing delivery delays. As noted below, the Company expects delivery delays for a majority of the aircraft in its orderbook. The Company remains in discussions with Airbus and Boeing to determine the extent and duration of delivery delays; however, the Company is not currently able to determine the full impact of these delays. Estimated Delivery Years Aircraft Type 2023 2024 2025 2026 2027 Thereafter Total Airbus A220-100/300 6 19 10 18 14 — 67 Airbus A320/321neo (1) 10 20 13 40 40 38 161 Airbus A330-900neo 2 6 — — — — 8 Airbus A350-900/1000 — 4 — — — — 4 Airbus A350F — — — — 4 3 7 Boeing 737-8/9 MAX 6 32 30 16 — — 84 Boeing 787-9/10 — 10 9 1 — — 20 Total (2) 24 91 62 75 58 41 351 (1) The Company’s Airbus A320/321neo aircraft orders include 12 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 Airbus and Boeing, 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 both Airbus and Boeing. The aircraft purchase commitments discussed above could also be impacted by cancellations. The Company’s purchase agreements with Airbus and Boeing 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 $22.6 billion as of September 30, 2023, are as follows (in thousands): Years ending December 31, 2023 (excluding the nine months ended September 30, 2023) $ 1,660,591 2024 6,516,990 2025 4,306,517 2026 4,200,731 2027 3,459,362 Thereafter 2,479,725 Total $ 22,623,916 The Company has made non-refundable deposits on flight equipment purchases of $1.2 billion and $1.3 billion as of September 30, 2023 and December 31, 2022, respectively, 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. |
Rental Income
Rental Income | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Rental Income | Rental Income As of September 30, 2023, 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, 2023 are as follows (in thousands): Years ending December 31, 2023 (excluding the nine months ended September 30, 2023) $ 585,241 2024 2,335,945 2025 2,200,120 2026 1,962,861 2027 1,745,623 Thereafter 7,265,525 Total $ 16,095,315 |
Earnings_(Loss) Per Share
Earnings/(Loss) Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings/(Loss) Per Share | Earnings/(Loss) Per Share Basic earnings/(loss) per share is computed by dividing net income/(loss) by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company’s two classes of common stock, Class A and Class B non-voting, have equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock. As of September 30, 2023, the Company did not have any Class B non-voting common stock outstanding. Diluted earnings per share takes into account the potential conversion of stock options, restricted stock units, and warrants using the treasury stock method and convertible notes using the if-converted method. For the three and nine months ended September 30, 2023, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. Since the Company was in a loss position for the nine months ended September 30, 2022, diluted net loss per share is the same as basic net loss per share for the period as the inclusion of all potential common shares outstanding would have been anti-dilutive. For the nine months ended September 30, 2022, the Company excluded 329,947 potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. For the three months ended September 30, 2022, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. The Company excluded 965,788 and 976,509 shares related to restricted stock units for which the performance metric had yet to be achieved as of September 30, 2023 and 2022, respectively. The following table sets forth the reconciliation of basic and diluted earnings/(loss) per share: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands, except share and per share) Basic earnings/(loss) per share: Numerator Net income/(loss) $ 132,450 $ 110,381 $ 393,571 $ (242,334) Preferred stock dividends (10,425) (10,425) (31,275) (31,275) Net income/(loss) attributable to common stockholders $ 122,025 $ 99,956 $ 362,296 $ (273,609) Denominator Weighted-average shares outstanding 111,027,252 110,892,097 110,997,619 111,874,002 Basic earnings/(loss) per share $ 1.10 $ 0.90 $ 3.26 $ (2.45) Diluted earnings/(loss) per share: Numerator Net income/(loss) $ 132,450 $ 110,381 $ 393,571 $ (242,334) Preferred stock dividends (10,425) (10,425) (31,275) (31,275) Net income/(loss) attributable to common stockholders $ 122,025 $ 99,956 $ 362,296 $ (273,609) Denominator Number of shares used in basic computation 111,027,252 110,892,097 110,997,619 111,874,002 Weighted-average effect of dilutive securities 319,547 198,036 385,638 — Number of shares used in per share computation 111,346,799 111,090,133 111,383,257 111,874,002 Diluted earnings/(loss) per share $ 1.10 $ 0.90 $ 3.25 $ (2.45) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis The Company has a cross-currency swap related to its Canadian dollar Medium-Term Notes, which were issued in December 2019. The fair value of the swap as a foreign currency exchange derivative is categorized as a Level 2 measurement in the fair value hierarchy and is measured on a recurring basis. As of September 30, 2023, the estimated fair value of the foreign currency exchange derivative liability was $4.2 million. As of December 31, 2022, the estimated fair value of the foreign currency exchange derivative liability was $2.5 million. Financial Instruments Not Measured at Fair Values The fair value of debt financing is estimated based on the quoted market prices for the same or similar issues, or on the current rates offered to the Company for debt of the same remaining maturities, which would be categorized as a Level 2 measurement in the fair value hierarchy. The estimated fair value of debt financing as of September 30, 2023 was $17.6 billion compared to a book value of $18.8 billion. The estimated fair value of debt financing as of December 31, 2022 was $17.5 billion compared to a book value of $18.8 billion. The following financial instruments are not measured at fair value on the Company’s Consolidated Balance Sheets at September 30, 2023, but require disclosure of their fair values: cash and cash equivalents and restricted cash. The estimated fair value of such instruments at September 30, 2023 and December 31, 2022 approximates their carrying value as reported on the Consolidated Balance Sheets. The fair value of all these instruments would be categorized as Level 1 in the fair value hierarchy. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The Company was authorized to issue 500,000,000 shares of Class A common stock, $0.01 par value, at September 30, 2023 and December 31, 2022. As of September 30, 2023 and December 31, 2022, the Company had 111,027,252 and 110,892,097 Class A common shares issued and outstanding, respectively. The Company was authorized to issue 10,000,000 shares of Class B common stock, $0.01 par value at September 30, 2023 and December 31, 2022. The Company did not have any shares of Class B non-voting common stock, $0.01 par value, issued or outstanding as of September 30, 2023 or December 31, 2022. The Company was authorized to issue 50,000,000 shares of preferred stock, $0.01 par value, at September 30, 2023 and December 31, 2022. As of September 30, 2023 and December 31, 2022, the Company had 10.0 million shares of 6.15% Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $250.0 million ($25.00 per share), 300,000 shares of 4.65% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $300.0 million ($1,000 per share) and 300,000 shares of 4.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C (the “Series C Preferred Stock”), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $300.0 million ($1,000 per share). The following table summarizes the Company’s preferred stock issued and outstanding as of September 30, 2023 (in thousands, except for share amounts and percentages): Shares Issued and Outstanding as of September 30, 2023 Liquidation Preference Issue Date Dividend Rate in Effect at September 30, 2023 Next dividend rate reset date Dividend rate after reset date Series A 10,000,000 $ 250,000 March 5, 2019 6.150 % March 15, 2024 3M Term SOFR (1) plus 3.65% Series B 300,000 300,000 March 2, 2021 4.650 % June 15, 2026 5 Yr U.S. Treasury plus 4.076% Series C 300,000 300,000 October 13, 2021 4.125 % December 15, 2026 5 Yr U.S. Treasury plus 3.149% Total 10,600,000 $ 850,000 (1) 3M Term SOFR includes a credit spread adjustment of 0.10%. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation On May 3, 2023, the stockholders of the Company approved the Air Lease Corporation 2023 Equity Incentive Plan (the “2023 Plan”). Upon approval of the 2023 Plan, no new awards under the Air Lease Corporation 2014 Equity Incentive Plan (the “2014 Plan”) could be granted. As of September 30, 2023, the number of shares of Class A Common Stock available for new award grants under the 2023 Plan is approximately 4,140,023. The Company has issued restricted stock units (“RSUs”) with four different vesting criteria: those RSUs that vest based on the attainment of book-value goals, those RSUs that vest based on the attainment of Total Shareholder Return (“TSR”) goals, time based RSUs that vest ratably over a time period of three years and RSUs that cliff vest at the end of a one two The Company recorded $8.7 million and $5.8 million of stock-based compensation expense related to RSUs for the three months ended September 30, 2023 and 2022, respectively. The Company recorded $23.3 million and $9.8 million of stock-based compensation expense related to RSUs for the nine months ended September 30, 2023 and 2022, respectively. For the nine months ended September 30, 2022, the Company reduced the underlying vesting estimates of certain book value RSUs as the performance criteria were no longer considered probable of being achieved. Restricted Stock Units Compensation cost for RSUs is measured at the grant date based on fair value and recognized over the vesting period. The fair value of time based and book value RSUs is determined based on the closing market price of the Company’s Class A common stock on the date of grant, while the fair value of RSUs that vest based on the attainment of TSR goals is determined at the grant date using a Monte Carlo simulation model. Included in the Monte Carlo simulation model were certain assumptions regarding a number of highly complex and subjective variables, such as expected volatility, risk-free interest rate and expected dividends. To appropriately value the award, the risk-free interest rate is estimated for the time period from the valuation date until the vesting date and the historical volatilities were estimated based on a historical timeframe equal to the time from the valuation date until the end date of the performance period. During the nine months ended September 30, 2023, the Company granted 704,565 RSUs of which 121,608 are TSR RSUs and 243,206 are book value RSUs. The following table summarizes the activities for the Company’s unvested RSUs for the nine months ended September 30, 2023: Unvested Restricted Stock Units Number of Weighted-Average Unvested at December 31, 2022 1,514,875 $ 45.90 Granted 704,565 $ 44.73 Vested (229,187) $ 44.19 Forfeited/canceled (379,754) $ 42.52 Unvested at September 30, 2023 1,610,499 $ 46.43 Expected to vest after September 30, 2023 1,769,213 $ 46.17 As of September 30, 2023, there was $41.0 million of unrecognized compensation expense related to unvested stock-based payments granted to employees. Total unrecognized compensation expense will be recognized over a weighted-average remaining period of 1.82 years. |
Aircraft Under Management
Aircraft Under Management | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Aircraft Under Management | Aircraft Under Management As of September 30, 2023, the Company managed 79 aircraft across two aircraft management platforms. The Company managed 45 aircraft through its Thunderbolt platform and 34 aircraft through the Blackbird investment funds. As of September 30, 2023, the Company managed 34 aircraft on behalf of third-party investors through two investment funds, Blackbird I and Blackbird II. These funds invest in commercial jet aircraft and lease them to airlines throughout the world. The Company provides management services to these funds for a fee. As of September 30, 2023, the Company's non-controlling interests in each fund were 9.5% and are accounted for under the equity method of accounting. The Company’s investments in these funds aggregated $65.9 million and $64.7 million as of September 30, 2023 and December 31, 2022, respectively, and are included in Other assets on the Consolidated Balance Sheets. |
Net Investment in Sales-type Le
Net Investment in Sales-type Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Net Investment in Sales-type Leases | Net Investment in Sales-type Leases As of September 30, 2023, the Company had sales-type leases for 11 aircraft in its owned fleet. Net investment in sales-type leases are included in Other assets in the Company’s Consolidated Balance Sheets based on the present value of fixed payments under the contract and the residual value of the underlying asset, discounted at the rate implicit in the lease. The Company’s investment in sales-type leases consisted of the following (in thousands): September 30, 2023 Future minimum lease payments to be received $ 256,029 Estimated residual values of leased flight equipment 100,188 Less: Unearned income (48,444) Net Investment in Sales-type Leases $ 307,773 As of September 30, 2023, future minimum lease payments to be received on sales-type leases were as follows (in thousands): Years ending December 31, 2023 (excluding the nine months ended September 30, 2023) $ 6,947 2024 27,786 2025 27,786 2026 27,786 2027 27,786 Thereafter 137,938 Total $ 256,029 |
Flight Equipment Held for Sale
Flight Equipment Held for Sale | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Flight Equipment Held for Sale | Flight Equipment Held for Sale As of September 30, 2023, the Company had 13 aircraft, with a carrying value of $669.9 million, which were held for sale and included in Other assets on the Consolidated Balance Sheets. The Company expects the sale of all 13 aircraft to be completed by end of the second quarter of 2024. As of September 30, 2023, the Company held an aggregate of $639.7 million in purchase deposits pursuant to sale agreements related to 10 of the 13 aircraft, which amount is included in Accrued interest and other payables on the Consolidated Balance Sheets. During the nine months ended September 30, 2023, the Company completed the sale of 18 aircraft from its held for sale portfolio. The Company ceases recognition of depreciation expense once an aircraft is classified as held for sale. As of December 31, 2022, the Company had four aircraft, with a carrying value of $153.5 million, which were held for sale and included in Flight equipment subject to operating leases on the Consolidated Balance Sheets. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 3, 2023, the Company’s board of directors increased the quarterly cash dividend on the Company’s Class A common stock by 5%, from $0.20 per share to $0.21 per share. The Company’s board of directors also approved quarterly cash dividends for the Company’s Series A, B and C Preferred Stock. The following table summarizes the details of the dividends that were declared: Title of each class Cash dividend per share Record Date Payment Date Class A Common Stock $ 0.21 December 15, 2023 January 10, 2024 Series A Preferred Stock $ 0.384375 November 30, 2023 December 15, 2023 Series B Preferred Stock $ 11.625 November 30, 2023 December 15, 2023 Series C Preferred Stock $ 10.3125 November 30, 2023 December 15, 2023 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income (loss) | $ 132,450 | $ 132,401 | $ 128,720 | $ 110,381 | $ 116,277 | $ (468,993) | $ 393,571 | $ (242,334) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Preparation and Crit_2
Basis of Preparation and Critical Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | 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. |
Basis of Accounting | 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. |
Flight equipment | Flight equipment Flight equipment under operating lease is stated at cost less accumulated depreciation. Purchases, major additions and modifications, and interest on deposits during the construction phase are capitalized. The Company generally depreciates passenger aircraft on a straight-line basis over a 25-year life from the date of manufacture to a 15% residual value. The Company generally depreciates freighter aircraft on a straight-line basis over a 35-year life from the date of manufacture to a 15% residual value. Changes in the assumption of useful lives or residual values for aircraft could have a significant impact on the Company’s results of operations and financial condition. Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over the lesser of the remaining life of the flight equipment or the aircraft improvement. In addition, costs paid by us for scheduled maintenance and overhauls are capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred. The Company’s management evaluates on a quarterly basis the need to perform an impairment test whenever facts or circumstances indicate a potential impairment has occurred. An assessment is performed whenever events or changes in circumstances indicate that the carrying amount of an aircraft may not be recoverable. Recoverability of an aircraft’s carrying amount is measured by comparing the carrying amount of the aircraft to future undiscounted net cash flows expected to be generated by the aircraft. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, and estimated residual or scrap values for each aircraft. We develop assumptions used in the recoverability analysis based on our knowledge of active lease contracts, current and future expectations of the global demand for a particular aircraft type, potential for alternative use of aircraft and historical experience in the aircraft leasing market and aviation industry, as well as information received from third-party industry sources. The factors considered in estimating the undiscounted cash flows are affected by changes in future periods due to changes in contracted lease rates, economic conditions, technology, and airline demand for a particular aircraft type. In the event that an aircraft does not meet the recoverability test and the aircraft's carrying amount falls below estimated values from third-party industry sources, the aircraft will be recorded at fair value in accordance with the Company’s Fair Value Policy, resulting in an impairment charge. The |
Debt Financing (Tables)
Debt Financing (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Consolidated Debt | The Company’s consolidated debt as of September 30, 2023 and December 31, 2022 is summarized below: September 30, 2023 December 31, 2022 (in thousands) Unsecured Senior unsecured securities $ 15,944,616 $ 17,095,116 Revolving credit facility 1,778,000 1,020,000 Term financings 798,350 582,950 Total unsecured debt financing 18,520,966 18,698,066 Secured Export credit financing 208,514 11,646 Term financings 103,812 113,717 Total secured debt financing 312,326 125,363 Total debt financing 18,833,292 18,823,429 Less: Debt discounts and issuance costs (187,449) (182,366) Debt financing, net of discounts and issuance costs $ 18,645,843 $ 18,641,063 |
Schedule of Maturities of Debt Outstanding | Maturities of debt outstanding as of September 30, 2023 are as follows (in thousands): Years ending December 31, 2023 $ 26,820 2024 3,102,525 2025 2,424,455 2026 3,708,533 2027 4,467,478 Thereafter 5,103,481 Total $ 18,833,292 |
Flight equipment subject to o_2
Flight equipment subject to operating lease (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of 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, 2023: (in thousands) Net book value as of December 31, 2022 $ 24,538,385 Purchase of aircraft 3,429,479 Depreciation (795,659) Sale of aircraft (906,992) Transferred to Held for Sale (669,899) Net book value as of September 30, 2023 $ 25,595,314 Accumulated depreciation as of September 30, 2023 $ (5,365,755) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Commitments to Acquire Aircraft | Estimated Delivery Years Aircraft Type 2023 2024 2025 2026 2027 Thereafter Total Airbus A220-100/300 6 19 10 18 14 — 67 Airbus A320/321neo (1) 10 20 13 40 40 38 161 Airbus A330-900neo 2 6 — — — — 8 Airbus A350-900/1000 — 4 — — — — 4 Airbus A350F — — — — 4 3 7 Boeing 737-8/9 MAX 6 32 30 16 — — 84 Boeing 787-9/10 — 10 9 1 — — 20 Total (2) 24 91 62 75 58 41 351 (1) The Company’s Airbus A320/321neo aircraft orders include 12 long-range variants and 49 extra long-range variants. (2) The table above reflects Airbus and Boeing aircraft delivery delays based on contractual documentation. |
Schedule of Contractual Commitments for The Acquisition of Aircraft at an Estimated Aggregate Purchase Price | Commitments for the acquisition of these aircraft, calculated at an estimated aggregate purchase price (including adjustments for anticipated inflation) of approximately $22.6 billion as of September 30, 2023, are as follows (in thousands): Years ending December 31, 2023 (excluding the nine months ended September 30, 2023) $ 1,660,591 2024 6,516,990 2025 4,306,517 2026 4,200,731 2027 3,459,362 Thereafter 2,479,725 Total $ 22,623,916 |
Rental Income (Tables)
Rental Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Minimum Future Rentals | As of September 30, 2023, 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, 2023 are as follows (in thousands): Years ending December 31, 2023 (excluding the nine months ended September 30, 2023) $ 585,241 2024 2,335,945 2025 2,200,120 2026 1,962,861 2027 1,745,623 Thereafter 7,265,525 Total $ 16,095,315 |
Earnings_(Loss) Per Share (Tabl
Earnings/(Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted Earnings/(Loss) Per Share | The following table sets forth the reconciliation of basic and diluted earnings/(loss) per share: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands, except share and per share) Basic earnings/(loss) per share: Numerator Net income/(loss) $ 132,450 $ 110,381 $ 393,571 $ (242,334) Preferred stock dividends (10,425) (10,425) (31,275) (31,275) Net income/(loss) attributable to common stockholders $ 122,025 $ 99,956 $ 362,296 $ (273,609) Denominator Weighted-average shares outstanding 111,027,252 110,892,097 110,997,619 111,874,002 Basic earnings/(loss) per share $ 1.10 $ 0.90 $ 3.26 $ (2.45) Diluted earnings/(loss) per share: Numerator Net income/(loss) $ 132,450 $ 110,381 $ 393,571 $ (242,334) Preferred stock dividends (10,425) (10,425) (31,275) (31,275) Net income/(loss) attributable to common stockholders $ 122,025 $ 99,956 $ 362,296 $ (273,609) Denominator Number of shares used in basic computation 111,027,252 110,892,097 110,997,619 111,874,002 Weighted-average effect of dilutive securities 319,547 198,036 385,638 — Number of shares used in per share computation 111,346,799 111,090,133 111,383,257 111,874,002 Diluted earnings/(loss) per share $ 1.10 $ 0.90 $ 3.25 $ (2.45) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Preferred Stock Issued and Outstanding | The following table summarizes the Company’s preferred stock issued and outstanding as of September 30, 2023 (in thousands, except for share amounts and percentages): Shares Issued and Outstanding as of September 30, 2023 Liquidation Preference Issue Date Dividend Rate in Effect at September 30, 2023 Next dividend rate reset date Dividend rate after reset date Series A 10,000,000 $ 250,000 March 5, 2019 6.150 % March 15, 2024 3M Term SOFR (1) plus 3.65% Series B 300,000 300,000 March 2, 2021 4.650 % June 15, 2026 5 Yr U.S. Treasury plus 4.076% Series C 300,000 300,000 October 13, 2021 4.125 % December 15, 2026 5 Yr U.S. Treasury plus 3.149% Total 10,600,000 $ 850,000 (1) 3M Term SOFR includes a credit spread adjustment of 0.10%. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Activities for Unvested RSUs | The following table summarizes the activities for the Company’s unvested RSUs for the nine months ended September 30, 2023: Unvested Restricted Stock Units Number of Weighted-Average Unvested at December 31, 2022 1,514,875 $ 45.90 Granted 704,565 $ 44.73 Vested (229,187) $ 44.19 Forfeited/canceled (379,754) $ 42.52 Unvested at September 30, 2023 1,610,499 $ 46.43 Expected to vest after September 30, 2023 1,769,213 $ 46.17 |
Net Investment in Sales-type _2
Net Investment in Sales-type Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Components of Investment in Sales-Type Leases, Net | The Company’s investment in sales-type leases consisted of the following (in thousands): September 30, 2023 Future minimum lease payments to be received $ 256,029 Estimated residual values of leased flight equipment 100,188 Less: Unearned income (48,444) Net Investment in Sales-type Leases $ 307,773 |
Schedule of Future Minimum Lease Payments to be Received on Sales-Type Lease | As of September 30, 2023, future minimum lease payments to be received on sales-type leases were as follows (in thousands): Years ending December 31, 2023 (excluding the nine months ended September 30, 2023) $ 6,947 2024 27,786 2025 27,786 2026 27,786 2027 27,786 Thereafter 137,938 Total $ 256,029 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Schedule of Dividends Declared | The following table summarizes the details of the dividends that were declared: Title of each class Cash dividend per share Record Date Payment Date Class A Common Stock $ 0.21 December 15, 2023 January 10, 2024 Series A Preferred Stock $ 0.384375 November 30, 2023 December 15, 2023 Series B Preferred Stock $ 11.625 November 30, 2023 December 15, 2023 Series C Preferred Stock $ 10.3125 November 30, 2023 December 15, 2023 |
Company Background and Overvi_2
Company Background and Overview (Details) | 9 Months Ended |
Sep. 30, 2023 aircraft | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of aircraft owned | 448 |
Number of aircraft managed | 79 |
Number of aircraft on order with manufacturers | 351 |
Basis of Preparation and Crit_3
Basis of Preparation and Critical Accounting Policies (Details) | Sep. 30, 2023 |
Passenger Aircraft | |
Schedule of Equity Method Investments [Line Items] | |
Aircraft useful life | 25 years |
Aircraft, residual value | 15% |
Freighter Aircraft | |
Schedule of Equity Method Investments [Line Items] | |
Aircraft useful life | 35 years |
Aircraft, residual value | 15% |
Debt Financing - Consolidated D
Debt Financing - Consolidated Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt financing | $ 18,833,292 | $ 18,823,429 |
Less: Debt discounts and issuance costs | (187,449) | (182,366) |
Debt financing, net of discounts and issuance costs | 18,645,843 | 18,641,063 |
Total unsecured debt financing | ||
Debt Instrument [Line Items] | ||
Total debt financing | 18,520,966 | 18,698,066 |
Senior unsecured securities | ||
Debt Instrument [Line Items] | ||
Total debt financing | 15,944,616 | 17,095,116 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt financing | 1,778,000 | 1,020,000 |
Term financings | ||
Debt Instrument [Line Items] | ||
Total debt financing | 798,350 | 582,950 |
Total secured debt financing | ||
Debt Instrument [Line Items] | ||
Total debt financing | 312,326 | 125,363 |
Export credit financing | ||
Debt Instrument [Line Items] | ||
Total debt financing | 208,514 | 11,646 |
Term financings | ||
Debt Instrument [Line Items] | ||
Total debt financing | $ 103,812 | $ 113,717 |
Debt Financing - Narrative (Det
Debt Financing - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||||
Aug. 31, 2023 USD ($) aircraft | Jun. 30, 2023 USD ($) | May 31, 2023 USD ($) | Sep. 30, 2023 USD ($) aircraft | Oct. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) aircraft | Nov. 06, 2023 USD ($) | May 05, 2023 USD ($) | Dec. 31, 2022 USD ($) aircraft | |
Debt Instrument [Line Items] | |||||||||
Outstanding balance | $ 18,833,292 | $ 18,833,292 | $ 18,823,429 | ||||||
Senior unsecured securities | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding balance | 15,944,616 | 15,944,616 | 17,095,116 | ||||||
Medium Term Note Program Due 2028 | Total unsecured debt financing | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount issued | $ 700,000 | $ 700,000 | |||||||
Interest rate | 5.30% | 5.30% | |||||||
Trust Certificates Due 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount issued | $ 600,000 | $ 600,000 | |||||||
Interest rate | 5.85% | 5.85% | |||||||
Revolving credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding balance | $ 1,778,000 | $ 1,778,000 | $ 1,020,000 | ||||||
Maximum borrowing capacity | $ 7,200,000 | ||||||||
Facility fee | 0.20% | ||||||||
Revolving credit facility | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Increase in borrowing capacity | $ 25,000 | ||||||||
Revolving credit facility | Subsequent Event | Mature May 5, 2027 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, noncurrent | $ 6,800,000 | ||||||||
Revolving credit facility | Subsequent Event | Mature May 5, 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, noncurrent | 320,000 | ||||||||
Revolving credit facility | Subsequent Event | Mature May 5, 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, noncurrent | 32,500 | ||||||||
Revolving credit facility | Secured Overnight Financing Rate (SOFR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest margin | 1.05% | ||||||||
2023 Term Loan | Term financings | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount issued | $ 650,000 | ||||||||
Credit spread adjustment | 0.10% | 0.10% | |||||||
2023 Term Loan | Term financings | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding balance | $ 750,000 | ||||||||
Increase in aggregate term loan capacity | $ 100,000 | ||||||||
2023 Term Loan | Term financings | Secured Overnight Financing Rate (SOFR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest margin | 1.40% | ||||||||
Unsecured Note Due 2024 | Total unsecured debt financing | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount issued | $ 150,000 | $ 150,000 | |||||||
Credit spread adjustment | 0.10% | ||||||||
Debt instrument, term | 1 year | ||||||||
Unsecured Note Due 2024 | Total unsecured debt financing | Secured Overnight Financing Rate (SOFR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest margin | 1.25% | ||||||||
Secured Notes Due 2034 and 2035 | Total secured debt financing | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of aircraft pledged as collateral | aircraft | 2 | ||||||||
Secured Notes Due 2034 | Total secured debt financing | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount issued | $ 112,200 | ||||||||
Secured Notes Due 2034 | Total secured debt financing | 3M SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest margin | 0.42% | ||||||||
Secured Notes Due 2035 | Total secured debt financing | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount issued | $ 101,700 | ||||||||
Secured Notes Due 2035 | Total secured debt financing | 3M SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest margin | 0.42% | ||||||||
Other Debt Financings | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of aircraft pledged as collateral | aircraft | 4 | 4 | 3 | ||||||
Net book value of aircraft pledged as collateral | $ 450,500 | $ 450,500 | $ 212,100 |
Debt Financing - Maturities of
Debt Financing - Maturities of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2023 | $ 26,820 | |
2024 | 3,102,525 | |
2025 | 2,424,455 | |
2026 | 3,708,533 | |
2027 | 4,467,478 | |
Thereafter | 5,103,481 | |
Total | $ 18,833,292 | $ 18,823,429 |
Flight equipment subject to o_3
Flight equipment subject to operating lease - Schedule of Flight Equipment Subject to Operating Lease (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Movement in Property, Plant and Equipment [Roll Forward] | ||||
Depreciation | $ (267,393) | $ (242,503) | $ (795,659) | $ (713,095) |
Flight Equipment | ||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||
Net book value, beginning balance | 24,538,385 | |||
Purchase of aircraft | 3,429,479 | |||
Depreciation | (795,659) | |||
Sale of aircraft | (906,992) | |||
Transferred to Held for Sale | (669,899) | |||
Net book value, ending balance | 25,595,314 | 25,595,314 | ||
Accumulated depreciation as of September 30, 2023 | $ (5,365,755) | $ (5,365,755) |
Flight equipment subject to o_4
Flight equipment subject to operating lease - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 USD ($) aircraft | Nov. 06, 2023 aircraft | Oct. 31, 2022 aircraft | |
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | |||
Number of managed aircraft terminating lease | 8 | ||
Number of aircrafts returned from Russia | 1 | ||
Subsequent Event | |||
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | |||
Number of aircraft under operating lease terminated remaining in Russia | 20 | ||
Flight Equipment | |||
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | |||
Write-off of fleet | $ | $ 791 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) aircraft | Dec. 31, 2022 USD ($) | |
Long-term Purchase Commitment [Line Items] | ||
Number of aircraft on order with manufacturers | aircraft | 351 | |
Purchase obligation | $ 22,623,916 | |
Minimum aircraft delivery delays that could trigger lessee cancellation clauses | 1 year | |
Purchase agreements, termination commencement period | 1 year | |
Non-refundable deposits on aircraft | $ 1,173,382 | $ 1,344,973 |
Aircrafts | ||
Long-term Purchase Commitment [Line Items] | ||
Non-refundable deposits on aircraft | $ 1,200,000 | $ 1,300,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Aircraft Acquisition (Details) | 9 Months Ended |
Sep. 30, 2023 aircraft | |
Aircrafts | |
Long-term Purchase Commitment [Line Items] | |
2023 | 24 |
2024 | 91 |
2025 | 62 |
2026 | 75 |
2027 | 58 |
Thereafter | 41 |
Total | 351 |
Airbus A220-100/300 | |
Long-term Purchase Commitment [Line Items] | |
2023 | 6 |
2024 | 19 |
2025 | 10 |
2026 | 18 |
2027 | 14 |
Thereafter | 0 |
Total | 67 |
Airbus A320/321neo | |
Long-term Purchase Commitment [Line Items] | |
2023 | 10 |
2024 | 20 |
2025 | 13 |
2026 | 40 |
2027 | 40 |
Thereafter | 38 |
Total | 161 |
Number of long-range variant aircraft | 12 |
Number of extra long-range variant aircrafts | 49 |
Airbus A330-900neo | |
Long-term Purchase Commitment [Line Items] | |
2023 | 2 |
2024 | 6 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | 8 |
Airbus A350-900/1000 | |
Long-term Purchase Commitment [Line Items] | |
2023 | 0 |
2024 | 4 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | 4 |
Airbus A350F | |
Long-term Purchase Commitment [Line Items] | |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 4 |
Thereafter | 3 |
Total | 7 |
Boeing 737-8/9 MAX | |
Long-term Purchase Commitment [Line Items] | |
2023 | 6 |
2024 | 32 |
2025 | 30 |
2026 | 16 |
2027 | 0 |
Thereafter | 0 |
Total | 84 |
Boeing 787-9/10 | |
Long-term Purchase Commitment [Line Items] | |
2023 | 0 |
2024 | 10 |
2025 | 9 |
2026 | 1 |
2027 | 0 |
Thereafter | 0 |
Total | 20 |
Commitments and Contingencies_3
Commitments and Contingencies - Aircraft Acquisition at Aggregate Purchase Price (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 (excluding the nine months ended September 30, 2023) | $ 1,660,591 |
2024 | 6,516,990 |
2025 | 4,306,517 |
2026 | 4,200,731 |
2027 | 3,459,362 |
Thereafter | 2,479,725 |
Total | $ 22,623,916 |
Rental Income (Details)
Rental Income (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 (excluding the nine months ended September 30, 2023) | $ 585,241 |
2024 | 2,335,945 |
2025 | 2,200,120 |
2026 | 1,962,861 |
2027 | 1,745,623 |
Thereafter | 7,265,525 |
Total | $ 16,095,315 |
Earnings_(Loss) Per Share - Nar
Earnings/(Loss) Per Share - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 shares | Sep. 30, 2022 shares | Sep. 30, 2023 class_of_stock shares | Sep. 30, 2022 shares | Dec. 31, 2022 shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Number of classes of common stock | class_of_stock | 2 | ||||
Common Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Number of shares excluded related to restricted stock units | 0 | 0 | 0 | 329,947 | |
Restricted Stock Units (RSUs) | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Number of shares excluded related to restricted stock units | 965,788 | 976,509 | |||
Class B Non‑Voting Common Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Common stock, outstanding (in shares) | 0 | 0 | 0 |
Earnings_(Loss) Per Share - Rec
Earnings/(Loss) Per Share - Reconciliation of Basic and Diluted Earnings/Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator | ||||||||
Net income/(loss) | $ 132,450 | $ 132,401 | $ 128,720 | $ 110,381 | $ 116,277 | $ (468,993) | $ 393,571 | $ (242,334) |
Preferred stock dividends | (10,425) | (10,425) | (31,275) | (31,275) | ||||
Net income/(loss) attributable to common stockholders, basic | $ 122,025 | $ 99,956 | $ 362,296 | $ (273,609) | ||||
Denominator | ||||||||
Weighted-average shares outstanding (in shares) | 111,027,252 | 110,892,097 | 110,997,619 | 111,874,002 | ||||
Basic earnings/(loss) per share (in dollars per share) | $ 1.10 | $ 0.90 | $ 3.26 | $ (2.45) | ||||
Numerator | ||||||||
Net income/(loss) | $ 132,450 | $ 132,401 | $ 128,720 | $ 110,381 | $ 116,277 | $ (468,993) | $ 393,571 | $ (242,334) |
Preferred stock dividends | (10,425) | (10,425) | (31,275) | (31,275) | ||||
Net income/(loss) attributable to common stockholders, diluted | $ 122,025 | $ 99,956 | $ 362,296 | $ (273,609) | ||||
Denominator | ||||||||
Number of shares used in basic computation (in shares) | 111,027,252 | 110,892,097 | 110,997,619 | 111,874,002 | ||||
Weighted-average effect of dilutive securities (in shares) | 319,547 | 198,036 | 385,638 | 0 | ||||
Number of shares used in per share computation (in shares) | 111,346,799 | 111,090,133 | 111,383,257 | 111,874,002 | ||||
Diluted earnings/(loss) per share (in dollars per share) | $ 1.10 | $ 0.90 | $ 3.25 | $ (2.45) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Reported Value Measurement | ||
Fair Value Measurements | ||
Debt financing | $ 18,800 | $ 18,800 |
Level 2 | ||
Fair Value Measurements | ||
Debt financing | 17,600 | 17,500 |
Recurring Basis | Foreign Exchange Contract | Level 2 | ||
Fair Value Measurements | ||
Derivative liability | $ 4.2 | $ 2.5 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||
Preferred stock, issued (in shares) | 10,600,000 | |
Preferred stock, outstanding (in shares) | 10,600,000 | |
Preferred stock, aggregate liquidation preference | $ 850,000 | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 111,027,252 | 110,892,097 |
Common stock, outstanding (in shares) | 111,027,252 | 110,892,097 |
Class B Non‑Voting Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 0 | 0 |
Common stock, outstanding (in shares) | 0 | 0 |
Noncumulative Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 10,600,000 | 10,600,000 |
Preferred stock, outstanding (in shares) | 10,600,000 | 10,600,000 |
Preferred stock, aggregate liquidation preference | $ 850,000 | $ 850,000 |
Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, outstanding (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, dividend rate | 6.15% | 6.15% |
Preferred stock, aggregate liquidation preference | $ 250,000 | $ 250,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 300,000 | 300,000 |
Preferred stock, outstanding (in shares) | 300,000 | 300,000 |
Preferred stock, dividend rate | 4.65% | 4.65% |
Preferred stock, aggregate liquidation preference | $ 300,000 | $ 300,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 300,000 | 300,000 |
Preferred stock, outstanding (in shares) | 300,000 | 300,000 |
Preferred stock, dividend rate | 4.125% | 4.125% |
Preferred stock, aggregate liquidation preference | $ 300,000 | $ 300,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Shareholders' Equity - Preferre
Shareholders' Equity - Preferred Stock Issued and Outstanding (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | |||
Preferred stock, issued (in shares) | 10,600,000 | ||
Preferred stock, outstanding (in shares) | 10,600,000 | ||
Preferred stock, aggregate liquidation preference | $ 850,000 | ||
2023 Term Loan | Term financings | |||
Class of Stock [Line Items] | |||
Credit spread adjustment | 0.10% | 0.10% | |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, issued (in shares) | 10,000,000 | 10,000,000 | |
Preferred stock, outstanding (in shares) | 10,000,000 | 10,000,000 | |
Preferred stock, aggregate liquidation preference | $ 250,000 | $ 250,000 | |
Preferred stock, dividend rate | 6.15% | 6.15% | |
Series A Preferred Stock | 3M SOFR | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate, basis spread | 3.65% | ||
Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, issued (in shares) | 300,000 | 300,000 | |
Preferred stock, outstanding (in shares) | 300,000 | 300,000 | |
Preferred stock, aggregate liquidation preference | $ 300,000 | $ 300,000 | |
Preferred stock, dividend rate | 4.65% | 4.65% | |
Series B Preferred Stock | US Treasury (UST) Interest Rate | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate, basis spread | 4.076% | ||
Series C Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, issued (in shares) | 300,000 | 300,000 | |
Preferred stock, outstanding (in shares) | 300,000 | 300,000 | |
Preferred stock, aggregate liquidation preference | $ 300,000 | $ 300,000 | |
Preferred stock, dividend rate | 4.125% | 4.125% | |
Series C Preferred Stock | US Treasury (UST) Interest Rate | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate, basis spread | 3.149% |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) criteria shares | Sep. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ | $ 41 | $ 41 | ||
Weighted-average period of recognition of unrecognized stock-based compensation cost | 1 year 9 months 25 days | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of different vesting criteria | criteria | 4 | |||
Stock-based compensation expense | $ | $ 8.7 | $ 5.8 | $ 23.3 | $ 9.8 |
Number of shares other than options granted | 704,565 | |||
Restricted Stock Units (RSUs) | Vesting Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted Stock Units (RSUs) | Vesting Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Restricted Stock Units (RSUs) | Vesting Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Restricted Stock With Total Shareholder Return Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares other than options granted | 121,608 | |||
Restricted Stock Units (RSUs), Book Value | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares other than options granted | 243,206 | |||
2023 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant (in shares) | 4,140,023 | 4,140,023 |
Stock-based Compensation - Unve
Stock-based Compensation - Unvested Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Unvested Restricted Stock Units, Number of Shares | |
Unvested at the beginning of the period (in shares) | shares | 1,514,875 |
Granted (in shares) | shares | 704,565 |
Vested (in shares) | shares | (229,187) |
Forfeited/canceled (in shares) | shares | (379,754) |
Unvested at the end of the period (in shares) | shares | 1,610,499 |
Expected to vest after the end of the period (in shares) | shares | 1,769,213 |
Unvested Restricted Stock Units, Weighted-Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 45.90 |
Granted (in dollars per share) | $ / shares | 44.73 |
Vested (in dollars per share) | $ / shares | 44.19 |
Forfeited/canceled (in dollars per share) | $ / shares | 42.52 |
Unvested at the end of the period (in dollars per share) | $ / shares | 46.43 |
Expected to vest after the end of the period (in dollars per share) | $ / shares | $ 46.17 |
Aircraft Under Management (Deta
Aircraft Under Management (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 USD ($) aircraft aircraft_management_platform entity joint_venture | Dec. 31, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Number of aircraft managed | 79 | |
Number of aircraft management platforms | aircraft_management_platform | 2 | |
Percentage of non-controlling interest ownership, number of entities | entity | 2 | |
Blackbird Capital I and Blackbird Capital II | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of aircraft | 34 | |
Number of joint ventures participated | joint_venture | 2 | |
Percentage of equity ownership | 9.50% | |
Equity method investment | $ | $ 65.9 | $ 64.7 |
Thunderbolt Platform | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of aircraft | 45 | |
Investment in aircraft sold | $ | $ 8.8 | $ 8.8 |
Thunderbolt Platform | Aircraft Held For Sale | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of entities which aircraft is managed | entity | 3 | |
Thunderbolt II And Thunderbolt III | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of noncontrolling interest | 5% |
Net Investment in Sales-type _3
Net Investment in Sales-type Leases - Narrative (Details) | Sep. 30, 2023 aircraft |
Leases [Abstract] | |
Sales-type lease, number of aircrafts | 11 |
Net Investment in Sales-type _4
Net Investment in Sales-type Leases - Components of Investment in Sales-Type Leases, Net (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
Future minimum lease payments to be received | $ 256,029 |
Estimated residual values of leased flight equipment | 100,188 |
Less: Unearned income | (48,444) |
Net Investment in Sales-type Leases | $ 307,773 |
Net Investment in Sales-type _5
Net Investment in Sales-type Leases - Future Minimum Lease Payments to be Received on Sales-type Lease (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 (excluding the nine months ended September 30, 2023) | $ 6,947 |
2024 | 27,786 |
2025 | 27,786 |
2026 | 27,786 |
2027 | 27,786 |
Thereafter | 137,938 |
Total | $ 256,029 |
Flight Equipment Held for Sale
Flight Equipment Held for Sale (Details) $ in Millions | Sep. 30, 2023 USD ($) aircraft | Dec. 31, 2022 USD ($) aircraft |
Disposal Group, Held-for-sale, Not Discontinued Operations | Thirteen Aircrafts | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of aircrafts | 13 | |
Carrying value of assets held for sale | $ | $ 669.9 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Ten Aircrafts | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of aircrafts | 10 | |
Purchase deposits | $ | $ 639.7 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Four Aircrafts | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of aircrafts | 4 | |
Carrying value of assets held for sale | $ | $ 153.5 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Eighteen Aircrafts | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of aircrafts | 18 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||||
Nov. 03, 2023 | Nov. 02, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Subsequent Events | ||||||||||
Cash dividends declared per share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.185 | $ 0.185 | $ 0.185 | $ 0.60 | $ 0.555 | ||
Class A Common Stock | Subsequent Event | ||||||||||
Subsequent Events | ||||||||||
Cash dividend (as percent) | 5% | |||||||||
Cash dividends declared per share (in dollars per share) | $ 0.21 | $ 0.20 | ||||||||
Series A Preferred Stock | Subsequent Event | ||||||||||
Subsequent Events | ||||||||||
Cash dividends declared per share (in dollars per share) | 0.384375 | |||||||||
Series B Preferred Stock | Subsequent Event | ||||||||||
Subsequent Events | ||||||||||
Cash dividends declared per share (in dollars per share) | 11.625 | |||||||||
Series C Preferred Stock | Subsequent Event | ||||||||||
Subsequent Events | ||||||||||
Cash dividends declared per share (in dollars per share) | $ 10.3125 |