Air Lease beats profit estimates on increased demand for airplanes

(Reuters) – Aircraft lessor Air Lease Corp beat fourth-quarter profit estimates, on the back of increased appetite from airlines trying to expand their capacity to cater to a robust travel demand.

Leasing companies are enjoying increased interest for their new and used aircraft as a boom in global travel demand has seen more airlines opting for their services amid delivery delays from plane manufacturers Boeing Co and Airbus SE.

“We expect to see continued growth and strength in global air traffic and airline yields in 2023, offering a counterbalance to global macroeconomic cross-currents,” said Steven Udvar-Házy, Executive Chairman of the Board.

Udvar-Házy added Air Lease does not see delivery delays at Boeing and Airbus abating.

Shares of Air Lease were up about 2.8% in extended trade, after the company reported a fourth-quarter revenue of $601.6 million, compared with analyst estimates of $587.3 million.

The company reported an adjusted profit of $1.42 per share for the quarter ended Dec. 31, compared with analysts average expectations of $1.01 per share.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Krishna Chandra Eluri)