Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 05, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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, 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 Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 114,124,428 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001487712 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | AL | |
Security Exchange Name | NYSE | |
Series A Preferred Stock | ||
Document 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 | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 1,327,999 | $ 1,734,155 |
Restricted cash | 24,194 | 23,612 |
Flight equipment subject to operating leases | 24,331,511 | 23,729,742 |
Less accumulated depreciation | (3,557,552) | (3,349,392) |
Flight equipment subject to operating leases, net | 20,773,959 | 20,380,350 |
Deposits on flight equipment purchases | 1,767,489 | 1,800,119 |
Other assets | 1,295,740 | 1,276,939 |
Total assets | 25,189,381 | 25,215,175 |
Liabilities and Shareholders' Equity | ||
Accrued interest and other payables | 451,094 | 492,473 |
Debt financing, net of discounts and issuance costs | 16,166,904 | 16,518,338 |
Security deposits and maintenance reserves on flight equipment leases | 1,075,845 | 1,072,704 |
Rentals received in advance | 132,684 | 142,915 |
Deferred tax liability | 934,642 | 916,404 |
Total liabilities | 18,761,169 | 19,142,834 |
Shareholders' Equity | ||
Paid-in capital | 3,088,302 | 2,793,178 |
Retained earnings | 3,339,588 | 3,277,599 |
Accumulated other comprehensive (loss) / income | (922) | 325 |
Total shareholders' equity | 6,428,212 | 6,072,341 |
Total liabilities and shareholders' equity | 25,189,381 | 25,215,175 |
Series A Preferred Stock | ||
Shareholders' Equity | ||
Preferred Stock, $0.01 par value; 50,000,000 shares authorized; 10,300,000 (aggregate liquidation preference of $550,000) and 10,000,000 (aggregate liquidation preference of $250,000) shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 103 | 100 |
Class A Common Stock | ||
Shareholders' Equity | ||
Common Stock | 1,141 | 1,139 |
Class B Non-Voting Common Stock | ||
Shareholders' Equity | ||
Common Stock |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | 10,300,000 | 10,000,000 |
Preferred Stock, shares outstanding | 10,300,000 | 10,000,000 |
Series A liquidation preference | $ 550,000 | $ 250,000 |
Class A Common Stock | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized shares | 500,000,000 | 500,000,000 |
Common Stock, issued shares | 114,120,862 | 113,852,896 |
Common Stock, outstanding shares | 114,120,862 | 113,852,896 |
Class B Non-Voting Common Stock | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized shares | 10,000,000 | 10,000,000 |
Common Stock, issued shares | 0 | 0 |
Common Stock, outstanding shares | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | ||
Rental of flight equipment | $ 468,095 | $ 496,687 |
Aircraft sales, trading, and other | 6,732 | 14,700 |
Total revenues | 474,827 | 511,387 |
Expenses | ||
Interest | 117,986 | 107,541 |
Amortization of debt discounts and issuance costs | 12,025 | 10,528 |
Interest expense | 130,011 | 118,069 |
Depreciation of flight equipment | 208,965 | 188,895 |
Selling, general, and administrative | 26,914 | 28,322 |
Stock-based compensation | 5,408 | 4,429 |
Total expenses | 371,298 | 339,715 |
Income before taxes | 103,529 | 171,672 |
Income tax expense | (19,437) | (34,521) |
Net income | 84,092 | 137,151 |
Preferred stock dividends | (3,844) | (3,844) |
Net income available to common stockholders | 80,248 | 133,307 |
Other Comprehensive Income/(Loss): | ||
Foreign currency translation adjustment | (3,807) | 23,477 |
Change in fair value of hedged transactions | 2,221 | (25,386) |
Total tax benefit on other comprehensive income/loss | 339 | 431 |
Other Comprehensive income/(loss), net of tax | (1,247) | (1,478) |
Total comprehensive income available for common stockholders | $ 79,001 | $ 131,829 |
Earnings per share of common stock: | ||
Basic (in dollars per share) | $ 0.70 | $ 1.17 |
Diluted (in dollars per share) | $ 0.70 | $ 1.17 |
Weighted-average shares outstanding | ||
Basic (in shares) | 113,958,403 | 113,471,945 |
Diluted (in shares) | 114,237,109 | 113,785,028 |
Dividends declared per share of common stock | $ 0.16 | $ 0.15 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Class A Common StockCommon Stock | Series A Preferred StockRetained Earnings | Series A Preferred Stock | Preferred Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Total |
Balance at Dec. 31, 2019 | $ 1,134 | $ 100 | $ 2,777,601 | $ 2,846,106 | $ (1,397) | $ 5,623,544 | ||
Balance (in shares) at Dec. 31, 2019 | 113,350,267 | 10,000,000 | ||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Issuance of common stock upon exercise of options and vesting of restricted stock units | $ 4 | 2,021 | 2,025 | |||||
Issuance of common stock upon exercise of options and vesting of restricted stock units (in shares) | 480,978 | |||||||
Stock-based compensation expense | 4,429 | 4,429 | ||||||
Cash dividends | (17,045) | (17,045) | ||||||
Preferred dividends | $ (3,844) | $ (3,844) | ||||||
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax | (1,478) | (1,478) | ||||||
Tax withholdings on stock based compensation | $ (2) | (8,411) | (8,413) | |||||
Tax withholdings on stock based compensation (in shares) | (191,334) | |||||||
Net income | 137,151 | 137,151 | ||||||
Balance at Mar. 31, 2020 | $ 1,136 | $ 100 | 2,775,640 | 2,962,368 | (2,875) | 5,736,369 | ||
Balance (in shares) at Mar. 31, 2020 | 113,639,911 | 10,000,000 | ||||||
Balance at Dec. 31, 2020 | $ 1,139 | $ 100 | 2,793,178 | 3,277,599 | 325 | 6,072,341 | ||
Balance (in shares) at Dec. 31, 2020 | 113,852,896 | 10,000,000 | ||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Issuance of preferred stock | $ 3 | 295,446 | 295,449 | |||||
Issuance of preferred stock (in shares) | 300,000 | |||||||
Issuance of common stock upon exercise of options and vesting of restricted stock units | $ 4 | 1,437 | 1,441 | |||||
Issuance of common stock upon exercise of options and vesting of restricted stock units (in shares) | 425,232 | |||||||
Stock-based compensation expense | 5,408 | 5,408 | ||||||
Cash dividends | (18,259) | (18,259) | ||||||
Preferred dividends | $ (3,844) | $ (3,844) | ||||||
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax | (1,247) | (1,247) | ||||||
Tax withholdings on stock based compensation | $ (2) | (7,167) | (7,169) | |||||
Tax withholdings on stock based compensation (in shares) | (157,266) | |||||||
Net income | 84,092 | 84,092 | ||||||
Balance at Mar. 31, 2021 | $ 1,141 | $ 103 | $ 3,088,302 | $ 3,339,588 | $ (922) | $ 6,428,212 | ||
Balance (in shares) at Mar. 31, 2021 | 114,120,862 | 10,300,000 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||
Cash dividends declared per share (in dollars per share) | $ 0.16 | $ 0.15 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Activities | ||
Net income | $ 84,092 | $ 137,151 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of flight equipment | 208,965 | 188,895 |
Stock-based compensation | 5,408 | 4,429 |
Deferred taxes | 18,577 | 33,302 |
Amortization of debt discounts and issuance costs | 12,025 | 10,528 |
Amortization of prepaid lease costs | 10,790 | 10,454 |
Loss / (gain) on aircraft sales, trading and other activity | 1,825 | (5,554) |
Changes in operating assets and liabilities: | ||
Other assets | (37,247) | (88,411) |
Accrued interest and other payables | (59,914) | (47,858) |
Rentals received in advance | (10,231) | (8,913) |
Net cash provided by operating activities | 234,290 | 234,023 |
Investing Activities | ||
Acquisition of flight equipment under operating lease | (404,379) | (511,232) |
Payments for deposits on flight equipment purchases | (103,382) | (174,589) |
Proceeds from aircraft sales, trading and other activity | 65,070 | |
Acquisition of aircraft furnishings, equipment and other assets | (41,923) | (51,576) |
Net cash used in investing activities | (549,684) | (672,327) |
Financing Activities | ||
Issuance of common stock upon exercise of options | 1,441 | 2,025 |
Cash dividends paid on Class A common stock | (18,216) | (17,003) |
Net proceeds from preferred stock issuance | 295,449 | |
Preferred dividends paid | (3,844) | (3,844) |
Tax withholdings on stock-based compensation | (7,169) | (8,413) |
Net change in unsecured revolving facility | 495,000 | |
Proceeds from debt financings | 791,645 | 1,449,873 |
Payments in reduction of debt financings | (1,157,577) | (1,093,268) |
Debt issuance costs | (1,335) | (2,902) |
Security deposits and maintenance reserve receipts | 21,278 | 50,083 |
Security deposits and maintenance reserve disbursements | (11,852) | (17,927) |
Net cash (used)/provided by financing activities | (90,180) | 853,624 |
Net (decrease)/increase in cash | (405,574) | 415,320 |
Cash, cash equivalents and restricted cash at beginning of period | 1,757,767 | 338,061 |
Cash, cash equivalents and restricted cash at end of period | 1,352,193 | 753,381 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest, including capitalized interest of $13,543 and $13,261 at March 31, 2021 and 2020, respectively | 177,685 | 141,060 |
Cash paid for income taxes | 1,101 | 2,149 |
Supplemental Disclosure of Noncash Activities | ||
Buyer furnished equipment, capitalized interest and deposits on flight equipment purchases applied to acquisition of flight equipment | 176,618 | 191,318 |
Cash dividends declared on Class A common stock, not yet paid | $ 18,259 | $ 17,046 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid for interest, capitalized interest | $ 13,543 | $ 13,261 |
Company Background and Overview
Company Background and Overview | 3 Months Ended |
Mar. 31, 2021 | |
Company Background and Overview | |
Company Background and Overview | Note 1. Company Background and Overview Air 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 new commercial jet aircraft directly from 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 March 31, 2021, the Company owned a fleet of 342 aircraft in its operating lease portfolio, managed 83 aircraft and had 349 aircraft on order with aircraft manufacturers and 25 aircraft purchase options. In addition to its leasing activities, the Company sells aircraft from its operating lease portfolio 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 | 3 Months Ended |
Mar. 31, 2021 | |
Basis of Preparation and Critical Accounting Policies | |
Basis of Preparation and Critical Accounting Policies | Note 2. 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 March 31, 2021, and for all periods presented. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the operating results expected for the year ending December 31, 2021. 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, 2020. |
Debt Financing
Debt Financing | 3 Months Ended |
Mar. 31, 2021 | |
Debt Financing | |
Debt Financing | Note 3. Debt Financing The Company’s consolidated debt as of March 31, 2021 and December 31, 2020 is summarized below (in thousands): March 31, December 31, 2021 2020 Unsecured Senior notes $ 15,287,351 $ 15,583,544 Term financings 808,250 811,550 Total unsecured debt financing 16,095,601 16,395,094 Secured Term financings 223,418 276,032 Export credit financing 23,292 24,955 Total secured debt financing 246,710 300,987 Total debt financing 16,342,311 16,696,081 Less: Debt discounts and issuance costs (175,407) (177,743) Debt financing, net of discounts and issuance costs $ 16,166,904 $ 16,518,338 Senior unsecured notes (including Medium-Term Note Program) As of March 31, 2021, the Company had $15.3 billion in senior unsecured notes outstanding. As of December 31, 2020, the Company had $15.6 billion in senior unsecured notes outstanding. In January 2021, the Company issued $750.0 million in aggregate principal amount of 0.70% Medium-Term Notes due 2024. Unsecured revolving credit facility The Company has an unsecured revolving credit facility (the “Revolving Credit Facility”). As of March 31, 2021 and December 31, 2020, the Company did not have any amounts outstanding under its Revolving Credit Facility. During the three months ended March 31, 2021, the Company increased the aggregate capacity of its Revolving Credit Facility by $200.0 million. As of March 31, 2021, the aggregate capacity of the Revolving Credit Facility was approximately $6.2 billion. Borrowings under the Revolving Credit Facility accrue interest at either (a) LIBOR plus a margin of 1.05% per year or (b) an alternative base rate plus a margin of 0.05% per year, subject, in each case, to increases or decreases based on declines or improvements in the credit ratings for the Company’s debt. The Company is required to pay a facility fee of 0.20% per year (also subject to increases or decreases based on declines or improvements in the credit ratings for the Company’s debt) in respect of total commitments under 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 2021, the Company amended and extended its Revolving Credit Facility pursuant to which, among other things, extended the final maturity date from May 5, 2023 to May 5, 2025 and increased the total revolving commitments to approximately $6.4 billion as of May 6, 2021, representing an increase of 6.7% from December 31, 2020. As of May 6, 2021, lenders held revolving commitments totaling approximately $5.7 billion that mature on May 5, 2025, commitments totaling $575.0 million that mature on May 5, 2023 and commitments totaling $105.0 million that mature on May 5, 2022. The amended Revolving Credit Facility also added benchmark replacement language with respect to LIBOR based on Alternative Reference Rates Committee LIBOR fallback language and amended certain financial maintenance covenants, including removing the maximum consolidated leverage ratio covenant, increasing the required level for minimum consolidated shareholders equity and removing the mechanism for suspending the minimum interest coverage ratio if certain debt ratings are met. Secured debt financing As of March 31, 2021, the outstanding balance on the Company’s secured debt financings, including its secured warehouse facility and its export credit financing, was $246.7 million and it had pledged 10 aircraft as collateral with a net book value of $493.2 million. As of December 31, 2020, the outstanding balance on the Company’s secured debt financings, including its secured warehouse facility and its export credit financing, was $301.0 million and it had pledged 12 aircraft as collateral with a net book value of $628.7 million. As of March 31, 2021 and December 31, 2020, all of the Company’s secured obligations are recourse in nature. Maturities Maturities of debt outstanding as of March 31, 2021 are as follows (in thousands): Years ending December 31, 2021 $ 806,903 2022 2,763,882 2023 2,490,951 2024 2,293,665 2025 2,313,889 Thereafter 5,673,021 Total $ 16,342,311 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 4. Commitments and Contingencies As of March 31, 2021, the Company had commitments to acquire a total of 349 new aircraft for delivery through 2027 as follows: Estimated Delivery Years Aircraft Type 2021 2022 2023 2024 2025 Thereafter Total Airbus A220-300 (1) — 3 10 15 12 10 50 Airbus A320/321neo (2) 25 23 22 26 19 20 135 Airbus A330-900neo 3 7 4 — — — 14 Airbus A350-900/1000 4 3 4 5 1 — 17 Boeing 737-7/8/9 MAX 19 22 24 27 8 — 100 Boeing 787-9/10 13 8 7 5 — — 33 Total 64 66 71 78 40 30 349 (1) In addition to the Company’s commitments, as of March 31, 2021, the Company had options to acquire up to 25 Airbus A220 aircraft. If exercised, deliveries of these aircraft are scheduled to commence in 2023 and continue through 2028. (2) The Company’s Airbus A320/321neo aircraft orders include 36 long-range variants and 29 extra long-range variants. Pursuant to the Company's purchase agreements with Boeing and Airbus for new aircraft, the Company and each manufacturer agree to contractual delivery dates for each aircraft ordered. These dates can change for a variety of reasons, and in the last several years manufacturing delays have significantly impacted the Company’s actual delivery dates. The Company has experienced delivery delays for certain of its Airbus orderbook aircraft, including the A320neo family aircraft and the A330neo aircraft. The worldwide grounding of the Boeing 737 MAX aircraft (“737 MAX”) beginning in March 2019 has also resulted in material delivery delays of those aircraft from our orderbook. The Federal Aviation Administration (“FAA”) and the European Union Aviation Safety Agency (“EASA”) lifted their grounding order on November 18, 2020 and January 27, 2021, respectively. Although many additional countries and regulatory entities have approved return to service of the aircraft, the 737 MAX still remains grounded in a number of jurisdictions. Deliveries resumed for markets where the aircraft had been approved to return to service until April 2021, when a specific group of 737 MAX aircraft were removed from service due to an electrical power system issue unrelated to the previous grounding order. On April 28, 2021, the FAA issued a new airworthiness directive detailing the modifications required before the impacted aircraft can return to service. Boeing expects the required modifications to take a few days per aircraft and has halted deliveries of 737 MAX aircraft until the airworthiness directive has been complied with, though the timeline to return to service remains uncertain at this time. The ongoing COVID-19 pandemic has also caused delivery delays of aircraft in our orderbook. As discussed in further detail in Note 11, “Impact of COVID-19 Pandemic,” the COVID-19 pandemic has resulted in numerous travel restrictions and business shutdowns or other operating limitations. The aircraft purchase commitments discussed above also could be impacted by lease cancellations. The Company's leases typically provide that the Company and the airline customer each have a cancellation right related to certain aircraft delivery delays. The Company’s purchase agreements with Boeing and Airbus also generally provide that the Company and the manufacturer each have cancellation rights that typically parallel the Company’s cancellation rights in its leases. The Company’s leases and its purchase agreements with Boeing and Airbus generally provide for cancellation rights starting at one year after the original contractual delivery date, regardless of cause. As of May 6, 2021, the Company has canceled its orders for 22 737 MAX aircraft with Boeing. The Company has commitments for the acquisition of 349 aircraft for delivery through 2027, calculated at an estimated aggregate purchase price (including adjustments for anticipated inflation) of approximately $23.3 billion at March 31, 2021, which are due as follows (in thousands): Years ending December 31, 2021 $ 5,203,345 2022 5,274,025 2023 4,856,491 2024 4,624,159 2025 1,973,066 Thereafter 1,341,255 Total $ 23,272,341 The Company has made non-refundable deposits on the aircraft for which the Company has commitments to purchase of approximately $1.8 billion as of each of March 31, 2021 and December 31, 2020, 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. Further, the Company would be exposed to breach of contract claims by its lessees and manufacturers. |
Rental Income
Rental Income | 3 Months Ended |
Mar. 31, 2021 | |
Rental Income | |
Rental Income | Note 5. Rental Income At March 31, 2021, minimum future rentals on non-cancellable operating leases of flight equipment in the Company’s fleet are as follows (in thousands): Years ending December 31, 2021 (excluding the three months ended March 31, 2021) $ 1,489,687 2022 1,873,920 2023 1,723,465 2024 1,616,901 2025 1,472,252 Thereafter 5,204,134 Total $ 13,380,359 |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Net Earnings Per Share | |
Net Earnings Per Share | Note 6. Earnings Per Share Basic earnings per share is computed by dividing net income 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 March 31, 2021, 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 months ended March 31, 2021, 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 1,085,311 and 990,100 shares related to restricted stock units for which the performance metric had yet to be achieved as of March 31, 2021 and 2020, respectively. The following table sets forth the reconciliation of basic and diluted earnings per share (in thousands, except share and per share amounts): Three Months Ended March 31, 2021 2020 Basic earnings per share: Numerator Net income $ 84,092 $ 137,151 Preferred stock dividends (3,844) (3,844) Net income available to common stockholders $ 80,248 $ 133,307 Denominator Weighted-average common shares outstanding 113,958,403 113,471,945 Basic earnings per share $ 0.70 $ 1.17 Diluted earnings per share: Numerator Net income $ 84,092 $ 137,151 Preferred stock dividends (3,844) (3,844) Net income available to common stockholders $ 80,248 $ 133,307 Denominator Number of shares used in basic computation 113,958,403 113,471,945 Weighted-average effect of dilutive securities 278,706 313,083 Number of shares used in per share computation 114,237,109 113,785,028 Diluted earnings per share $ 0.70 $ 1.17 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 7. 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 was 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 March 31, 2021, the estimated fair value of the foreign currency exchange derivative asset was $16.7 million. As of December 31, 2020, the estimated fair value of the foreign currency exchange derivative asset was $14.4 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 March 31, 2021 was approximately $16.9 billion compared to a book value of $16.3 billion. The estimated fair value of debt financing as of December 31, 2020 was $17.6 billion compared to a book value of $16.7 billion. The following financial instruments are not measured at fair value on the Company’s Consolidated Balance Sheets at March 31, 2021, but require disclosure of their fair values: cash and cash equivalents and restricted cash. The estimated fair value of such instruments at March 31, 2021 and December 31, 2020 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 | 3 Months Ended |
Mar. 31, 2021 | |
Shareholders' Equity | |
Shareholders' Equity | Note 8. Shareholders’ Equity The Company was authorized to issue 500,000,000 shares of Class A common stock, $0.01 par value, at March 31, 2021 and December 31, 2020. As of March 31, 2021 and December 31, 2020, the Company had 114,120,862 and 113,852,896 Class A common shares issued outstanding , respectively. The Company did not have any shares of Class B non-voting common stock, $0.01 par value, issued or outstanding as of The Company was authorized to issue 50,000,000 shares of preferred stock, $0.01 par value, at March 31, 2021 and December 31, 2020. As of March 31, 2021, the Company had 10,000,000 shares of 6.15% Fixed-to-Floating Rate Non- Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”) issued and outstanding with an aggregate liquidation preference of $250.0 million ($25.00 per share) and 300,000 shares of 4.65% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”) with an aggregate liquidation preference of $300.0 million ($1,000 per share). As of December 31, 2020, the Company had 10,000,000 shares of Series A Preferred Stock issued and outstanding with an aggregate liquidation preference of $250.0 million. On March 2, 2021, the Company issued 300,000 shares of Series B Preferred Stock, $0.01 par value, with a liquidation preference of $1,000 per share. The Company will pay dividends on the Series B Preferred Stock only when, as and if declared by the board of directors. Dividends will accrue, on a non-cumulative basis, on the stated amount of The Company may redeem shares of the Series B Preferred Stock at its option, in whole or in part, from time to time, on any dividend payment date on June 15, 2026, for cash at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without accumulation of any undeclared dividends. The Company may also redeem shares of the Series B Preferred Stock at the Company’s option under certain other limited conditions. The Series B Preferred Stock ranks on a parity with the Series A Preferred Stock. The following table summarizes the Company’s preferred stock issued and outstanding as of March 31, 2021 (in thousands, except for share and per share amounts and percentages): Shares Issued Dividend and Liquidation Rate in Outstanding Preference as Effect at as of March of March 31, March 31, Next dividend Dividend rate after reset 31, 2021 2021 Issue Date 2021 rate reset date date Fixed-to-floating-rate: Series A 10,000,000 $ 250,000 March 5, 2019 6.150 % March 15, 2024 3M LIBOR plus 3.65% Fixed-rate reset: Series B 300,000 300,000 March 2, 2021 4.650 % June 15, 2026 US 5 Y + 4.076% Total Preferred Stock 10,300,000 $ 550,000 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Stock-based Compensation | |
Stock-based Compensation | Note 9. Stock-based Compensation On May 7, 2014, the stockholders of the Company approved the Air Lease Corporation 2014 Equity Incentive Plan (the “2014 Plan”). Upon approval of the 2014 Plan, no new awards may be granted under the Amended and Restated 2010 Equity Incentive Plan (the “2010 Plan”). As of March 31, 2021, the number of stock options (“Stock Options”) and restricted stock units (“RSUs”) authorized under the 2014 Plan is approximately 4,505,773. The Company recorded $5.4 million and $4.4 million of stock-based compensation expense for the three months ended March 31, 2021 and 2020, respectively. Stock Options A summary of stock option activity for the three months ended March 31, 2021 follows: Remaining Aggregate Exercise Contractual Term Intrinsic Value Shares Price (in years) (in thousands) (1) Balance at December 31, 2020 50,000 $ 28.80 0.32 $ 781 Granted — $ — — $ — Exercised (50,000) $ 28.80 — $ 993 Forfeited/canceled — $ — — $ — Balance at March 31, 2021 — $ — — $ — (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of the Company’s Class A common stock as of the respective date. As of March 31, 2021, there were no unrecognized compensation costs related to outstanding stock options. For the three months ended March 31, 2021 and 2020, there were no stock-based compensation expenses related to Stock Options. Restricted Stock Units Compensation cost for stock awards is measured at the grant date based on fair value and recognized over the vesting period. The fair value of book value and time based 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 Total Shareholder Return (“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 three months ended March 31, 2021, the Company granted 577,736 RSUs of which 116,599 are TSR RSUs. The following table summarizes the activities for the Company’s unvested RSUs for the three months ended March 31, 2021: Unvested Restricted Stock Units Weighted-Average Number of Grant-Date Shares Fair Value Unvested at December 31, 2020 1,466,060 $ 42.03 Granted 577,736 $ 47.67 Vested (375,180) $ 43.85 Forfeited/canceled (65,373) $ 49.89 Unvested at March 31, 2021 1,603,243 $ 43.31 Expected to vest after March 31, 2021 1,472,863 $ 43.58 As of March 31, 2021, there was $42.2 million of unrecognized compensation cost related to unvested stock-based payments granted to employees. Total unrecognized compensation cost will be recognized over a weighted-average remaining period of 2.28 years. |
Aircraft under management
Aircraft under management | 3 Months Ended |
Mar. 31, 2021 | |
Aircraft under management | |
Aircraft under management | Note 10. Aircraft Under Management As of March 31, 2021, the Company managed 83 aircraft across three aircraft management platforms. The Company managed 51 aircraft through three separate entities under its Thunderbolt platform, 28 aircraft through the Blackbird investment funds and four on behalf of a financial institution. The Company managed 28 aircraft on behalf of third-party investors, through two investment funds, Blackbird Capital I, LLC and Blackbird Capital II, LLC (“Blackbird II”). These funds invest in commercial aircraft and lease them to airlines throughout the world. The Company provides management services to these funds for a fee. As of March 31, 2021, the Company's non-controlling interests in each fund are 9.5% and are accounted for under the equity method of accounting. The Company’s investment in these funds aggregated $52.7 million and $52.6 million as of March 31, 2021 and December 31, 2020, respectively, and is included in Other assets on the Consolidated Balance Sheets. The Company continues to source aircraft investment opportunities for Blackbird II. As of March 31, 2021, Blackbird II has remaining equity capital commitments to acquire up to approximately $1.0 billion in aircraft assets, for which the Company has committed to fund up to $29.1 million related to these potential investments. Additionally, the Company continues to manage aircraft that it sells through its Thunderbolt platform. As of March 31, 2021, the Company managed 51 aircraft through its Thunderbolt platform across three separate transactions. The Company has non-controlling interests in two of these entities of approximately 5.0%, which are accounted for under the cost method of accounting. The Company’s total investment in aircraft sold through its Thunderbolt platform was $9.3 million as of each of March 31, 2021 and December 31, 2020 and is included in Other assets on the Consolidated Balance Sheets. |
Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic | 3 Months Ended |
Mar. 31, 2021 | |
COVID 19 | |
Unusual or Infrequent Item, or Both [Line Items] | |
Impact of COVID-19 Pandemic | Note 11. Impact of COVID-19 Pandemic In response to the COVID-19 pandemic, governments around the world have implemented numerous measures to try to contain the virus, including travel restrictions. These measures, coupled with a significant decrease in spending on travel as a result of COVID-19, have materially impacted airline traffic and operations throughout the world, including the Company's airline customers. While domestic and regional airline traffic have improved from the lows in 2020, air travel demand remains challenged, especially in the international and business travel segments of the market. Beginning in the fourth quarter of 2020, several COVID-19 vaccines were approved for use in a number of countries. The United States Centers for Disease Control and Prevention recently issued new guidance reducing travel restrictions for vaccinated travelers, though global health agencies such as the World Health Organization, among others, have yet to issue formal guidance, and travel restrictions remain in place in many parts of the world. Since the pandemic began in the first quarter of 2020, the Company has received requests from its customers for accommodations such as deferrals of lease payments or other lease concessions. On a case-by-case basis, the Company has agreed to accommodations with approximately 63% of its lessees. Generally, these accommodations have been in the form of partial lease deferrals for payments that were due during 2020, typically with a short repayment period. The majority of these deferrals are to be repaid within 12 months from the date the deferrals were granted, and in many cases, include lease extensions. While the majority of the accommodations are in the form of lease deferrals, we have also entered into some lease restructurings, which typically included lease extensions, resulting in a decrease of $37.0 million in revenue for the three months ended March 31, 2021. The Company remains in active discussions with its airline customers and may continue to provide accommodations on a case-by-case basis. While lease deferrals may delay the Company's receipt of cash, the Company generally recognizes the lease revenue during the period even if a deferral is provided to the lessee, unless it determines collection is not reasonably assured. The Company monitors all lessees with past due lease payments and discusses relevant operational and financial issues facing those lessees in order to determine an appropriate course of action. In addition, if collection is not reasonably assured, the Company will not recognize rental income for amounts due under the Company’s lease contracts and will recognize revenue for such lessees on a cash basis. The Company did not recognize rental revenue of $48.7 million for the three months ended March 31, 2021 because lease receivables exceeded the lease security package held and collection was not reasonably assured for certain lessees. Aircraft on lease with these lessees represented approximately 15.3% of our fleet by net book value as of March 31, 2021. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events | |
Subsequent Events | Note 12. Subsequent Events On May 5, 2021, the Company’s board of directors approved quarterly dividends for the Company’s Class A common stock, Series A Preferred Stock and Series B 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 $ 0.16 June 8, 2021 July 9, 2021 Series A Preferred Stock $ 0.384375 May 31, 2021 June 15, 2021 Series B Preferred Stock $ 13.304167 May 31, 2021 June 15, 2021 In addition, the Company’s board of directors also approved a six-month extension on the Company’s share repurchase program, which authorized repurchase of up to $100.0 million of the Company’s Class A common stock through December 31, 2021. |
Debt Financing (Tables)
Debt Financing (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Financing | |
Summary of consolidated debt | The Company’s consolidated debt as of March 31, 2021 and December 31, 2020 is summarized below (in thousands): March 31, December 31, 2021 2020 Unsecured Senior notes $ 15,287,351 $ 15,583,544 Term financings 808,250 811,550 Total unsecured debt financing 16,095,601 16,395,094 Secured Term financings 223,418 276,032 Export credit financing 23,292 24,955 Total secured debt financing 246,710 300,987 Total debt financing 16,342,311 16,696,081 Less: Debt discounts and issuance costs (175,407) (177,743) Debt financing, net of discounts and issuance costs $ 16,166,904 $ 16,518,338 |
Schedule of maturities of debt outstanding | Maturities of debt outstanding as of March 31, 2021 are as follows (in thousands): Years ending December 31, 2021 $ 806,903 2022 2,763,882 2023 2,490,951 2024 2,293,665 2025 2,313,889 Thereafter 5,673,021 Total $ 16,342,311 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies | |
Schedule of commitments to acquire aircraft | Estimated Delivery Years Aircraft Type 2021 2022 2023 2024 2025 Thereafter Total Airbus A220-300 (1) — 3 10 15 12 10 50 Airbus A320/321neo (2) 25 23 22 26 19 20 135 Airbus A330-900neo 3 7 4 — — — 14 Airbus A350-900/1000 4 3 4 5 1 — 17 Boeing 737-7/8/9 MAX 19 22 24 27 8 — 100 Boeing 787-9/10 13 8 7 5 — — 33 Total 64 66 71 78 40 30 349 (1) In addition to the Company’s commitments, as of March 31, 2021, the Company had options to acquire up to 25 Airbus A220 aircraft. If exercised, deliveries of these aircraft are scheduled to commence in 2023 and continue through 2028. (2) The Company’s Airbus A320/321neo aircraft orders include 36 long-range variants and 29 extra long-range variants. |
Schedule of commitments for the acquisition of aircraft and other equipment at an estimated aggregate purchase price | The Company has commitments for the acquisition of 349 aircraft for delivery through 2027, calculated at an estimated aggregate purchase price (including adjustments for anticipated inflation) of approximately $23.3 billion at March 31, 2021, which are due as follows (in thousands): Years ending December 31, 2021 $ 5,203,345 2022 5,274,025 2023 4,856,491 2024 4,624,159 2025 1,973,066 Thereafter 1,341,255 Total $ 23,272,341 |
Rental Income (Tables)
Rental Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Rental Income | |
Schedule of minimum future rentals on non-cancellable operating leases of flight equipment | At March 31, 2021, minimum future rentals on non-cancellable operating leases of flight equipment in the Company’s fleet are as follows (in thousands): Years ending December 31, 2021 (excluding the three months ended March 31, 2021) $ 1,489,687 2022 1,873,920 2023 1,723,465 2024 1,616,901 2025 1,472,252 Thereafter 5,204,134 Total $ 13,380,359 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Net Earnings Per Share | |
Schedule of reconciliation of basic and diluted net income per share | The following table sets forth the reconciliation of basic and diluted earnings per share (in thousands, except share and per share amounts): Three Months Ended March 31, 2021 2020 Basic earnings per share: Numerator Net income $ 84,092 $ 137,151 Preferred stock dividends (3,844) (3,844) Net income available to common stockholders $ 80,248 $ 133,307 Denominator Weighted-average common shares outstanding 113,958,403 113,471,945 Basic earnings per share $ 0.70 $ 1.17 Diluted earnings per share: Numerator Net income $ 84,092 $ 137,151 Preferred stock dividends (3,844) (3,844) Net income available to common stockholders $ 80,248 $ 133,307 Denominator Number of shares used in basic computation 113,958,403 113,471,945 Weighted-average effect of dilutive securities 278,706 313,083 Number of shares used in per share computation 114,237,109 113,785,028 Diluted earnings per share $ 0.70 $ 1.17 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Shareholders' Equity | |
Schedule of preferred stock issued and outstanding | The following table summarizes the Company’s preferred stock issued and outstanding as of March 31, 2021 (in thousands, except for share and per share amounts and percentages): Shares Issued Dividend and Liquidation Rate in Outstanding Preference as Effect at as of March of March 31, March 31, Next dividend Dividend rate after reset 31, 2021 2021 Issue Date 2021 rate reset date date Fixed-to-floating-rate: Series A 10,000,000 $ 250,000 March 5, 2019 6.150 % March 15, 2024 3M LIBOR plus 3.65% Fixed-rate reset: Series B 300,000 300,000 March 2, 2021 4.650 % June 15, 2026 US 5 Y + 4.076% Total Preferred Stock 10,300,000 $ 550,000 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stock-based Compensation | |
Summary of stock option activity | Remaining Aggregate Exercise Contractual Term Intrinsic Value Shares Price (in years) (in thousands) (1) Balance at December 31, 2020 50,000 $ 28.80 0.32 $ 781 Granted — $ — — $ — Exercised (50,000) $ 28.80 — $ 993 Forfeited/canceled — $ — — $ — Balance at March 31, 2021 — $ — — $ — (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of the Company’s Class A common stock as of the respective date. |
Summary of activities for unvested RSUs | Unvested Restricted Stock Units Weighted-Average Number of Grant-Date Shares Fair Value Unvested at December 31, 2020 1,466,060 $ 42.03 Granted 577,736 $ 47.67 Vested (375,180) $ 43.85 Forfeited/canceled (65,373) $ 49.89 Unvested at March 31, 2021 1,603,243 $ 43.31 Expected to vest after March 31, 2021 1,472,863 $ 43.58 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events | |
Schedule of dividends declared | Title of each class Cash dividend per share Record Date Payment Date Class A Common Stock $ 0.16 June 8, 2021 July 9, 2021 Series A Preferred Stock $ 0.384375 May 31, 2021 June 15, 2021 Series B Preferred Stock $ 13.304167 May 31, 2021 June 15, 2021 |
Company Background and Overvi_2
Company Background and Overview (Details) | 3 Months Ended |
Mar. 31, 2021aircraft | |
Organization | |
Number of aircraft owned | 342 |
Number of aircraft managed | 83 |
Number of aircraft on order with manufacturers | 349 |
Number of aircraft purchase options | 25 |
Debt Financing (Details)
Debt Financing (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2021USD ($) | Mar. 31, 2021USD ($)aircraft | May 06, 2021USD ($) | Dec. 31, 2020USD ($)aircraft | |
Debt financing | ||||
Total debt financing | $ 16,342,311 | $ 16,696,081 | ||
Less: Debt discounts and issuance costs | (175,407) | (177,743) | ||
Debt financing, net of discounts and issuance costs | 16,166,904 | 16,518,338 | ||
Unsecured Debt | ||||
Debt financing | ||||
Total debt financing | 16,095,601 | 16,395,094 | ||
Senior Notes | ||||
Debt financing | ||||
Total debt financing | 15,287,351 | 15,583,544 | ||
Medium Term Note Program Due 2021 [Member] | ||||
Debt financing | ||||
Principal amount issued | $ 750,000 | |||
Interest rate (as a percent) | 0.70% | |||
Unsecured Term financings | ||||
Debt financing | ||||
Total debt financing | $ 808,250 | 811,550 | ||
Revolving Credit Facility | ||||
Debt financing | ||||
Increase in maximum borrowing capacity | 200,000 | |||
Maximum borrowing capacity | $ 6,200 | |||
Increase in Term Facility | $ 6,400,000 | |||
Line of credit increase in borrowing capacity percentage | 6.70% | |||
Facility fee (as a percent) | 0.20% | |||
Revolving Credit Facility | LIBOR | ||||
Debt financing | ||||
Interest margin (as a percent) | 1.05% | |||
Revolving Credit Facility | ABR | ||||
Debt financing | ||||
Interest margin (as a percent) | 0.05% | |||
Unsecured Revolving Credit Facility Mature On 5 May 2025 | ||||
Debt financing | ||||
Revolving commitments held by lenders | $ 5,700,000 | |||
Unsecured Revolving Credit Facility Mature On 5 May 2023 | ||||
Debt financing | ||||
Revolving commitments held by lenders | 575,000 | |||
Unsecured Revolving Credit Facility Mature On 5 May 2022 | ||||
Debt financing | ||||
Revolving commitments held by lenders | $ 105,000 | |||
Secured Debt | ||||
Debt financing | ||||
Total debt financing | $ 246,710 | 300,987 | ||
Secured debt financing | $ 246,700 | $ 301,000 | ||
Number of aircraft pledged as collateral | aircraft | 10 | 12 | ||
Net book value of aircraft pledged as collateral | $ 493,200 | $ 628,700 | ||
Term Financings | ||||
Debt financing | ||||
Total debt financing | 223,418 | 276,032 | ||
Export Credit Financing | ||||
Debt financing | ||||
Total debt financing | $ 23,292 | $ 24,955 |
Debt Financing - Maturities of
Debt Financing - Maturities of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Maturities | ||
2021 | $ 806,903 | |
2022 | 2,763,882 | |
2023 | 2,490,951 | |
2024 | 2,293,665 | |
2025 | 2,313,889 | |
Thereafter | 5,673,021 | |
Total | $ 16,342,311 | $ 16,696,081 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | May 06, 2021aircraft | Mar. 31, 2021USD ($)aircraftitem | Dec. 31, 2020USD ($) |
Commitments to acquire aircraft | |||
Minimum aircraft delivery delays that could trigger lessee cancellation clauses (in years) | 1 year | ||
Commitments for the acquisition of the aircraft and other equipment | |||
2021 | $ | $ 5,203,345 | ||
2022 | $ | 5,274,025 | ||
2023 | $ | 4,856,491 | ||
2024 | $ | 4,624,159 | ||
2025 | $ | 1,973,066 | ||
Thereafter | $ | 1,341,255 | ||
Total | $ | 23,272,341 | ||
Deposit Assets | $ | $ 1,800,000 | $ 1,800,000 | |
Aircrafts | |||
Commitments to acquire aircraft | |||
2021 | 64 | ||
2022 | 66 | ||
2023 | 71 | ||
2024 | 78 | ||
2025 | 40 | ||
Thereafter | 30 | ||
Total | 349 | ||
Airbus A220-300 | |||
Commitments to acquire aircraft | |||
2022 | 3 | ||
2023 | 10 | ||
2024 | 15 | ||
2025 | 12 | ||
Thereafter | 10 | ||
Total | 50 | ||
Number of purchase agreement options | item | 25 | ||
Airbus A320/321neo | |||
Commitments to acquire aircraft | |||
2021 | 25 | ||
2022 | 23 | ||
2023 | 22 | ||
2024 | 26 | ||
2025 | 19 | ||
Thereafter | 20 | ||
Total | 135 | ||
Number of long-range variants | item | 36 | ||
Number of extra long-range variants | item | 29 | ||
Airbus A330-900neo | |||
Commitments to acquire aircraft | |||
2021 | 3 | ||
2022 | 7 | ||
2023 | 4 | ||
Total | 14 | ||
Airbus A350-900/1000 | |||
Commitments to acquire aircraft | |||
2021 | 4 | ||
2022 | 3 | ||
2023 | 4 | ||
2024 | 5 | ||
2025 | 1 | ||
Total | 17 | ||
Boeing 737-7/8/9 MAX | |||
Commitments to acquire aircraft | |||
2021 | 19 | ||
2022 | 22 | ||
2023 | 24 | ||
2024 | 27 | ||
2025 | 8 | ||
Total | 100 | ||
Boeing 787-9/10 | |||
Commitments to acquire aircraft | |||
2021 | 13 | ||
2022 | 8 | ||
2023 | 7 | ||
2024 | 5 | ||
Total | 33 | ||
Boeing 737-8/9 MAX | |||
Commitments to acquire aircraft | |||
Long Term Purchase Commitment Quantity Required Aircraft Canceled | 22 |
Rental Income (Details)
Rental Income (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Minimum future rentals on non-cancelable operating leases of flight equipment | |
2021 (excluding the three months ended March 31, 2021) | $ 1,489,687 |
2022 | 1,873,920 |
2023 | 1,723,465 |
2024 | 1,616,901 |
2025 | 1,472,252 |
Thereafter | 5,204,134 |
Total | $ 13,380,359 |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)item$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | |
Anti-dilutive securities | ||
Number of classes of common stock | item | 2 | |
Numerator | ||
Net income available to common stockholders | $ | $ 80,248 | $ 133,307 |
Denominator | ||
Weighted-average common shares outstanding | 113,958,403 | 113,471,945 |
Basic earnings per share (in dollars per share) | $ / shares | $ 0.70 | $ 1.17 |
Numerator | ||
Net income | $ | $ 84,092 | $ 137,151 |
Preferred stock dividends | $ | (3,844) | (3,844) |
Net income available to common stockholders | $ | $ 80,248 | $ 133,307 |
Denominator | ||
Number of shares used in basic computation | 113,958,403 | 113,471,945 |
Weighted-average effect of dilutive securities (in shares) | 278,706 | 313,083 |
Number of shares used in per share computation | 114,237,109 | 113,785,028 |
Diluted earnings per share | $ / shares | $ 0.70 | $ 1.17 |
Restricted Stock Units | ||
Anti-dilutive securities | ||
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares) | 1,085,311 | 990,100 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Recurring and Non-recurring (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Recurring basis | ||
Fair Value Measurements | ||
Assets | $ 16.7 | $ 14.4 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Financing (Details) - USD ($) $ in Billions | Mar. 31, 2021 | Dec. 31, 2020 |
Book Value | ||
Financial Instruments Not Measured at Fair Value | ||
Debt financing | $ 16.3 | $ 16.7 |
Level 2 | ||
Financial Instruments Not Measured at Fair Value | ||
Debt financing | $ 16.9 | $ 17.6 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 02, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred Stock, shares issued | 10,300,000 | 10,000,000 | |
Preferred Stock, shares outstanding | 10,300,000 | 10,000,000 | |
Preferred Stock, Liquidation Preference, Value | $ 550,000 | $ 250,000 | |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common Stock, authorized shares | 500,000,000 | 500,000,000 | |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares issued | 114,120,862 | 113,852,896 | |
Common stock, shares outstanding | 114,120,862 | 113,852,896 | |
Class B Non-Voting Common Stock | |||
Class of Stock [Line Items] | |||
Common Stock, authorized shares | 10,000,000 | 10,000,000 | |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares issued | 0 | 0 | |
Common stock, shares outstanding | 0 | 0 | |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, shares issued | 10,000,000 | 10,000,000 | |
Preferred Stock, shares outstanding | 10,000,000 | 10,000,000 | |
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock | 6.15% | ||
Preferred Stock, Liquidation Preference, Value | $ 250,000 | $ 250,000 | |
Preferred Stock, Liquidation Preference, per share | $ 25 | ||
Preferred Stock, spread | 3.65% | ||
Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||
Preferred Stock, shares issued | 300,000 | 300,000 | |
Preferred Stock, shares outstanding | 300,000 | ||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock | 4.65% | 4.65% | |
Preferred Stock, Liquidation Preference, Value | $ 300,000 | ||
Preferred Stock, Liquidation Preference, per share | $ 1,000 | $ 1,000 | |
Preferred Stock, state amount | $ 1,000 | ||
Preferred Stock, term | 5 years | 5 years | |
Preferred Stock, spread | 4.076% | 4.076% | |
Preferred Stock, redemption price (in dollars per share) | $ 1,000 |
Shareholders' Equity - Preferre
Shareholders' Equity - Preferred Stock (Details) - USD ($) $ in Thousands | Mar. 02, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Shareholders' equity | |||
Preferred Stock, shares issued | 10,300,000 | 10,000,000 | |
Preferred Stock, shares outstanding | 10,300,000 | 10,000,000 | |
Preferred Stock, Liquidation Preference, Value | $ 550,000 | $ 250,000 | |
Series A Preferred Stock | |||
Shareholders' equity | |||
Preferred Stock, shares issued | 10,000,000 | 10,000,000 | |
Preferred Stock, shares outstanding | 10,000,000 | 10,000,000 | |
Preferred Stock, Liquidation Preference, Value | $ 250,000 | $ 250,000 | |
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock | 6.15% | ||
Preferred Stock, spread | 3.65% | ||
Series B Preferred Stock | |||
Shareholders' equity | |||
Preferred Stock, shares issued | 300,000 | 300,000 | |
Preferred Stock, shares outstanding | 300,000 | ||
Preferred Stock, Liquidation Preference, Value | $ 300,000 | ||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock | 4.65% | 4.65% | |
Preferred Stock, term | 5 years | 5 years | |
Preferred Stock, spread | 4.076% | 4.076% |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | May 07, 2014 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Stock-based Compensation | ||||
Unrecognized compensation cost | $ 42,200 | |||
Equity Incentive Plan 2010 | ||||
Shares | ||||
Granted (in shares) | 0 | |||
Equity Incentive Plan 2014 | ||||
Stock-based Compensation | ||||
Number of shares authorized | 4,505,773 | |||
Employee and Directors Stock Options | ||||
Stock-based Compensation | ||||
Stock-based compensation | $ 0 | $ 0 | ||
Unrecognized compensation cost | $ 0 | |||
Shares | ||||
Balance at the beginning of the period (in shares) | 50,000 | |||
Exercised (in shares) | (50,000) | |||
Balance at the end of the period (in shares) | 50,000 | |||
Exercise Price | ||||
Balance at the beginning of the period (in dollars per share) | $ 28.80 | |||
Exercised (in dollars per share) | $ 28.80 | |||
Balance at the end of the period (in dollars per share) | $ 28.80 | |||
Remaining Contractual Term | ||||
Remaining Contractual Term (in years) | 3 months 25 days | |||
Aggregate Intrinsic Value | ||||
Balance at the beginning of the period | $ 781 | |||
Exercised | 993 | |||
Balance at the end of the period | $ 781 | |||
Restricted Stock Units | ||||
Stock-based Compensation | ||||
Stock-based compensation | $ 5,400 | $ 4,400 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Stock-based compensation expense | |
Unrecognized compensation cost | $ | $ 42.2 |
Weighted-average period of recognition of unrecognized stock-based compensation cost | 2 years 3 months 10 days |
Restricted Stock Units | |
Unvested Restricted Stock Units, Number of Shares | |
Unvested at the beginning of the period (in shares) | 1,466,060 |
Granted (in shares) | 577,736 |
Vested (in shares) | (375,180) |
Forfeited/canceled (in shares) | (65,373) |
Unvested at the end of the period (in shares) | 1,603,243 |
Expected to vest after the end of the period (in shares) | 1,472,863 |
Unvested Restricted Stock Units, Weighted-Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 42.03 |
Granted (in dollars per share) | $ / shares | 47.67 |
Vested (in dollars per share) | $ / shares | 43.85 |
Forfeited/canceled (in dollars per share) | $ / shares | 49.89 |
Unvested at the end of the period (in dollars per share) | $ / shares | 43.31 |
Expected to vest after the end of the period (in dollars per share) | $ / shares | $ 43.58 |
Restricted Stock With Total Shareholder Return Conditions | |
Unvested Restricted Stock Units, Number of Shares | |
Granted (in shares) | 116,599 |
Aircraft under management (Deta
Aircraft under management (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)itemaircraft | Dec. 31, 2020USD ($) | |
Investments | ||
Number of aircraft managed | 83 | |
Number of platforms | 3 | |
Total unfunded commitment | $ | $ 29.1 | |
Financial Institution | ||
Investments | ||
Number of aircraft managed | 4 | |
Third-Party Investors | ||
Investments | ||
Number of aircraft managed | 28 | |
Thunderbolt | ||
Investments | ||
Number of aircraft managed | 51 | |
Number of investing funds | item | 2 | |
Equity method investment | $ | $ 9.3 | |
Number of aircraft sale transactions | item | 3 | |
Non-controlling interest (as a percent) | 5.00% | |
Cost Method Investments | $ | $ 9.3 | 9.3 |
Blackbird | ||
Investments | ||
Number of aircraft managed | 28 | |
Number of investing funds | item | 2 | |
Percentage of equity ownership | 9.50% | |
Equity method investment | $ | $ 52.7 | $ 52.6 |
Blackbird II | ||
Investments | ||
Total unfunded commitment | $ | $ 1,000 |
Impact of COVID-19 Pandemic (De
Impact of COVID-19 Pandemic (Details) - COVID 19 $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Unusual or Infrequent Item, or Both [Line Items] | |
Accommodation arrangement percentage of lessees | 63.00% |
Decrease In Revenue Due To Lease Restructuring | $ 37 |
Unrecognized rental revenue | $ 48.7 |
Percentage of lessees in fleet | 15.30% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | May 05, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 |
Subsequent Events | ||||
Quarterly cash dividends on common stock | $ 0.16 | $ 0.15 | ||
Subsequent Event | Class A Common Stock | ||||
Subsequent Events | ||||
Quarterly cash dividends on common stock | $ 0.16 | |||
Amount of common stock repurchase authorized | $ 100 | |||
Subsequent Event | Series A Preferred Stock | ||||
Subsequent Events | ||||
Cash dividend per share preferred stock | 0.384375 | |||
Subsequent Event | Series B Preferred Stock | ||||
Subsequent Events | ||||
Cash dividend per share preferred stock | $ 13.304167 |