BENGALURU: Aircraft lessor Air Lease said on Thursday (Aug 3) it expects more demand opportunities from potential delivery delays at Airbus due to Pratt & Whitney engine issues, which could further boost its lease rates.

The company reported a net profit of US$122 million (RM556.2 million), or US$1.10 per share, for the second quarter ended June 30, compared with a profit of US$105.9 million, or 95 cents per share, a year ago. It beat analysts’ average estimate of US$1.07, according to Refinitv data.

Revenue rose 20.7% to US$672.9 million in the quarter and beat expectations of US$660.3 million.

Airlines looking to cash in on a surge in global travel have been struggling with limited supply of jets and are increasingly turning to lessors to augment their capacity.

Higher lease rates helped Air Lease post better-than-expected results for the quarter through June, sending its shares up 2.66% after the bell.

“We are watching Airbus deliveries carefully in the face of RTX’s announcement on manufacturing defects on certain of its gear turbofan engines,” CEO John Plueger said on an investor call.

Last week, the company had also received a further incremental delay notice from Boeing on its MAX deliveries.

The lessor also expects record global temperatures to add further environmental pressure on airlines to replace older planes, positioning it to capture the strong demand.

The fleet of Air Lease comprised 448 owned aircraft and 80 managed aircraft as of June 30, with 359 new planes on order from Boeing and Airbus set to deliver through 2029. – Reuters