Air Lease Corporation

Overview

• Global aircraft leasing company that buys modern, fuel-efficient jets directly from Airbus and Boeing and leases them to airlines worldwide to generate returns on equity.
• Sells aircraft from its fleet to third parties (other leasing companies, financial services firms, airlines and investors) and provides fleet management services for a management fee.
• Business drivers include fleet growth, lease terms, debt costs and aggregate indebtedness, supplemented by gains from aircraft sales and management fees.
• Operates across Asia Pacific, Europe, the Middle East and Africa, Central America, South America and Mexico, and the U.S. and Canada.
• Strategy focuses on replacement markets (older aircraft replaced with newer, more fuel-efficient jets) and, in less saturated regions, both replacement and fleet-expansion opportunities.

Key operational metrics (as of December 31, 2025)

• Owned fleet: 490 aircraft
• Managed fleet: 45 aircraft (60 as of 12/31/2024)
• Net book value of owned fleet: $29.1 billion (up 3.1% from $28.2 billion at 12/31/2024)
• Weighted average age of owned fleet: 4.9 years
• Weighted average lease term remaining: 7.2 years
• Global customer base: 102 airlines in 53 countries
• Lease utilization: 100% for the year ended 12/31/2025
• Delivery commitments: 218 aircraft to be purchased from Airbus and Boeing for delivery through 2031
• Aggregate commitment for purchases: $12.6 billion
• Orderbook long-term lease detail: 99% of deliveries through 2027 on long-term leases; 82% through 2028; roughly 64% of the entire orderbook through 2031
• Committed minimum future rental payments: $28.9 billion total
  • $19.6 billion in contracted minimum rental payments on aircraft in the existing fleet
  • $9.3 billion in minimum future payments related to aircraft delivering 2026–2031
• Independent operation until closing of the pending merger

Financial highlights (year ended December 31, 2025)

• Total revenues: $3.0 billion (up 10.3% vs. 2024)
• Gains from aircraft sales: $244.4 million (2025) versus $169.7 million (2024); 48 aircraft sold in 2025 versus 39 in 2024
• Net income attributable to common stockholders: $1.0 billion, or $9.29 per diluted share (2025), up from $372.1 million, or $3.33 per diluted share (2024)
• Adjusted net income before income taxes: $718.4 million, or $6.40 per adjusted diluted share (2025), up from $574.2 million, or $5.13 per adjusted diluted share (2024)

Financing and liquidity:

• Available liquidity at year-end 2025: approximately $7.5 billion
  • Unrestricted cash: $466.4 million
  • Undrawn balances under committed unsecured revolving credit facility: about $7.0 billion
  • Net of approximately $1.4 billion in commercial paper borrowings
• Total debt outstanding: $19.9 billion
  • Fixed-rate debt: 76.8%
  • Unsecured debt: 97.5%
  • Composite cost of funds: 4.15%
• Sources of financing include lease cash flows, aircraft sales, internally generated funds and debt financing; long-term debt strategy emphasizes unsecured debt in global bank and investment-grade markets with limited use of export credits or other secured financing.

Merger trajectory and implications

• Proposed merger with Sumisho Air Lease Corporation Designated Activity Company (Parent) and Takeoff Merger Sub Inc.
  • Consideration: each issued and outstanding share of Class A common stock will be converted into the right to receive $65.00 in cash, without interest
  • Parent ownership includes Sumitomo Corporation, SMBC Aviation Capital Limited, affiliates of Apollo Capital Management, L.P., and affiliates of Brookfield Asset Management Ltd.
  • Series B, Series C and Series D preferred stock will remain outstanding and be deemed shares of preferred stock of the surviving company
  • Stockholders approved the merger on December 18, 2025
  • After the Effective Time, novation or transfer of OEM contracts to SMBC AC is expected; leases for aircraft delivering from the orderbook after the Effective Time are expected to transfer to SMBC AC
  • Expected closing: first half of 2026, subject to customary closing conditions
  • Until closing, the company will continue to operate independently of the Parent

Notes

• Data reflect board-approved figures and descriptions provided in the 2025 Form 10-K (Item 1 — Business) and related sections, including the discussion of the merger and related arrangements.