AIR LEASE CORP: Unpacking a Strong 2025 Performance

Welcome to our summary of AIR LEASE CORPORATION's (NYSE: AL) annual report, the Form 10-K for the fiscal year ended December 31, 2025. Based in Los Angeles, California, AL is a well-established company known for its transparent and timely reporting. This report offers clear, actionable insights for you, the retail investor, into the company's operations and financial health.

Business Overview: The Business of Flight AIR LEASE CORP is a leading global aircraft leasing company. AL acquires new commercial aircraft directly from manufacturers like Boeing and Airbus, then leases them to airlines worldwide. Its business model focuses on maintaining a modern, fuel-efficient fleet, offering flexible leasing solutions, and managing a robust portfolio of aircraft throughout their lifecycle, including re-leasing and eventual sale. This strategy generates stable, long-term revenue streams and ensures high asset utilization.

Competitive Position: AIR LEASE CORP operates in a highly competitive global aircraft leasing market. Its competitive advantages include:

• Large Scale and Global Presence: AL serves a diverse range of airlines worldwide.
• Young and Technologically Advanced Fleet: This attracts airlines seeking fuel-efficient and modern aircraft.
• Strong Manufacturer Relationships: Long-standing ties with major aircraft manufacturers (Boeing and Airbus) ensure access to new aircraft deliveries.
• Experienced Management: AL's management team and operational expertise in aircraft acquisition, leasing, and remarketing contribute to its market leadership. The competitive landscape includes other large independent aircraft lessors, financial institutions, and some airlines that own a significant portion of their fleets. Competition primarily revolves around lease rates, aircraft availability, lease terms, and customer service.

Financial Health (Debt, Cash, Liquidity): Maintaining a robust financial position is central to AIR LEASE CORP's strategy. The company's capital structure primarily consists of senior unsecured notes, secured debt, and revolving credit facilities. AL actively manages its debt maturity profile to ensure adequate liquidity and minimize refinancing risk, maintaining a well-laddered schedule of maturities. Operating cash flows, proceeds from debt issuances, and drawdowns on credit facilities primarily finance capital expenditures for new aircraft acquisitions. AL maintains significant undrawn capacity under its revolving credit facilities, providing substantial financial flexibility. The company's strong credit ratings also facilitate access to capital markets on favorable terms, supporting its growth initiatives and ongoing operations.

Future Outlook & Growth Drivers: Looking ahead, AIR LEASE CORP is strategically positioned to capitalize on the anticipated long-term growth in global air travel. Its strategy focuses on:

• Fleet Modernization: Continuously acquiring new, fuel-efficient aircraft to meet airline demand for lower operating costs and reduced emissions.
• Diversified Customer Base: Expanding global reach and customer relationships to mitigate regional economic risks.
• Disciplined Capital Allocation: Balancing investments in new aircraft with debt reduction and shareholder returns.
• Market Leadership: Leveraging industry expertise and strong relationships with manufacturers and airlines. AL anticipates continued demand for leased aircraft as airlines seek capital-efficient ways to expand and renew their fleets.

Key Risk Factors: While the outlook is positive, investors should be aware of potential risks. These include:

• Global Economic Downturns: Recessions or geopolitical events can reduce air travel demand, impacting lease rates and aircraft values.
• Interest Rate Fluctuations: As a capital-intensive business, rising interest rates can increase borrowing costs and affect profitability.
• Airline Financial Health: Defaults or bankruptcies by airline customers could lead to repossessions and lost revenue.
• Aircraft Values: The market value of aircraft can fluctuate, impacting asset values and potential gains/losses on sales.
• Supply Chain Disruptions: Delays in aircraft deliveries from manufacturers could affect growth plans.
• Regulatory Changes: Evolving environmental regulations or aviation policies could impact operations.

This summary provides a high-level overview of AIR LEASE CORP's strategic direction in 2025. For a complete understanding, we encourage reviewing the full 10-K filing.