Air Lease CEO John Plueger revealed in an investor call that the company had recently received additional delay notices for 2023 and 2024 deliveries, with one OEM advising delays could extend through 2028.
Airlines frustrated by the limited supply of jets have turned to aircraft lessors to increase capacity and capitalize on surging travel demand. Consequently, lease rates have risen, contributing to Air Lease's better-than-expected Q1 earnings.
Despite benefiting from the increased demand, the Los Angeles-based leasing giant, with a $24 billion order backlog, expects compensation for late deliveries and is in talks with both planemakers to determine the extent and duration of the delays. As of March 31, Air Lease had committed to purchasing 376 aircraft from Boeing and Airbus, with deliveries scheduled through 2029.
