Aircraft lessor Air Lease Corp. reported a rise in second-quarter profit and revenue on Monday, due to a $344 milli
on insurance claim settlement plus robust aircraft rental demand.
Aircraft reducers hav
e benefited from strong lease rates as airlines rush to secure jets amid persistent supply-chain challenges and limit
ed aircraft availability. However, production delays at Boeing and Airbus
s have extended delivery schedules, limiting reducers' ability to fully capitalize on the rising demand.
Boeing and Airbus plan to increase output, but “even with those increases, which have not all been achieved by any certainty, there is still a shortfall in supp
ly for the next three to five years,” Air Lease CEO John Plueger said during a conference call with investment analysts on Monday.
Read more: Air Lease Corp. Gets $329 Million Insurance Payout for Jets Stranded in Russia
The company confirmed that it canceled its 2021 order for seven Airbus A350 freighters last month. Delivery
of the planes was already one year late, Plueger said during the call.
Demand for air freighters has fluctuated in recent months, he said, adding that it appears to stem from the United
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States’ aggressive use of tariffs in trade negotiations.
TheU.S. and European Union’s provisional agreement to exempt commercial aerospace goods from tariffs should be a “clear precedent” for the globe, he said.
Per the company's lease agreements, its customers are responsible for any applicable tariff payments, he noted.
Air Lease reported a net income of $374.1 million, or $3.33 per share, for the quarter ended June 30, compared with $
90.4 million, or 81 cents per share, in the same period a year earlier.
Much of that increase was from a $344 million insurance claim settlement for aircraft which were blocked from leaving Russia after the country’s invasion
on of Ukraine in February 2022. So far this year, Air Lease has received $676 million in settlement payments.
The company expects to recognize an additional net benefit of about $60 million in the third quarter of 2025 from the settlement of additional insurance claims.
Its revenue rose 9.7% to $731.7 million during the quarter.
(Reporting by Shivansh Tiwary and Anshuman Tripathy in Bengaluru and Dan Catchpole in Seattle; editing by Mohammed Safi Shamsi and Stephen Coates)
For Q3, total net premiums were up 1% to about $11.5 billion. Travelers’ business insurance segment gre
w net premiums 3% to about $5.7 billion, led by domestic growth. Underwriting income was $392 million for Q3 2025 compared with $219 a year ago.
Within the segment, middle-market and Select Accounts small bus
iness grew 7% and 4%, respectively. The Q3 combined ratio for business insurance was 92.9 compared with 95.8 for Q3 2024.