(Reuters) -Aircraft lessor Air Lease said on Thursday it expects more demand opportunities from potential delivery delays at Airbus due to Pratt & Whitney engine issues, which could further boost its lease rates.
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 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.
It reported a profit of $1.10 per share for the second quarter, beating analysts’ average estimate of $1.07, according to Refinitv data.
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.
Revenue rose 20.7% to $672.9 million in the quarter and beat expectations of $660.3 million.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Arun Koyyur)
