“Global passenger traffic, along with airline revenue trends and yields, remain on a solid recovery path with little sign of abatement despite global economic and geopolitical factors. Lease demand continues to accelerate, and we are in a good position looking forward with our valuable remaining delivery positions,” said John L. Plueger, Chief Executive Officer and President.

“Our strong balance sheet, young fleet, and attractive order book are once again proving to be the right combination in today’s world for our airline customers. Reflecting this confidence, I am pleased to announce that our Board of Directors has authorized an increase in our quarterly common stock dividend to $0.20 per share, representing the 10th increase and 40th consecutive dividend payment since the founding of ALC,” said Steven F. Udvar-Házy, Executive Chairman of the Board.

The following table summarizes our operating results for the three and nine months ended September 30, 2022 and 2021 (in millions, except per share amounts and percentages):

(1) Adjusted net income before income taxes, adjusted diluted earnings per share before income taxes, adjusted pre-tax margin and adjusted pre-tax return on common equity have been adjusted to exclude the effects of certain non-cash items, one-time or non-recurring items, such as write-offs of our Russian fleet, that are not expected to continue in the future and certain other items. See note 1 under the Consolidated Statements of Operations included in this earnings release for a discussion of the non-GAAP measures and a reconciliation to their most comparable GAAP financial measures.

•Took delivery of 14 aircraft from our new order pipeline, representing $843 million in aircraft investments, ending the period with over $28 billion in total assets.

•As of September 30, 2022, we had 405 aircraft in our owned fleet, with a net book value of $23.9 billion, a weighted average age of 4.5 years and a weighted average lease term remaining of 7.0 years.

•Placed 99% of our contracted orderbook positions on long-term leases for aircraft delivering through the end of 2023 and have placed 58% of our entire orderbook.

•Ended the quarter with $30.9 billion in committed minimum future rental payments consisting of $15.1 billion in contracted minimum rental payments on the aircraft in our existing fleet and $15.8 billion in minimum future rental payments related to aircraft on order.

•Increased our quarterly cash dividend by approximately 8.1%, from $0.185 per share to $0.20 per share of our outstanding Class A common stock. The next quarterly dividend of $0.20 per share will be paid on January 10, 2023 to holders of record of our common stock as of December 16, 2022.

Our total revenues for the three months ended September 30, 2022 increased by 7.0% to $561.3 million as compared to the three months ended September 30, 2021. The increase in total revenues was primarily driven by the continued growth in our fleet, significantly lower lease restructuring losses and higher aircraft sales, trading and other revenue, offset by the loss of rental revenue from the termination of our leasing activities in Russia and cash basis accounting. The increase in aircraft sales, trading and other revenue was primarily due to $11.6 million in gains from the sale of one aircraft and four sales-type lease transactions for the three months ended September 30, 2022. Our net income attributable to common stockholders for the three months ended September 30, 2022 was $100.0 million, or $0.90 per diluted share compared to $100.0 million, or $0.87 per diluted share, for the three months ended September 30, 2021. We recorded adjusted net income before income taxes during the three months ended September 30, 2022 of $146.3 million or $1.32 per adjusted diluted share as compared to $146.5 million or $1.28 per adjusted diluted share for the three months ended September 30, 2021. Net income attributable to common stockholders and adjusted net income before income taxes remained in-line with the prior year period, primarily due to increases in interest, depreciation and selling, general and administrative expenses which partially offset the revenue increases discussed above.

As of September 30, 2022 the net book value of our fleet increased to $23.9 billion, compared to $22.9 billion as of December 31, 2021. As of September 30, 2022, we owned 405 aircraft in our aircraft portfolio, comprised of 297 narrowbody aircraft and 108 widebody aircraft, and we managed 87 aircraft. The weighted average fleet age and weighted average remaining lease term of our fleet as of September 30, 2022 was 4.5 years and 7.0 years, respectively. We have a globally diversified customer base of 115 airlines in 61 countries.

The following table summarizes the key portfolio metrics of our fleet as of September 30, 2022 and December 31, 2021:

			September 30, 2022						December 31, 2021
Net book value of flight equipment subject to operating lease			$	23.9	billion				$	22.9	billion
Weighted-average fleet age(1)			4.5 years						4.4 years
Weighted-average remaining lease term(1)			7.0 years						7.2 years
Owned fleet			405						382
Managed fleet			87						92
Aircraft on order			412						431
Total			904						905
Current fleet contracted rentals			$	15.1	billion				$	14.8	billion
Committed fleet rentals			$	15.8	billion				$	16.1	billion
Total committed rentals			$	30.9	billion				$	30.9	billion
(1) Weighted-average fleet age and remaining lease term calculated based on net book value of our flight equipment subject to operating lease.

The following table details the regional concentration of our flight equipment subject to operating leases:

The following table details the composition of our flight equipment subject to operating leases by aircraft type:

We ended the third quarter of 2022 with total debt financing, net of discounts and issuance costs, of $18.8 billion. As of September 30, 2022, 87.0% of our total debt financing was at a fixed rate and 99.3% was unsecured. As of September 30, 2022, our composite cost of funds was 2.85%. We ended the third quarter with total liquidity of $6.7 billion.

As of the end of the periods presented, our debt portfolio was comprised of the following components (dollars in millions):

In connection with this earnings release, Air Lease Corporation will host a conference call on November 3, 2022 at 4:30 PM Eastern Time to discuss the Company's financial results for the third quarter of 2022.

Investors can participate in the conference call by dialing 1 (888) 660-6652 domestic or 1 (647) 362-9199 international. The passcode for the call is 5952437.

The conference call will also be broadcast live through a link on the Investors page of the Air Lease Corporation website at www.airleasecorp.com. Please visit the website at least 15 minutes prior to the call to register, download and install any necessary audio software. A replay of the broadcast will be available on the Investors page of the Air Lease Corporation website.

For your convenience, the conference call can be replayed in its entirety beginning at 7:30 PM ET on November 3, 2022 until 7:30 PM ET on November 10, 2022. If you wish to listen to the replay of this conference call, please dial 1 (800) 770-2030 domestic or 1 (647) 362-9199 international and enter passcode 5952437.

Air Lease Corporation is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. Air Lease Corporation and its team of dedicated and experienced professionals are principally engaged in purchasing new commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. Air Lease Corporation routinely posts information that may be important to investors in the “Investors” section of its website at www.airleasecorp.com. Investors and potential investors are encouraged to consult Air Lease Corporation’s website regularly for important information. The information contained on, or that may be accessed through, Air Lease Corporation's website is not incorporated by reference into, and is not a part of, this press release.

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements appear in a number of places in this press release and include statements regarding, among other matters, the state of the airline industry, including the impact of Russia’s invasion of Ukraine and the impact of sanctions imposed on Russia, our access to the capital markets, the impact of lease deferrals and other accommodations, aircraft delivery delays and other factors affecting our financial condition or results of operations. Words such as “can,” “could,” “may,” “predicts,” “potential,” “will,” “projects,” “continuing,” “ongoing,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and “should,” and variations of these words and similar expressions, are used in many cases to identify these forward-looking statements. Any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors that may cause our actual results, performance or achievements, or industry results to vary materially from our future results, performance or achievements, or those of our industry, expressed or implied in such forward-looking statements. Such factors include, among others:

•our inability to obtain additional capital on favorable terms, or at all, to acquire aircraft, service our debt obligations and refinance maturing debt obligations;

•increases in our cost of borrowing or changes in interest rates;

•our inability to generate sufficient returns on our aircraft investments through strategic acquisition and profitable leasing;

•the failure of an aircraft or engine manufacturer to meet its delivery obligations to us, including or as a result of technical or other difficulties with aircraft before or after delivery;

•the extent to which the Russian invasion of Ukraine and the impact of sanctions imposed by the United States, European Union, United Kingdom and others affect our business, including our efforts to pursue insurance claims to recover losses related to aircraft detained in Russia, the exclusion of Russia, Ukraine and Belarus from the insurance policies that we separately purchase for our owned fleet, and the ability of our lessees to comply with their obligations to maintain insurance policies that cover their operations;

•the extent to which the COVID-19 pandemic impacts our business;

•obsolescence of, or changes in overall demand for, our aircraft;

•changes in the value of, and lease rates for, our aircraft, including as a result of aircraft oversupply, manufacturer production levels, our lessees’ failure to maintain our aircraft, rising inflation, appreciation of the U.S. Dollar, and other factors outside of our control;

•impaired financial condition and liquidity of our lessees, including due to lessee defaults and reorganizations, bankruptcies or similar proceedings;

•increased competition from other aircraft lessors;

•the failure by our lessees to adequately insure our aircraft or fulfill their contractual indemnity obligations to us;

•increased tariffs and other restrictions on trade;

•changes in the regulatory environment, including changes in tax laws and environmental regulations;

•other events affecting our business or the business of our lessees and aircraft manufacturers or their suppliers that are beyond our or their control, such as the threat or realization of epidemic diseases, natural disasters, terrorist attacks, war or armed hostilities between countries or non-state actors; and

•any additional factors discussed under “Part I — Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2021, “Part II — Item 1A. Risk Factors,” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and other SEC filings, including future SEC filings.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. You are therefore cautioned not to place undue reliance on such statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not intend and undertake no obligation to update any forward-looking information to reflect actual results or events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

###

(1)Adjusted net income before income taxes (defined as net income/(loss) attributable to common stockholders excluding the effects of certain non-cash items, one-time or non-recurring items, such as write-offs of our Russian fleet, that are not expected to continue in the future and certain other items), adjusted pre-tax margin (defined as adjusted net income before income taxes divided by total revenues), adjusted diluted earnings per share before income taxes (defined as adjusted net income before income taxes divided by the weighted average diluted common shares outstanding) and adjusted pre-tax return on common equity (defined as adjusted net income before income taxes divided by average common shareholders' equity) are measures of operating performance that are not defined by GAAP and should not be considered as an alternative to net income/(loss)

attributable to common stockholders, pre-tax margin, earnings/(loss) per share, diluted earnings/(loss) per share and pre-tax return on common equity, or any other performance measures derived in accordance with GAAP. Adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity are presented as supplemental disclosure because management believes they provide useful information on our earnings from ongoing operations.

Management and our board of directors use adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity to assess our consolidated financial and operating performance. Management believes these measures are helpful in evaluating the operating performance of our ongoing operations and identifying trends in our performance, because they remove the effects of certain non-cash items, one-time or non-recurring items that are not expected to continue in the future and certain other items from our operating results. Adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity, however, should not be considered in isolation or as a substitute for analysis of our operating results or cash flows as reported under GAAP. Adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity do not reflect our cash expenditures or changes in our cash requirements for our working capital needs. In addition, our calculation of adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity may differ from the adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity or analogous calculations of other companies in our industry, limiting their usefulness as a comparative measure.

The following table shows the reconciliation of the numerator for adjusted pre-tax margin (in thousands, except percentages):

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
			(unaudited)
Reconciliation of the numerator for adjusted pre-tax margin (net income/(loss) attributable to common stockholders to adjusted net income before income taxes):
Net income/(loss) attributable to common stockholders			$	99,956					$	100,006					$	(273,609)					$	265,841
Amortization of debt discounts and issuance costs			13,162						12,571						39,772						37,109
Write-off of Russian fleet			—						—						802,352						—
Stock-based compensation expense			5,764						6,692						9,799						18,800
Income tax expense/(benefit)			27,458						27,208						(76,606)						67,785
Adjusted net income before income taxes			$	146,340					$	146,477					$	501,708					$	389,535
Denominator for adjusted pre-tax margin:
Total revenues			$	561,334					$	524,509					$	1,715,692					$	1,491,213
Adjusted pre-tax margin(a)			26.1		%				27.9		%				29.2		%				26.1		%
(a) Adjusted pre-tax margin is adjusted net income before income taxes divided by total revenues

The following table shows the reconciliation of the numerator for adjusted diluted earnings per share before income taxes (in thousands, except share and per share amounts):

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
			(unaudited)
Reconciliation of the numerator for adjusted diluted earnings per share (net income/(loss) attributable to common stockholders to adjusted net income before income taxes):
Net income/(loss) attributable to common stockholders			$	99,956					$	100,006					$	(273,609)					$	265,841
Amortization of debt discounts and issuance costs			13,162						12,571						39,772						37,109
Write-off of Russian fleet			—						—						802,352						—
Stock-based compensation expense			5,764						6,692						9,799						18,800
Income tax expense/(benefit)			27,458						27,208						(76,606)						67,785
Adjusted net income before income taxes			$	146,340					$	146,477					$	501,708					$	389,535
Denominator for adjusted diluted earnings per share:
Weighted-average diluted common shares outstanding			111,090,133						114,381,621						111,874,002						114,415,169
Potentially dilutive securities, whose effect would have been anti-dilutive			—						—						329,947						—
Adjusted weighted-average diluted common shares outstanding			111,090,133						114,381,621						112,203,949						114,415,169
Adjusted diluted earnings per share before income taxes(b)			$	1.32					$	1.28					$	4.47					$	3.40
(b) Adjusted diluted earnings per share before income taxes is adjusted net income before income taxes divided by adjusted weighted-average diluted common shares outstanding

The following table shows the reconciliation of pre-tax return on common equity to adjusted pre-tax return on common equity (in thousands, except percentages):

			Trailing Twelve Months Ended September 30,
			2022						2021
			(unaudited)
Reconciliation of the numerator for adjusted pre-tax return on common equity (net (loss)/income attributable to common stockholders to adjusted net income before income taxes):
Net (loss)/income attributable to common stockholders			$	(131,292)					$	373,090
Amortization of debt discounts and issuance costs			53,284						48,474
Write-off of Russian fleet			802,352						—
Stock-based compensation expense			17,515						21,472
Income tax (benefit)/expense			(40,008)						94,513
Adjusted net income before income taxes			$	701,851					$	537,549
Reconciliation of denominator for pre-tax return on common equity to adjusted pre-tax return on common equity:
Common shareholders' equity as of beginning of the period			$	6,033,783					$	5,727,323
Common shareholders' equity as of end of the period			$	5,678,434					$	6,033,783
Average common shareholders' equity			$	5,856,109					$	5,880,553
Adjusted pre-tax return on common equity(c)			12.0		%				9.1		%
(c) Adjusted pre-tax return on common equity is adjusted net income before income taxes divided by average common shareholders’ equity