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Air Lease profits, increased revenue from insurance payouts and aircraft demand

Air Lease Corp, a lessor of aircraft, reported on Monday a higher second-quarter profit as well as revenue due to an insurance settlement of $344 million and a robust demand for aircraft rentals.

As airlines scramble to acquire jets due to persistent supply-chain issues and limited aircraft availability, aircraft lessors are benefiting from high lease rates. Production delays at Boeing and Airbus, however, have caused delivery schedules to be extended, which has limited lessors' abilities to capitalize on the increasing demand.

Boeing and Airbus intend to increase production, but "even after these increases, which are not yet all achieved with certainty, there will still be a shortage in supply over the next three to four years," Air Lease CEO John Plueger stated during a Monday conference call with analysts.

Last month, the company confirmed it had canceled its order for seven Airbus A350 Freighters in 2021. Plueger stated that the delivery of the planes had already been delayed by one year.

He said that the demand for air freighters fluctuated over recent months. This is due to the aggressive tariffs used by the United States in trade negotiations.

The U.S.-EU provisional agreement

Commercial aerospace products are exempted from tax

He said that the removal of tariffs would set a "clear example" for all countries.

According to the lease agreements of the company, customers are responsible for all applicable tariff payments. Air Lease reported net income of $374.1m, or $3.33 a share, for the three months ended June 30. This compares to $90.4m, or 81c per share in the same quarter a year ago.

This increase is largely due to a $344m insurance settlement for aircraft that were prevented from leaving Russia following the invasion of Ukraine by Russia in February 2022. Air Lease has so far received $676 in settlement payments this year. In the third quarter 2025, the company anticipates a net gain of approximately $60 million from additional insurance claims. The company's revenue increased by 9.7%, to $731.7 millions during the quarter. Reporting by Shivansh Tiwary, Anshuman Tripathy and Dan Catchpole from Bengaluru; editing by Mohammed Safi Shamsi & Stephen Coates

(source: Reuters)