10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from         to       

Commission file number 001-35121

AIR LEASE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	27-1840403
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2000 Avenue of the Stars,	Suite 1000N	90067
Los Angeles,	California
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (310) 553-0555

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	AL	New York Stock Exchange
6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A	AL PRA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

1

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

At August 3, 2022, there were 110,892,097 shares of Air Lease Corporation’s Class A common stock outstanding.

2

Air Lease Corporation and Subsidiaries

Form 10-Q

For the Quarterly Period Ended June 30, 2022

TABLE OF CONTENTS

		Page
Note About Forward-Looking Statements		4
	PART I—FINANCIAL INFORMATION
Item 1	Financial Statements
	Consolidated Balance Sheets—June 30, 2022 and December 31, 2021 (unaudited)	5
	Consolidated Statements of Operations and Other Comprehensive Income/(Loss)—Three and Six Months Ended June 30, 2022 and 2021 (unaudited)	6
	Consolidated Statement of Shareholders’ Equity—Three and Six Months Ended June 30, 2022 and 2021 (unaudited)	7
	Consolidated Statements of Cash Flows—Six Months Ended June 30, 2022 and 2021 (unaudited)	9
	Notes to Consolidated Financial Statements (unaudited)	10
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4	Controls and Procedures	40
	PART II—OTHER INFORMATION
Item 1	Legal Proceedings	40
Item 1A	Risk Factors	40
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3	Defaults Upon Senior Securities	41
Item 4	Mine Safety Disclosures	41
Item 5	Other Information	41
Item 6	Exhibits	41
	Signatures	43

3

NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q and other publicly available documents may contain or incorporate 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 Form 10-Q 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 that remain 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.

4

PART I—FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

Air Lease Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value amounts)

	June 30, 2022		December 31, 2021
	(unaudited)
Assets
Cash and cash equivalents	$	1,012,779	$	1,086,500
Restricted cash	21,069		21,792
Flight equipment subject to operating leases	27,969,301		27,101,808
Less accumulated depreciation	(4,501,559)		(4,202,804)
	23,467,742		22,899,004
Deposits on flight equipment purchases	1,618,687		1,508,892
Other assets	1,526,180		1,452,534
Total assets	$	27,646,457	$	26,968,722
Liabilities and Shareholders’ Equity
Accrued interest and other payables	$	628,526	$	611,757
Debt financing, net of discounts and issuance costs	18,336,075		17,022,480
Security deposits and maintenance reserves on flight equipment leases	1,186,442		1,173,831
Rentals received in advance	147,127		138,816
Deferred tax liability	908,653		1,013,270
Total liabilities	$	21,206,823	$	19,960,154
Shareholders’ Equity
Preferred Stock, $0.01 par value; 50,000,000 shares authorized; 10,600,000 (aggregate liquidation preference of $850,000) shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	$	106	$	106
Class A common stock, $0.01 par value; 500,000,000 shares authorized; 110,892,097 and 113,987,154 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	1,109		1,140
Class B Non-Voting common stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding	—		—
Paid-in capital	3,244,282		3,399,245
Retained earnings	3,194,672		3,609,885
Accumulated other comprehensive loss	(535)		(1,808)
Total shareholders’ equity	$	6,439,634	$	7,008,568
Total liabilities and shareholders’ equity	$	27,646,457	$	26,968,722

(See Notes to Consolidated Financial Statements)

5

Air Lease Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME/(LOSS)

(In thousands, except share and per share amounts)

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(unaudited)
Revenues
Rental of flight equipment	$	545,271	$	452,044	$	1,111,825	$	920,139
Aircraft sales, trading and other	12,425		39,833		42,533		46,565
Total revenues	557,696		491,877		1,154,358		966,704
Expenses
Interest	118,997		113,598		236,274		231,584
Amortization of debt discounts and issuance costs	13,413		12,513		26,610		24,538
Interest expense	132,410		126,111		262,884		256,122
Depreciation of flight equipment	235,284		217,817		470,591		426,782
Write-off of Russian fleet	—		—		802,352		—
Selling, general and administrative	38,512		26,687		71,277		53,601
Stock-based compensation expense	6,558		6,700		4,035		12,108
Total expenses	412,764		377,315		1,611,139		748,613
Income/(loss) before taxes	144,932		114,562		(456,781)		218,091
Income tax (expense)/benefit	(28,655)		(21,140)		104,065		(40,577)
Net income/(loss)	$	116,277	$	93,422	$	(352,716)	$	177,514
Preferred stock dividends	(10,425)		(7,835)		(20,850)		(11,679)
Net income/(loss) attributable to common stockholders	$	105,852	$	85,587	$	(373,566)	$	165,835
Other comprehensive (loss)/income:
Foreign currency translation adjustment	$	9,349	$	(4,265)	$	6,330	$	(8,072)
Change in fair value of hedged transactions	(9,941)		3,976		(4,712)		6,197
Total tax (expense)/benefit on other comprehensive income/loss	127		62		(346)		401
Other comprehensive (loss)/income, net of tax	(465)		(227)		1,272		(1,474)
Total comprehensive income/(loss) attributable for common stockholders	$	105,387	$	85,360	$	(372,294)	$	164,361
Earnings/(loss) per share of common stock:
Basic	$	0.95	$	0.75	$	(3.32)	$	1.45
Diluted	$	0.95	$	0.75	$	(3.32)	$	1.45
Weighted-average shares outstanding
Basic	110,868,040		114,133,135		112,373,092		114,046,252
Diluted	111,043,836		114,377,965		112,373,092		114,373,576
Dividends declared	$	0.185	$	0.16	$	0.37	$	0.32

(See Notes to Consolidated Financial Statements)

6

Air Lease Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share and per share amounts)

	Preferred Stock			Class A Common Stock			Class B Non‑Voting Common Stock							Accumulated Other Comprehensive Income/(Loss)
(unaudited)	Shares	Amount		Shares	Amount		Shares	Amount		Paid‑in Capital		Retained Earnings				Total
Balance at December 31, 2021	10,600,000	$	106	113,987,154	$	1,140	—	$	—	$	3,399,245	$	3,609,885	$	(1,808)	$	7,008,568
Issuance of common stock upon vesting of restricted stock units	—	—		477,656	5		—	—		(3)		—		—		2
Common stock repurchased	—	—		(2,959,458)	(30)		—	—		(129,519)		—		—		(129,549)
Stock-based compensation expense	—	—		—	—		—	—		(2,523)		—		—		(2,523)
Cash dividends (declared $0.185 per share of Class A common stock)	—	—		—	—		—	—		—		(21,136)		—		(21,136)
Cash dividends (declared on preferred stock)	—	—		—	—		—	—		—		(10,425)		—		(10,425)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax	—	—		—	—		—	—		—		—		1,738		1,738
Tax withholdings on stock-based compensation	—	—		(188,093)	(2)		—	—		(8,095)		—		—		(8,097)
Net loss	—	—		—	—		—	—		—		(468,993)		—		(468,993)
Balance at March 31, 2022	10,600,000	$	106	111,317,259	$	1,113	—	$	—	$	3,259,105	$	3,109,331	$	(70)	$	6,369,585
Issuance of common stock upon vesting of restricted stock units	—	—		59,603	—		—	—		—		—		—		—
Common stock repurchased	—	—		(461,416)	(4)		—	—		(20,450)		—		—		(20,454)
Stock-based compensation expense	—	—		—	—		—	—		6,558		—		—		6,558
Cash dividends (declared $0.185 per share of Class A common stock)	—	—		—	—		—	—		—		(20,511)		—		(20,511)
Cash dividends (declared on preferred stock)	—	—		—	—		—	—		—		(10,425)		—		(10,425)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax	—	—		—	—		—	—		—		—		(465)		(465)
Tax withholdings on stock-based compensation	—	—		(23,349)	—		—	—		(931)		—		—		(931)
Net income	—	—		—	—		—	—		—		116,277		—		116,277
Balance at June 30, 2022	10,600,000	$	106	110,892,097	$	1,109	—	$	—	$	3,244,282	$	3,194,672	$	(535)	$	6,439,634

7

Air Lease Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share and per share amounts)

	Preferred Stock			Class A Common Stock			Class B Non‑Voting Common Stock							Accumulated Other Comprehensive Income/(Loss)
(unaudited)	Shares	Amount		Shares	Amount		Shares	Amount		Paid‑in Capital		Retained Earnings				Total
Balance at December 31, 2020	10,000,000	$	100	113,852,896	$	1,139	—	$	—	$	2,793,178	$	3,277,599	$	325	$	6,072,341
Issuance of preferred stock	300,000	3		—	—		—	—		295,446		—		—		295,449
Issuance of common stock upon exercise of options and vesting of restricted stock units	—	—		425,232	4		—	—		1,437		—		—		1,441
Stock-based compensation expense	—	—		—	—		—	—		5,408		—		—		5,408
Cash dividends (declared $0.16 per share of Class A common stock)	—	—		—	—		—	—		—		(18,259)		—		(18,259)
Cash dividends (declared on preferred stock)	—	—		—	—		—	—		—		(3,844)		—		(3,844)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax	—	—		—	—		—	—		—		—		(1,247)		(1,247)
Tax withholdings on stock-based compensation	—	—		(157,266)	(2)		—	—		(7,167)		—		—		(7,169)
Net income	—	—		—	—		—	—		—		84,092		—		84,092
Balance at March 31, 2021	10,300,000	$	103	114,120,862	$	1,141	—	$	—	$	3,088,302	$	3,339,588	$	(922)	$	6,428,212
Issuance of preferred stock	—	—		—	—		—	—		(19)		—		—		(19)
Issuance of common stock upon exercise of options and vesting of restricted stock units	—	—		25,956	—		—	—		—		—		—		—
Stock-based compensation expense	—	—		—	—		—	—		6,700		—		—		6,700
Cash dividends (declared $0.16 per share of Class A common stock)	—	—		—	—		—	—		—		(18,263)		—		(18,263)
Cash dividends (declared on preferred stock)	—	—		—	—		—	—		—		(7,835)		—		(7,835)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax	—	—		—	—		—	—		—		—		(227)		(227)
Tax withholdings on stock-based compensation	—	—		(5,715)	—		—	—		(275)		—		—		(275)
Net income	—	—		—	—		—	—		—		93,422		—		93,422
Balance at June 30, 2021	10,300,000	$	103	114,141,103	$	1,141	—	$	—	$	3,094,708	$	3,406,912	$	(1,149)	$	6,501,715

(See Notes to Consolidated Financial Statements)

8

Air Lease Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Six Months Ended June 30,
	2022		2021
	(unaudited)
Operating Activities
Net (loss)/income	$	(352,716)	$	177,514
Adjustments to reconcile net (loss)/income to net cash provided by operating activities:
Depreciation of flight equipment	470,591		426,782
Write-off of Russian fleet	802,352		—
Stock-based compensation expense	4,035		12,108
Deferred taxes	(104,963)		38,985
Amortization of discounts and debt issuance costs	26,610		24,538
Amortization of prepaid lease costs	23,355		22,267
Gain on aircraft sales, trading and other activity	(71,753)		(1,245)
Changes in operating assets and liabilities:
Other assets	(147,685)		(96,234)
Accrued interest and other payables	26,590		4,751
Rentals received in advance	12,423		(6,801)
Net cash provided by operating activities	688,839		602,665
Investing Activities
Acquisition of flight equipment under operating lease	(1,569,310)		(1,098,174)
Payments for deposits on flight equipment purchases	(345,643)		(202,938)
Proceeds from aircraft sales, trading and other activity	1,166		2,042
Acquisition of aircraft furnishings, equipment and other assets	(106,655)		(102,303)
Net cash used in investing activities	(2,020,442)		(1,401,373)
Financing Activities
Issuance of common stock upon exercise of options	—		1,439
Cash dividends paid on Class A common stock	(42,223)		(36,475)
Common shares repurchased	(150,000)		—
Net proceeds from preferred stock issuance	—		295,428
Cash dividends paid on preferred stock	(20,850)		(11,679)
Tax withholdings on stock-based compensation	(9,027)		(7,442)
Net change in unsecured revolving facilities	520,000		—
Proceeds from debt financings	1,497,615		2,574,089
Payments in reduction of debt financings	(718,687)		(2,576,841)
Debt issuance costs	(5,613)		(7,937)
Security deposits and maintenance reserve receipts	198,763		67,289
Security deposits and maintenance reserve disbursements	(12,819)		(24,170)
Net cash provided by financing activities	1,257,159		273,701
Net decrease in cash	(74,444)		(525,007)
Cash, cash equivalents and restricted cash at beginning of period	1,108,292		1,757,767
Cash, cash equivalents and restricted cash at end of period	$	1,033,848	$	1,232,760
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest, including capitalized interest of $19,127 and $26,116 at June 30, 2022 and 2021, respectively	$	254,349	$	262,949
Cash paid for income taxes	$	3,557	$	2,491
Supplemental Disclosure of Noncash Activities
Buyer furnished equipment, capitalized interest and deposits on flight equipment purchases applied to acquisition of flight equipment	$	343,794	$	449,486
Cash dividends declared, not yet paid	$	20,511	$	18,263

(See Notes to Consolidated Financial Statements)

9

Air Lease Corporation and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1.    Company Background and Overview

Air Lease Corporation (the “Company”, “ALC”, “we”, “our” or “us”) is a leading aircraft leasing company that was founded by aircraft leasing industry pioneer, Steven F. Udvar-Házy. The Company is principally engaged in purchasing the most modern, fuel-efficient, new technology commercial jet aircraft directly from aircraft manufacturers, such as The Boeing Company (“Boeing”) and Airbus S.A.S. (“Airbus”). The Company leases these aircraft to airlines throughout the world with the intention to generate attractive returns on equity. As of June 30, 2022, the Company owned 392 aircraft, managed 89 aircraft and had 430 aircraft on order with aircraft manufacturers. In addition to its leasing activities, the Company sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines and other investors. The Company also provides fleet management services to investors and owners of aircraft portfolios for a management fee.

Note 2.    Basis of Preparation and Critical Accounting Policies

The Company consolidates financial statements of all entities in which the Company has a controlling financial interest, including the accounts of any Variable Interest Entity in which the Company has a controlling financial interest and for which it is the primary beneficiary. All material intercompany balances are eliminated in consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

The accompanying unaudited Consolidated Financial Statements include all adjustments, consisting only of normal, recurring adjustments, which are in the opinion of management necessary to present fairly the Company’s financial position, results of operations and cash flows at June 30, 2022, and for all periods presented. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the operating results expected for the year ending December 31, 2022. These financial statements and related notes should be read in conjunction with the Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Reclassifications

Certain reclassifications have been made in the prior year’s consolidated financial statements to conform to the classifications in 2022.

Note 3.    Debt Financing

The Company’s consolidated debt as of June 30, 2022 and December 31, 2021 is summarized below:

	June 30, 2022		December 31, 2021
	(in thousands)
Unsecured
Senior notes	$	17,685,728	$	16,892,058
Term financings	190,325		167,000
Revolving credit facility	520,000		—
Total unsecured debt financing	18,396,053		17,059,058
Secured
Term financings	120,226		126,660
Export credit financing	14,973		18,301
Total secured debt financing	135,199		144,961
Total debt financing	18,531,252		17,204,019
Less: Debt discounts and issuance costs	(195,177)		(181,539)
Debt financing, net of discounts and issuance costs	$	18,336,075	$	17,022,480

10

Air Lease Corporation and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Senior unsecured notes (including Medium-Term Note Program)

As of June 30, 2022, the Company had $17.7 billion in senior unsecured notes outstanding. As of December 31, 2021, the Company had $16.9 billion in senior unsecured notes outstanding.

During the six months ended June 30, 2022, the Company issued $1.5 billion in aggregate principal amount of senior unsecured notes comprised of (i) $750.0 million in aggregate principal amount of 2.20% Medium-Term Notes due 2027, and (ii) $750.0 million in aggregate principal amount of 2.875% Medium-Term Notes due 2032.

Unsecured revolving credit facility

As of June 30, 2022, the Company had $520.0 million outstanding under its unsecured revolving credit facility (the “Revolving Credit Facility”). As of December 31, 2021, the Company did not have any amounts outstanding under its Revolving Credit Facility. Borrowings under the Revolving Credit Facility are used to finance the Company’s working capital needs in the ordinary course of business and for other general corporate purposes.

In April 2022, the Company amended and extended its Revolving Credit Facility through an amendment that, among other things, extended the final maturity date from May 5, 2025 to May 5, 2026, increased the total revolving commitments to approximately $7.0 billion as of May 5, 2022 and replaced LIBOR with Term SOFR as the benchmark interest rate and made certain conforming changes related thereto. As of June 30, 2022, borrowings under the Revolving Credit Facility accrued interest at Adjusted Term SOFR (as defined in the Revolving Credit Facility) plus a margin of 1.05% per year. The Company is required to pay a facility fee of 0.20% per year in respect of total commitments under the Revolving Credit Facility. Interest rate and facility fees are subject to increases or decreases based on declines or improvements in the credit ratings for the Company’s debt.

In June 2022, the Company increased the aggregate facility capacity by an additional $122.5 million and also extended the maturity of $125.0 million in commitments to May 5, 2026. As of August 4, 2022, the Company had total revolving commitments of approximately $7.1 billion. Lenders held revolving commitments totaling approximately $6.7 billion that mature on May 5, 2026, commitments totaling $32.5 million that mature on May 5, 2025 and commitments totaling $375.0 million that mature on May 5, 2023.

Other debt financings

From time to time, the Company enters into other debt financings such as unsecured term financings and secured term financings, including export credit. As of June 30, 2022, the outstanding balance on other debt financings was $325.5 million and the Company had pledged three aircraft as collateral with a net book value of $217.1 million. As of December 31, 2021, the outstanding balance on other debt financings was $312.0 million and the Company had pledged three aircraft as collateral with a net book value of $222.2 million.

Maturities

Maturities of debt outstanding as of June 30, 2022 are as follows:

	(in thousands)
Years ending December 31,
2022	$	1,291,611
2023	2,566,329
2024	2,885,280
2025	2,404,761
2026	3,963,094
Thereafter	5,420,177
Total	$	18,531,252

11

Air Lease Corporation and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 4.     Flight equipment subject to operating lease

The following table summarizes the activities for the Company’s flight equipment subject to operating lease for the six months ended June 30, 2022:

	(in thousands)
Net book value as of December 31, 2021	$	22,899,004
Additions	1,936,337
Depreciation	(470,591)
Transfers to net investments in sales-type leases	(105,991)
Write-off of Russian fleet	(791,017)
Net book value as of June 30, 2022	$	23,467,742
Accumulated depreciation as of June 30, 2022	$	(4,501,559)

Write-off of Russian fleet

In response to the sanctions against certain industry sectors and parties in Russia, in March 2022, the Company terminated all of its leasing activities in Russia, including 24 aircraft in its owned fleet. As of August 4, 2022, 21 aircraft previously included in the Company’s owned fleet remain in Russia. The operators of these aircraft have continued to fly most of the aircraft notwithstanding the termination of leasing activities and the Company’s repeated demands for the return of its assets. While the Company maintains title to the aircraft, the Company has determined that it is unlikely it will regain possession of the aircraft that have not been returned and that remain in Russia. As such, during the three months ended March 31, 2022, the Company recognized a loss from asset write-offs of its interests in owned aircraft that remain in Russia, totaling approximately $791.0 million. The Company did not have any losses from asset write-offs for the three months ended June 30, 2022. The 21 aircraft that remain in Russia were removed from the Company’s owned fleet count as of March 31, 2022. In June 2022, the Company submitted insurance claims to its insurers to recover its losses relating to these aircraft and is vigorously pursuing all available insurance claims. Collection, timing and amounts of any insurance recoveries is uncertain at this time.

Note 5.    Commitments and Contingencies

Aircraft Acquisition

As of June 30, 2022, the Company had commitments to purchase 430 aircraft from Boeing and Airbus for delivery through 2028, with an estimated aggregate commitment of $27.6 billion.

The table is subject to change based on Airbus and Boeing delivery delays. As noted below, the Company expects delivery delays for some aircraft in its orderbook. The Company remains in discussions with Boeing and Airbus to determine the extent and duration of delivery delays; however, the Company is not yet able to determine the full impact of these delays.

12

Air Lease Corporation and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Estimated Delivery Years
Aircraft Type	2022	2023	2024	2025	2026	Thereafter	Total
Airbus A220-100/300	4	16	24	20	12	—	76
Airbus A320/321neo(1)	17	23	23	24	35	64	186
Airbus A330-900neo	6	6	4	—	—	—	16
Airbus A350-900/1000	1	3	3	—	—	—	7
Airbus A350F	—	—	—	—	2	5	7
Boeing 737-8/9 MAX	14	31	34	19	16	—	114
Boeing 787-9/10	3	7	8	6	—	—	24
Total(2)	45	86	96	69	65	69	430
(1) The Company’s Airbus A320/321neo aircraft orders include 26 long-range variants and 49 extra long-range variants.
(2) The table above reflects Airbus and Boeing aircraft delivery delays based on contractual documentation.

Pursuant to the Company’s purchase agreements with Boeing and Airbus, the Company agrees to contractual delivery dates for each aircraft ordered. These dates can change for a variety of reasons, however for the last several years, manufacturing delays have significantly impacted the planned purchases of the Company’s aircraft on order with Boeing and Airbus. The Company is currently experiencing delivery delays with both Boeing and Airbus aircraft. However, the most significant delivery delays pertain to the Company’s aircraft orders for Boeing 787 aircraft.

During 2020, Boeing began to experience manufacturing issues on its 787 aircraft, which resulted in significant aircraft delivery delays. Boeing halted 787 deliveries in May 2021 and has not indicated when they will resume. The Company has not received any 787s since the halting of the deliveries by Boeing. It is the Company’s understanding that, in July 2022, the FAA approved Boeing’s plan to inspect and repair 787 aircraft, which will allow deliveries to resume. However, the pace and the timing of deliveries of the aircraft for the remainder of this year and potentially beyond still remains uncertain.

The aircraft purchase commitments discussed above could also be impacted by cancellations. The Company’s purchase agreements with Boeing and Airbus generally provide each of the Company and the manufacturers with cancellation rights for delivery delays starting at one year after the original contractual delivery date, regardless of cause. In addition, the Company’s lease agreements generally provide each of the Company and the lessee with cancellation rights related to certain aircraft delivery delays that typically parallel the cancellation rights in the Company’s purchase agreements.

Commitments for the acquisition of these aircraft, calculated at an estimated aggregate purchase price (including adjustments for anticipated inflation) of approximately $27.6 billion as of June 30, 2022, are as follows:

Years ending December 31,
2022	$	3,082,573
2023	6,057,223
2024	6,223,538
2025	4,186,938
2026	3,641,767
Thereafter	4,433,109
Total	$	27,625,148

The Company has made non-refundable deposits on flight equipment purchases of $1.6 billion and $1.5 billion as of June 30, 2022 and December 31, 2021, respectively. If the Company is unable to satisfy its purchase commitments, the Company may be forced to forfeit its deposits and may also be exposed to breach of contract claims by its lessees as well as the manufacturers.

13

Air Lease Corporation and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 6.    Rental Income

As of June 30, 2022, minimum future rentals on non-cancellable operating leases of flight equipment in the Company’s owned fleet, which have been delivered as of June 30, 2022 are as follows:

Years ending December 31,
2022 (excluding the six months ended June 30, 2022)	$	1,089,192
2023	2,093,379
2024	1,970,231
2025	1,823,512
2026	1,630,714
Thereafter	6,359,325
Total	$	14,966,353

Note 7. Earnings/(Loss) Per Share

Basic earnings/(loss) per share is computed by dividing net income/(loss) by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company’s two classes of common stock, Class A and Class B non-voting, have equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock. As of June 30, 2022, the Company did not have any Class B non-voting common stock outstanding.    

Diluted earnings per share takes into account the potential conversion of stock options, restricted stock units, and warrants using the treasury stock method and convertible notes using the if-converted method. Since the Company was in a loss position for the six months ended June 30, 2022, diluted net loss per share is the same as basic net loss per share for the period as the inclusion of all potential common shares outstanding would have been anti-dilutive. For the six months ended June 30, 2022, the Company excluded 301,279 potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. For the three months ended June 30, 2022, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. For the three and six months ended June 30, 2021, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. The Company excluded 978,036 and 1,085,311 shares related to restricted stock units for which the performance metric had yet to be achieved as of June 30, 2022 and 2021, respectively.

14

Air Lease Corporation and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table sets forth the reconciliation of basic and diluted earnings/(loss) per share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in thousands, except share and per share)
Basic earnings/(loss) per share:
Numerator
Net income/(loss)	$	116,277	$	93,422	$	(352,716)	$	177,514
Preferred stock dividends	(10,425)		(7,835)		(20,850)		(11,679)
Net income/(loss) attributable to common stockholders	$	105,852	$	85,587	$	(373,566)	$	165,835
Denominator
Weighted-average shares outstanding	110,868,040		114,133,135		112,373,092		114,046,252
Basic earnings/(loss) per share	$	0.95	$	0.75	$	(3.32)	$	1.45
Diluted earnings/(loss) per share:
Numerator
Net income/(loss)	$	116,277	$	93,422	$	(352,716)	$	177,514
Preferred stock dividends	(10,425)		(7,835)		(20,850)		(11,679)
Net income/(loss) attributable to common stockholders	$	105,852	$	85,587	$	(373,566)	$	165,835
Denominator
Number of shares used in basic computation	110,868,040		114,133,135		112,373,092		114,046,252
Weighted-average effect of dilutive securities	175,796		244,830		—		327,324
Number of shares used in per share computation	111,043,836		114,377,965		112,373,092		114,373,576
Diluted earnings/(loss) per share	$	0.95	$	0.75	$	(3.32)	$	1.45

Note 8.    Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis

The Company has a cross-currency swap related to its Canadian dollar Medium-Term Notes which were issued in December 2019. The fair value of the swap as a foreign currency exchange derivative is categorized as a Level 2 measurement in the fair value hierarchy and is measured on a recurring basis. As of June 30, 2022 and December 31, 2021, the estimated fair value of the foreign currency exchange derivative asset was $9.4 million and $14.1 million, respectively.

Financial Instruments Not Measured at Fair Values

The fair value of debt financing is estimated based on the quoted market prices for the same or similar issues, or on the current rates offered to the Company for debt of the same remaining maturities, which would be categorized as a Level 2 measurement in the fair value hierarchy. The estimated fair value of debt financing as of June 30, 2022 was $17.2 billion compared to a book value of $18.5 billion. The estimated fair value of debt financing as of December 31, 2021 was $17.6 billion compared to a book value of $17.2 billion.

The following financial instruments are not measured at fair value on the Company’s Consolidated Balance Sheets at June 30, 2022, but require disclosure of their fair values: cash and cash equivalents and restricted cash. The estimated fair value of such instruments at June 30, 2022 and December 31, 2021 approximates their carrying value as reported on the Consolidated Balance Sheets. The fair value of all these instruments would be categorized as Level 1 in the fair value hierarchy.

15

Air Lease Corporation and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 9.    Shareholders’ Equity

The Company was authorized to issue 500,000,000 shares of Class A common stock, $0.01 par value, at June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021, the Company had 110,892,097 and 113,987,154 Class A common shares issued and outstanding, respectively. The Company was authorized to issue 10,000,000 shares of Class B common stock, $0.01 par value at June 30, 2022 and December 31, 2021. The Company did not have any shares of Class B non-voting common stock, $0.01 par value, issued or outstanding as of June 30, 2022 or December 31, 2021.

The Company was authorized to issue 50,000,000 shares of preferred stock, $0.01 par value, at June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021, the Company had 10.0 million shares of 6.15% Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $250.0 million ($25.00 per share), 300,000 shares of 4.65% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $300.0 million ($1,000 per share) and 300,000 shares of 4.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C (the “Series C Preferred Stock”), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $300.0 million ($1,000 per share).

The following table summarizes the Company’s preferred stock issued and outstanding as of June 30, 2022 (in thousands, except for share amounts and percentages):

	Shares Issued and Outstanding as of June 30, 2022	Carrying Value as of June 30, 2022		Issue Date	Dividend Rate in Effect at June 30, 2022		Next dividend rate reset date	Dividend rate after reset date
Series A	10,000,000	$	250,000	March 5, 2019	6.150	%	March 15, 2024	3M LIBOR plus 3.65%
Series B	300,000	300,000		March 2, 2021	4.650	%	June 15, 2026	5 Yr U.S. Treasury plus 4.076%
Series C	300,000	300,000		October 13, 2021	4.125	%	December 15, 2026	5 Yr U.S. Treasury plus 3.149%
Total Preferred Stock	10,600,000	$	850,000

During the six months ended June 30, 2022, the Company repurchased 3,420,874 shares of its Class A common stock under its previously announced stock repurchase program at an average purchase price of $43.85 per share, of which 461,416 shares of its Class A common stock were repurchased during the three months ended June 30, 2022 at an average purchase price of $44.33 per share. Such repurchases completed the repurchase of the entire $150.0 million of outstanding shares authorized under the Company’s stock repurchase program. The Company completed the share repurchase program in April 2022.

Note 10.     Stock-based Compensation

On May 7, 2014, the stockholders of the Company approved the Air Lease Corporation 2014 Equity Incentive Plan (the “2014 Plan”). Upon approval of the 2014 Plan, no new awards may be granted under the Amended and Restated 2010 Equity Incentive Plan (the “2010 Plan”). As of June 30, 2022, the number of stock options (“Stock Options”) and restricted stock units (“RSUs”) authorized under the 2014 Plan is approximately 4,216,707. The Company has issued RSUs with four different vesting criteria: those RSUs that vest based on the attainment of book-value goals, those RSUs that vest based on the attainment of Total Shareholder Return (“TSR”) goals, time based RSUs that vest ratably over a time period of three years and RSUs that cliff vest at the end of a one or two year period.

As of June 30, 2022, the Company had no outstanding Stock Options and no unrecognized compensation costs related to outstanding Stock Options. For the three and six months ended June 30, 2022 and 2021, there were no stock-based compensation expenses related to Stock Options.

The Company recorded $6.6 million and $6.7 million of stock-based compensation expense related to RSUs for the three months ended June 30, 2022 and 2021, respectively.

16

Air Lease Corporation and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The Company recorded $4.0 million and $12.1 million of stock-based compensation expense related to RSUs for the six months ended June 30, 2022 and 2021, respectively. The decrease in stock-based compensation relates to reductions in the underlying vesting estimates of certain book value RSUs as the performance criteria are no longer considered probable of being achieved.

Restricted Stock Units

Compensation cost for RSUs is measured at the grant date based on fair value and recognized over the vesting period. The fair value of book value and time based RSUs is determined based on the closing market price of the Company’s Class A common stock on the date of grant, while the fair value of RSUs that vest based on the attainment of Total Shareholder Return (“TSR”) goals is determined at the grant date using a Monte Carlo simulation model. Included in the Monte Carlo simulation model were certain assumptions regarding a number of highly complex and subjective variables, such as expected volatility, risk-free interest rate and expected dividends. To appropriately value the award, the risk-free interest rate is estimated for the time period from the valuation date until the vesting date and the historical volatilities were estimated based on a historical timeframe equal to the time from the valuation date until the end date of the performance period.

During the six months ended June 30, 2022, the Company granted 652,016 RSUs of which 110,237 are TSR RSUs and 220,437 are book value RSUs. The following table summarizes the activities for the Company’s unvested RSUs for the six months ended June 30, 2022:

	Unvested Restricted Stock Units
	Number of Shares	Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2021	1,571,415	$	43.88
Granted	652,016	$	47.24
Vested	(542,060)	$	42.50
Forfeited/canceled	(162,177)	$	40.51
Unvested at June 30, 2022	1,519,194	$	45.88
Expected to vest after June 30, 2022	1,317,556	$	46.52

As of June 30, 2022, there was $40.3 million of unrecognized compensation expense related to unvested stock-based payments granted to employees. Total unrecognized compensation expense will be recognized over a weighted-average remaining period of 2.10 years.

Note 11. Aircraft Under Management

As of June 30, 2022, the Company managed 89 aircraft across three aircraft management platforms. The Company managed 48 aircraft through its Thunderbolt platform, 35 aircraft through the Blackbird investment funds and six on behalf of other financial institutions.

The Company managed 35 aircraft on behalf of third-party investors, through two investment funds, Blackbird I and Blackbird II. These funds invest in commercial jet aircraft and lease them to airlines throughout the world. The Company provides management services to these funds for a fee. As of June 30, 2022, the Company's non-controlling interests in each fund were 9.5% and are accounted for under the equity method of accounting. The Company’s investments in these funds aggregated $64.2 million and $73.2 million as of June 30, 2022 and December 31, 2021, respectively, and are included in Other assets on the Consolidated Balance Sheets.

Additionally, the Company continues to manage aircraft that it sells through its Thunderbolt platform. The Thunderbolt platform facilitates the sale of mid-life aircraft to investors while allowing the Company to continue the management of these aircraft for a fee. As of June 30, 2022, the Company managed 48 aircraft across three separate transactions. The Company has non-controlling interests in two of these entities of approximately 5.0%, which are accounted for under the cost method of accounting. The Company’s total investment in aircraft sold through its Thunderbolt platform was $8.8 million and $9.3 million as of June 30, 2022 and December 31, 2021, respectively and is included in Other assets on the Consolidated Balance Sheets.

17

Air Lease Corporation and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

In response to the sanctions against certain industry sectors and parties in Russia, in March 2022 the Company terminated all of its leasing activities in Russia. Eight leases for aircraft in the Company’s managed fleet were also terminated. As of August 4, 2022, six aircraft previously included in the Company’s managed fleet remain in Russia. While the applicable managed platform maintains title to the aircraft, the Company has determined that it is unlikely they will regain possession of the aircraft that have not been returned and that remain in Russia. As a result, during the three months ended March 31, 2022, the Company recognized asset write-offs of $11.4 million related to its investments in the managed platforms that own such aircraft. During the three months ended June 30, 2022, the Company did not recognize any asset write-offs related to its investments in the managed platforms. The six aircraft that remain in Russia were removed from the Company’s managed fleet count as of March 31, 2022.

Note 12. Net Investment in Sales-type Leases

As of June 30, 2022, the Company had five A320-200 aircraft on lease to an airline with terms that meet the criteria of being classified as a sales-type lease.

Net investment in sales-type leases was included in Other assets in the Company’s Consolidated Balance Sheets based on the present value of fixed payments under the contract and the residual value of the underlying asset, discounted at the rate implicit in the lease. The Company’s investment in sales-type leases consisted of the following (in thousands):

	June 30, 2022
Future minimum lease payments to be received	$	121,360
Estimated residual values of leased flight equipment	45,844
Less: Unearned income	(26,113)
Net Investment in Sales-type Leases	$	141,091

As of June 30, 2022, future minimum lease payments to be received on sales-type leases were as follows:

	(in thousands)
Years ending December 31,
2022 (excluding the six months ended June 30, 2022)	$	6,150
2023	12,300
2024	12,300
2025	12,300
2026	12,300
Thereafter	66,010
Total	$	121,360

Note 13. Flight Equipment Held for Sale

As of June 30, 2022, the Company had six aircraft, with a carrying value of $220.9 million, which were held for sale and included in Flight equipment subject to operating leases on the Consolidated Balance Sheets. The Company expects the sale of all six aircraft to be completed in 2022. The Company ceases recognition of depreciation expense once an aircraft is classified as held for sale. As of December 31, 2021, the Company did not have any flight equipment classified as held for sale.

18

Note 14. Subsequent Events

On August 3, 2022, the Company’s board of directors approved quarterly dividends for the Company’s Class A common stock and Series A, B and C Preferred Stock. The following table summarizes the details of the dividends that were declared:

Title of each class	Cash dividend per share		Record Date	Payment Date
Class A Common Stock	$	0.185	September 12, 2022	October 7, 2022
Series A Preferred Stock	$	0.384375	August 31, 2022	September 15, 2022
Series B Preferred Stock	$	11.625	August 31, 2022	September 15, 2022
Series C Preferred Stock	$	10.3125	August 31, 2022	September 15, 2022

19

ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read together with our Consolidated Financial Statements and related notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Overview

Air Lease Corporation (the “Company”, “ALC”, “we”, “our” or “us”) is a leading aircraft leasing company that was founded by aircraft leasing industry pioneer, Steven F. Udvar-Házy. We are principally engaged in purchasing the most modern, fuel-efficient new technology commercial jet aircraft directly from aircraft manufacturers, such as The Boeing Company (“Boeing”) and Airbus S.A.S. (“Airbus”), and leasing those aircraft to airlines throughout the world with the intention to generate attractive returns on equity. In addition to our leasing activities, we sell aircraft from our fleet to third-parties, including other leasing companies, financial services companies, airlines and other investors. We also provide fleet management services to investors and owners of aircraft portfolios for a management fee. Our operating performance is driven by the growth of our fleet, the terms of our leases, the interest rates on our debt, and the aggregate amount of our indebtedness, supplemented by gains from aircraft sales and our management fees.

Second Quarter Overview

As of June 30, 2022, the net book value of our fleet was $23.5 billion, compared to $22.9 billion as of December 31, 2021. During the three months ended June 30, 2022, we purchased and took delivery of 21 aircraft from our new order pipeline and one new incremental aircraft, ending the period with a total of 392 aircraft in our owned aircraft portfolio. The weighted average age of our fleet was 4.4 years and the weighted average lease term remaining was 7.1 years as of June 30, 2022. Our managed fleet was 89 aircraft as of June 30, 2022 as compared to a managed fleet of 92 aircraft as of December 31, 2021. We have a globally diversified customer base comprised of 116 airlines in 62 countries as of June 30, 2022. As of August 4, 2022, all aircraft in our fleet, except for one aircraft, were subject to lease agreements or letters of intent.

As of June 30, 2022, we had commitments to purchase 430 aircraft from Boeing and Airbus for delivery through 2028, with an estimated aggregate commitment of $27.6 billion. We have placed approximately 99% of our committed orderbook on long-term leases for aircraft delivering through the end of 2023 and have placed 58% of our entire orderbook. We ended the second quarter of 2022 with $31.3 billion in committed minimum future rental payments, consisting of $15.0 billion in contracted minimum rental payments on the aircraft in our existing fleet and $16.3 billion in minimum future rental payments related to aircraft which will deliver between 2022 through 2027.

We typically finance the purchase of aircraft and our business with available cash balances, internally generated funds, including through aircraft sales, preferred stock issuances, and debt financings. We ended the second quarter of 2022 with an aggregate borrowing capacity under our revolving credit facility of $6.6 billion and total liquidity of $7.6 billion. As of June 30, 2022, we had total debt outstanding of $18.5 billion, of which 92.4% was at a fixed rate and 99.3% was unsecured. As of June 30, 2022, our composite cost of funds raised through debt financings was 2.81%.

Our total revenues for the quarter ended June 30, 2022 increased by 13.4% to $557.7 million, compared to the quarter ended June 30, 2021. The increase in total revenues was primarily driven by the continued growth in our fleet and the recognition of cash basis revenue of $8.7 million as compared to $41.6 million of cash basis losses in three months ended June 30, 2021. This increase was partially offset by the loss of rental revenue from the termination of our leasing activities in Russia during the first quarter of 2022 and lower aircraft sales, trading and other revenue. Lower aircraft sales, trading and other revenue was driven by $34.0 million in revenue recognized in the prior year related to the sale to a third party of certain unsecured claims related to Aeromexico’s insolvency proceedings.

During the second quarter of 2022, the industry continued to recover from the impact of COVID-19. As of June 30, 2022, we had $182.1 million in outstanding deferred rentals due to the impact of the COVID-19 pandemic as compared to $203.2 million as of December 31, 2021. Our collection rate for the three and six months ended June 30, 2022 were 94.7% and 96.0%, respectively. Our collection rate is defined as the sum of cash collected from lease rentals and maintenance reserves, including cash recovered from outstanding receivables from previous periods, as a percentage of the total contracted receivables due during the period and is calculated after giving effect to lease deferral arrangements made as of June 30, 2022. Our lease utilization rate for the three and six

20

months ended June 30, 2022 were 99.6% and 99.7%, respectively. Lease utilization rate is calculated based on the number of days each aircraft was subject to a lease or letter of intent during the period, weighted by the net book value of the aircraft.

During the three months ended June 30, 2022, we recorded net income attributable to shareholders of $105.9 million, or $0.95 per diluted share, as compared to net income attributable to shareholders of $85.6 million, or $0.75 per diluted share, in the prior period. The increase in our net income attributable to shareholders is primarily due to the continued growth of our fleet and the increase in revenues as discussed above.

We recorded adjusted net income before income taxes for the three months ended June 30, 2022 of $154.5 million or $1.39 per diluted share. This increased by approximately 22.7% over the prior period results of $125.9 million or $1.10 per diluted share for the three months ended June 30, 2021. This was due to the continued growth of our fleet and the increase in revenues as discussed above. Adjusted net income before income taxes and adjusted diluted earnings per share before income taxes are measures of financial and operational performance that are not defined by U.S. Generally Accepted Accounting Principles (“GAAP”). See “Results of Operations” below for a discussion of adjusted net income before income taxes and adjusted diluted earnings per share before income taxes as non-GAAP measures and a reconciliation of these measures to net income attributable to common stockholders.

Impact of Russia-Ukraine Conflict

In connection with the ongoing conflict between Russia and Ukraine, the United States, European Union, United Kingdom and others have imposed, and may continue to impose, economic sanctions and export controls against certain industry sectors and parties in Russia. These sanctions include closures of airspace for aircraft operated by Russian controlled entities, bans on the leasing or sale of aircraft to Russian controlled entities, bans on the export and re-export of aircraft and aircraft components to Russian controlled entities or for use in Russia, and corresponding prohibitions on providing technical assistance, brokering services, insurance and reinsurance, as well as financing or financial assistance.

In response to the sanctions, in March 2022 we terminated all of our leasing activities in Russia, consisting of 24 aircraft in our owned fleet, eight aircraft in our managed fleet and the leasing activity relating to 29 aircraft that have not yet delivered from our orderbook, for which the majority have been subsequently placed. In the first quarter of 2022, we also canceled five aircraft in our orderbook that were slated for delivery in Russia. As of August 4, 2022, 21 aircraft previously included in our owned fleet and six aircraft previously included in our managed fleet still remain in Russia. The operators of these aircraft have continued to fly most of these aircraft notwithstanding the termination of leasing activities and repeated demands for the return of the assets. The 21 aircraft previously included in our owned fleet provided approximately $18.0 million per quarter in rental revenue. Our future revenues and cash flows have been impacted by the termination of our leasing activities of the aircraft in Russia.

While we or the applicable managed platform maintain title to the aircraft, we determined that it is unlikely we or they will regain possession of the aircraft that have not been returned and that remain in Russia. As a result, we recorded a write-off of our interests in our owned and managed aircraft that remain in Russia, totaling approximately $802.4 million for the three months ended March 31, 2022. The 21 aircraft that remain in Russia were removed from our owned fleet as of March 31, 2022. In June 2022, we submitted insurance claims to our insurers to recover our losses relating to these aircraft and are vigorously pursuing all available insurance claims. In addition, we intend to pursue all available legal claims related to our aircraft that remain in Russia, but the timing and amount of any recoveries under any insurance or legal claims are uncertain at this time. During the second quarter of 2022, we renewed our insurance policies which resulted in an annualized premium increase of approximately $16.0 million. These policies apply worldwide with exclusions for Russia, Ukraine and Belarus. Our leases require our lessees to carry comprehensive liability insurance and aircraft all-risk insurance. As a result, lessees operating in Russia, Ukraine or Belarus are required to have insurance covering those regions or they are not permitted under the terms of their lease to operate in such countries.

For more information regarding the risks we face relating to the Russia-Ukraine conflict, see “Part II — Item 1A. Risk Factors,” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

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Our Fleet

References throughout this Quarterly Report on Form 10-Q to “our fleet” refer to the aircraft included in flight equipment subject to operating leases and do not include aircraft in our managed fleet or aircraft classified as net investments in sales-type leases unless the context indicates otherwise. Portfolio metrics of our fleet as of June 30, 2022 and December 31, 2021 are as follows:

	June 30, 2022			December 31, 2021
Net book value of flight equipment subject to operating lease	$	23.5	billion	$	22.9	billion
Weighted-average fleet age(1)	4.4 years			4.4 years
Weighted-average remaining lease term(1)	7.1 years			7.2 years
Owned fleet	392			382
Managed fleet	89			92
Aircraft on order	430			431
Total	911			905
Current fleet contracted rentals	$	15.0	billion	$	14.8	billion
Committed fleet rentals	$	16.3	billion	$	16.1	billion
Total committed rentals	$	31.3	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 sets forth the net book value and percentage of the net book value of our flight equipment subject to operating leases in the indicated regions based on each airline’s principal place of business as of June 30, 2022 and December 31, 2021:

	June 30, 2022				December 31, 2021
Region	Net Book Value		% of Total		Net Book Value		% of Total
	(in thousands, except percentages)
Europe	$	7,339,480	31.3	%	$	7,439,993	32.5	%
Asia (excluding China)	6,609,314		28.2	%	5,952,981		26.0	%
China	2,871,509		12.2	%	2,934,224		12.8	%
The Middle East and Africa	2,359,738		10.1	%	2,447,919		10.7	%
Central America, South America, and Mexico	1,724,076		7.3	%	1,566,133		6.8	%
U.S. and Canada	1,662,953		7.1	%	1,638,450		7.2	%
Pacific, Australia, and New Zealand	900,672		3.8	%	919,304		4.0	%
Total	$	23,467,742	100.0	%	$	22,899,004	100.0	%

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The following table sets forth the number of aircraft in our owned fleet by aircraft type as of June 30, 2022 and December 31, 2021:

	June 30, 2022			December 31, 2021
Aircraft type	Number of Aircraft	% of Total		Number of Aircraft	% of Total
Airbus A319-100	1	0.3	%	1	0.3	%
Airbus A320-200	28	7.1	%	31	8.1	%
Airbus A320-200neo	26	6.6	%	23	6.0	%
Airbus A321-200	24	6.1	%	26	6.8	%
Airbus A321-200neo	70	17.9	%	69	18.1	%
Airbus A330-200	13	3.3	%	13	3.4	%
Airbus A330-300	5	1.3	%	8	2.1	%
Airbus A330-900neo	11	2.8	%	9	2.4	%
Airbus A350-900	13	3.3	%	12	3.1	%
Airbus A350-1000	6	1.5	%	5	1.3	%
Boeing 737-700	4	1.0	%	4	1.0	%
Boeing 737-800	84	21.4	%	88	23.0	%
Boeing 737-8 MAX	39	9.9	%	28	7.3	%
Boeing 737-9 MAX	10	2.7	%	7	1.8	%
Boeing 777-200ER	1	0.3	%	1	0.3	%
Boeing 777-300ER	24	6.1	%	24	6.3	%
Boeing 787-9	26	6.6	%	26	6.8	%
Boeing 787-10	6	1.5	%	6	1.6	%
Embraer E190	1	0.3	%	1	0.3	%
Total (1)	392	100.0	%	382	100.0	%
(1) As of June 30, 2022, we had six aircraft classified as flight equipment held for sale. As of December 31, 2021, we did not have any flight equipment classified as held for sale.

As of June 30, 2022, we had contractual commitments to acquire a total of 430 new aircraft, with an estimated aggregate purchase price (including adjustments for anticipated inflation) of $27.6 billion, for delivery through 2028 as follows:

	Estimated Delivery Years
Aircraft Type	2022	2023	2024	2025	2026	Thereafter	Total
Airbus A220-100/300	4	16	24	20	12	—	76
Airbus A320/321neo(1)	17	23	23	24	35	64	186
Airbus A330-900neo	6	6	4	—	—	—	16
Airbus A350-900/1000	1	3	3	—	—	—	7
Airbus A350F	—	—	—	—	2	5	7
Boeing 737-8/9 MAX	14	31	34	19	16	—	114
Boeing 787-9/10	3	7	8	6	—	—	24
Total(2)	45	86	96	69	65	69	430
(1) The Company’s Airbus A320/321neo aircraft orders include 26 long-range variants and 49 extra long-range variants.
(2) The table above reflects Airbus and Boeing aircraft delivery delays based on contractual documentation.

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Aircraft Delivery Delays

Pursuant to our purchase agreements with Boeing and Airbus, we agree to contractual delivery dates for each aircraft ordered. These dates can change for a variety of reasons, however for the last several years, manufacturing delays have significantly impacted the planned purchases of our aircraft on order with Boeing and Airbus. We are currently experiencing delivery delays with both Boeing and Airbus aircraft. However, the most significant delivery delays pertain to our aircraft orders for Boeing 787 aircraft.

During 2020, Boeing began to experience manufacturing issues on its 787 aircraft, which resulted in significant aircraft delivery delays. Boeing halted 787 deliveries in May 2021 and has not indicated when they will resume. We have not received any 787s since the halting of the deliveries by Boeing. It is our understanding that, in July 2022, the FAA approved Boeing’s plan to inspect and repair 787 aircraft, which will allow deliveries to resume. However, the pace and the timing of deliveries of the aircraft for the remainder of this year and potentially beyond still remains uncertain.

Our purchase agreements with Boeing and Airbus generally provide each of us and the manufacturers with cancellation rights for delivery delays starting at one year after the original contractual delivery date, regardless of cause. In addition, our lease agreements generally provide each of us and the lessees with cancellation rights related to certain aircraft delivery delays that typically parallel the cancellation rights in our purchase agreements.

We believe that the majority of our 787 aircraft deliveries in our orderbook will be delayed, which could give us, our airline customers and Boeing the right to cancel these aircraft commitments.

As a result of continued manufacturing delays as discussed above, our aircraft delivery schedule could continue to be subject to material changes and delivery delays could extend beyond 2022.

The following table, which is subject to change based on Airbus and Boeing delivery delays, shows the number of new aircraft scheduled to be delivered as of June 30, 2022, along with the lease placements of such aircraft as of August 4, 2022. As noted above, we expect delivery delays for all aircraft deliveries in our orderbook. We remain in discussions with Boeing and Airbus to determine the extent and duration of delivery delays, but we are not yet able to determine the full impact of these delays.

Delivery Year	Number Leased	Number of Aircraft	% Leased
2022	45	45	100.0	%
2023	85	86	98.8	%
2024	58	96	60.4	%
2025	35	69	50.7	%
2026	16	65	24.6	%
Thereafter	9	69	13.0	%
Total	248	430

Aircraft Industry and Sources of Revenues

Our revenues are principally derived from operating leases with airlines throughout the world. As of June 30, 2022, we had a globally diversified customer base of 116 airlines in 62 different countries, with over 95% of our business revenues from airlines domiciled outside of the U.S., and we anticipate that most of our revenues in the future will be generated from foreign customers.

Performance of the commercial airline industry is linked to global economic health and development. Despite the disruption caused to the commercial airline industry by the COVID-19 pandemic since early 2020, global air travel continues to recover and has accelerated in most markets. The International Air Transport Association (“IATA”) reported that passenger traffic was up 76% in the month of June 2022 relative to the same month in the prior year, benefiting from a significant acceleration in international traffic and strong continued expansion of domestic traffic in most markets. International traffic in June of 2022 rose 230% relative to the prior year, though it remains 35% lower than the same month in 2019. Global domestic passenger traffic in June 2022 rose 5% relative to the prior year, with all major markets rising except China domestic given residual impact of COVID-related travel constraints, and

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was 19% lower than the same month in 2019. According to IATA, several international routes are now exceeding 2019 traffic levels or are expected to exceed those levels near-term, several other domestic markets are quickly approaching 2019 levels. China domestic traffic is also recently showing signs of stabilization. We believe COVID-19 vaccination progress, therapeutic treatments and the easing of travel restrictions will continue to support the recovery of air passenger traffic and the commercial airline industry.

Currently, we are experiencing increased demand for our aircraft as global air traffic recovers from the pandemic. We believe supply chain challenges will further exacerbate what was already shaping up to be a shortage of commercial aircraft. The increased demand for our aircraft, when combined with rising interest rates and inflation, is providing a catalyst for rising lease rates. Lease rates can be influenced by several factors including impacts of changes in the competitive landscape of the aircraft leasing industry, supply chain disruptions, evolving international trade matters, epidemic diseases and geopolitical events and therefore, are difficult to project or forecast.

Our airline customers are facing higher operating costs as a result of rising fuel costs, interest rates and inflation, ongoing labor shortages and disputes, as well as delays and cancellations caused by the global air traffic control system and airports, although the magnitude of underlying pre-pandemic demand returning and still-to-return to the market is offering a strong counterbalance to these increased costs. Many of these customers are also exposed to currency risk related to the appreciation of the U.S. dollar because they earn revenues in their local currencies while a significant portion of their liabilities and expenses are denominated in U.S. dollars, including their lease payments to us. If our airline customers are not able to effectively manage their operating costs and currency risk, it could impact our financial results and cash flows.

We continue to expect more airline reorganizations, liquidations, or other forms of bankruptcies, which may include some of our aircraft customers and result in the early return of aircraft or changes in our lease terms. As of the date of this filing, we had eight aircraft across three airlines which were subject to various forms of insolvency proceedings.

We believe the aircraft leasing industry has remained resilient over time across a variety of global economic conditions and remain optimistic about the long-term fundamentals of our business. We expect the aviation industry to continue to recover from the impact of COVID-19.

Liquidity and Capital Resources

Overview

We ended the second quarter of 2022 with available liquidity of $7.6 billion which is comprised of unrestricted cash of $1.0 billion and undrawn balances under our unsecured revolving credit facility of $6.6 billion. We finance the purchase of aircraft and our business operations using available cash balances, internally generated funds, including through aircraft sales and trading activity, and an array of financing products. We aim to maintain investment-grade credit metrics and focus our debt financing strategy on funding our business on an unsecured basis with primarily fixed-rate debt from public bond offerings. Unsecured financing provides us with operational flexibility when selling or transitioning aircraft from one airline to another. We also have the ability to seek debt financing secured by our assets, as well as financings supported through the Export-Import Bank of the United States and other export credit agencies for future aircraft deliveries. We have also issued preferred stock with a total aggregate stated value of $850.0 million. Our access to a variety of financing alternatives including unsecured public bonds, private capital, bank debt, secured financings and preferred stock issuances serves as a key advantage in managing our liquidity. Aircraft delivery delays as a product of manufacturer delays are expected to further reduce our aircraft investment and debt financing needs for the next six to twelve months and potentially beyond.

We have a balanced approach to capital allocation based on the following priorities, ranked in order of importance: first, investing in modern, in-demand aircraft to profitably grow our core aircraft leasing business while maintaining strong fleet metrics and creating sustainable long-term shareholder value; second, maintaining our investment grade balance sheet utilizing unsecured debt as our primary form of financing; and finally, in lockstep with the aforementioned priorities, returning excess cash to shareholders through our dividend policy as well as regular evaluation of share repurchases, as appropriate.

We ended the second quarter of 2022 with total debt outstanding of $18.5 billion compared to $17.2 billion as of December 31, 2021. Our unsecured debt outstanding increased to $18.4 billion as of June 30, 2022 from $17.1 billion as of December 31, 2021. Our unsecured debt as a percentage of total debt was 99.3% and 99.2% as of June 30, 2022 and December 31, 2021, respectively.

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Material Cash Sources and Requirements

We believe that we have sufficient liquidity from available cash balances, cash generated from ongoing operations, available borrowings under our unsecured revolving credit facility and general ability to access the capital markets for opportunistic public bond offerings to satisfy the operating requirements of our business through at least the next 12 months. Our long-term debt financing strategy is focused on continuing to raise unsecured debt in the global bank and investment grade capital markets. Our material cash sources include:

•Unrestricted cash: We ended the second quarter of 2022 with $1.0 billion in unrestricted cash.

•Lease cash flows: We ended the second quarter of 2022 with $31.3 billion in committed minimum future rental payments comprised of $15.0 billion in contracted minimum rental payments on the aircraft in our existing fleet and $16.3 billion in minimum future rental payments related to aircraft which will deliver between 2022 through 2027. These rental payments are a primary driver of our short and long-term operating-cash-flow. As of June 30, 2022, our minimum future rentals on non-cancellable operating leases for the next 12 months was $2.2 billion. For further detail on our minimum future rentals for the remainder of 2022 and thereafter, see “Notes to Consolidated Financial Statements” under “Item 1. Financial Statements” in this Quarterly Report on Form 10-Q.

•Unsecured revolving credit facility: As of August 4, 2022, our $7.1 billion revolving credit facility is syndicated across 53 financial institutions from various regions of the world, diversifying our reliance on any individual lending institution. The final maturity for the facility is May 2026. The facility contains standard investment grade covenants and does not condition our ability to borrow on the lack of a material adverse effect to us or the general economy.

•Senior unsecured bonds: We are a frequent issuer in the investment grade capital markets, opportunistically issuing unsecured bonds, primarily through our Medium-Term Note Program at attractive cost of funds. In 2022, we have issued $1.5 billion of Medium-Term Notes with a weighted average interest rate of 2.54% and we expect to have continued access to the investment grade bond market in the future, although we anticipate interest rates for issuances in the near term will increase from those available in recent years.

•Aircraft sales: Proceeds from the sale of aircraft help supplement our liquidity position. We are targeting to sell up to $750.0 million in aircraft for 2022, subject to any further significant delivery delays we might experience during the second half of this year.

•Other sources: In addition to the above, we generate liquidity through other sources of debt financing (including unsecured and secured bank term loans), issuances of preferred stock and cash received from security deposits and maintenance reserves from our lease agreements.

Our material cash requirements are primarily for the purchase of aircraft and debt service payments, along with our general operating expenses. The amount of our cash requirements depends on a variety of factors, including, the ability of aircraft manufacturers to meet their contractual delivery obligations to us, the ability of our lessees to meet their contractual obligations with us, the timing of aircraft sales from our fleet, the timing and amount of our debt service obligations, potential acquisitions, and the general economic environment in which we operate.

While we have experienced a low interest rate environment for many years, substantial improvement in the labor markets, higher inflation and geopolitical events have led to an increase in borrowing rates. We expect short-term interest rates to continue to rise. A higher interest rate environment may adversely affect our businesses through increased borrowing costs, although this impact may be offset in whole or in part if increased interest rates lead to an increase in leasing activity by our airline customers.

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Our material cash requirements as of June 30, 2022, are as follows:

	2022		2023		2024		2025		2026		Thereafter		Total
Long-term debt obligations	$	1,291,611	$	2,566,329	$	2,885,280	$	2,404,761	$	3,963,094	$	5,420,177	$	18,531,252
Interest payments on debt outstanding(1)	265,327		488,339		412,246		339,308		235,360		432,636		2,173,216
Purchase commitments(2)	3,082,573		6,057,223		6,223,538		4,186,938		3,641,767		4,433,109		27,625,148
Total	$	4,639,511	$	9,111,891	$	9,521,064	$	6,931,007	$	7,840,221	$	10,285,922	$	48,329,616
(1) Future interest payments on floating rate debt are estimated using floating rates in effect at June 30, 2022.
(2) Purchase commitments reflect future Boeing and Airbus aircraft deliveries based on information currently available to us based on contractual documentation.

The above table does not include any tax payments we may pay nor any dividends we may pay on our preferred stock or common stock. Based on our expected cash sources and requirements for the remainder of 2022, we believe that we have sufficient liquidity to meet our cash requirements for aircraft deliveries and debt service obligations. We expect that we will continue to access the capital markets for public bond offerings over the next 12 months.

The actual delivery dates of the aircraft in our commitments table and expected time for payment of such aircraft may differ from our estimates and could be further impacted by the pace at which Boeing and Airbus can deliver aircraft, among other factors. We expect to make approximately $3.5 billion to $4.5 billion in aircraft investments in 2022, which reflects a high degree of uncertainty around the Boeing 787 program as well as other potential production delays.

As of June 30, 2022, we were in compliance in all material respects with the covenants contained in our debt agreements. While a ratings downgrade would not result in a default under any of our debt agreements, it could adversely affect our ability to issue debt and obtain new financings, or renew existing financings, and it would increase the costs of certain financings. Our liquidity plans are subject to a number of risks and uncertainties, including those described in our Annual Report on Form 10-K for the year ended December 31, 2021, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and other SEC filings.

Cash Flows

Our cash flows provided by operating activities increased by 14.3% or $86.2 million, to $688.8 million for the six months ended June 30, 2022 as compared to $602.7 million for the six months ended June 30, 2021. Our cash flow provided by operating activities during the six months ended June 30, 2022 increased due to the continued growth of our fleet and an increase in our cash collections as compared to the six months ended June 30, 2021. Our cash flow used in investing activities was $2.0 billion for the six months ended June 30, 2022 and $1.4 billion for the six months ended June 30, 2021, which resulted primarily from the purchase of aircraft. Our cash flow provided by financing activities was $1.3 billion for the six months ended June 30, 2022 as compared to $273.7 million for the six months ended June 30, 2021. The increase is primarily due to the issuance of debt, net of debt repayments, related in part to the acquisition of aircraft investments.

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Debt

Our debt financing at June 30, 2022 and December 31, 2021 is summarized below:

	June 30, 2022			December 31, 2021
	( in thousands, except percentages)
Unsecured
Senior notes	$	17,685,728		$	16,892,058
Term financings	190,325			167,000
Revolving credit facility	520,000			—
Total unsecured debt financing	18,396,053			17,059,058
Secured
Term financings	120,226			126,660
Export credit financing	14,973			18,301
Total secured debt financing	135,199			144,961
Total debt financing	18,531,252			17,204,019
Less: Debt discounts and issuance costs	(195,177)			(181,539)
Debt financing, net of discounts and issuance costs	$	18,336,075		$	17,022,480
Selected interest rates and ratios:
Composite interest rate(1)	2.81		%	2.79		%
Composite interest rate on fixed-rate debt(1)	2.85		%	2.90		%
Percentage of total debt at a fixed-rate	92.4		%	94.8		%
(1) This rate does not include the effect of upfront fees, facility fees, undrawn fees or amortization of debt discounts and issuance costs.

Senior unsecured notes (including Medium-Term Note Program)

As of June 30, 2022, we had $17.7 billion in senior unsecured notes outstanding. As of December 31, 2021, we had $16.9 billion in senior unsecured notes outstanding.

During the six months ended June 30, 2022, we issued $1.5 billion in aggregate principal amount of senior unsecured notes comprised of (i) $750.0 million in aggregate principal amount of 2.20% Medium-Term Notes due 2027, and (ii) $750.0 million in aggregate principal amount of 2.875% Medium-Term Notes due 2032.

For more information regarding our senior unsecured notes outstanding, see Note 2 of Notes to Consolidated Financial Statements included in Part III, Item 15 of our Annual Report on Form 10-K for the year ended December 31, 2021.

Unsecured revolving credit facility

As of June 30, 2022, we had $520.0 million outstanding under our unsecured revolving credit facility (the “Revolving Credit Facility”). As of December 31, 2021, we did not have any amounts outstanding under our Revolving Credit Facility. Borrowings under the Revolving Credit Facility are used to finance our working capital needs in the ordinary course of business and for other general corporate purposes.

In April 2022, we amended and extended our Revolving Credit Facility through an amendment that, among other things, extended the final maturity date from May 5, 2025 to May 5, 2026, increased the total revolving commitments to approximately $7.0 billion as of May 5, 2022 and replaced LIBOR with Term SOFR as the benchmark interest rate and made certain conforming changes related thereto. As of June 30, 2022, borrowings under the Revolving Credit Facility accrued interest at Adjusted Term SOFR (as defined in the Revolving Credit Facility), plus a margin of 1.05% per year. We are required to pay a facility fee of 0.20% per year

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in respect of total commitments under the Revolving Credit Facility. Interest rate and facility fees are subject to increases or decreases based on declines or improvements in the credit ratings for our debt.

In June 2022, we increased the aggregate facility capacity by an additional $122.5 million and also extended the maturity of $125.0 million in commitments to May 5, 2026. As of August 4, 2022, we had total revolving commitments of approximately $7.1 billion. Lenders held revolving commitments totaling approximately $6.7 billion that mature on May 5, 2026, commitments totaling $32.5 million that mature on May 5, 2025 and commitments totaling $375.0 million that mature on May 5, 2023.

The Revolving Credit Facility provides for certain covenants, including covenants that limit our subsidiaries’ ability to incur, create, or assume certain unsecured indebtedness, and our subsidiaries’ abilities to engage in certain mergers, consolidations, and asset sales. The Revolving Credit Facility also requires us to comply with certain financial maintenance covenants including minimum consolidated shareholders’ equity, minimum consolidated unencumbered assets, and an interest coverage test. In addition, the Revolving Credit Facility contains customary events of default. In the case of an event of default, the lenders may terminate the commitments under the Revolving Credit Facility and require immediate repayment of all outstanding borrowings.

Other debt financings

From time to time, we enter into other debt financings such as unsecured term financings and secured term financings, including export credit. As of June 30, 2022, the outstanding balance on other debt financings was $325.5 million and we had pledged three aircraft as collateral with a net book value of $217.1 million. As of December 31, 2021, the outstanding balance on other debt financings was $312.0 million and we had pledged three aircraft as collateral with a net book value of $222.2 million.

Preferred equity

The following table summarizes our preferred stock issued and outstanding as of June 30, 2022 (in thousands, except for share amounts and percentages):

	Shares Issued and Outstanding as of June 30, 2022	Carrying Value as of June 30, 2022		Issue Date	Dividend Rate in Effect at June 30, 2022		Next dividend rate reset date	Dividend rate after reset date
Series A	10,000,000	$	250,000	March 5, 2019	6.150	%	March 15, 2024	3M LIBOR plus 3.65%
Series B	300,000	300,000		March 2, 2021	4.650	%	June 15, 2026	5 Yr U.S. Treasury plus 4.076%
Series C	300,000	300,000		October 13, 2021	4.125	%	December 15, 2026	5 Yr U.S. Treasury plus 3.149%
Total Preferred Stock	10,600,000	$	850,000

For more information regarding our preferred stock issued and outstanding, see Note 4 of Notes to Consolidated Financial Statements included in Part III, Item 15 of our Annual Report on Form 10-K for the year ended December 31, 2021.

The following table summarizes the cash dividends that we paid during the six months ended June 30, 2022 on our outstanding Series A, Series B and Series C Preferred Stock:

Title of each class	March 15, 2022	June 15, 2022
	(in thousands)
Series A Preferred Stock	$3,844	$3,844
Series B Preferred Stock	$3,487	$3,487
Series C Preferred Stock	$3,094	$3,094

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Off‑balance Sheet Arrangements

We have not established any unconsolidated entities for the purpose of facilitating off-balance sheet arrangements or for other contractually narrow or limited purposes. We have, however, from time to time established subsidiaries or trusts for the purpose of leasing aircraft or facilitating borrowing arrangements which are consolidated.

We have non-controlling interests in two investment funds in which we own 9.5% of the equity of each fund. We account for our interest in these funds under the equity method of accounting due to our level of influence and involvement in the funds. Also, we manage aircraft that we have sold through our Thunderbolt platform. In connection with the sale of certain aircraft portfolios through our Thunderbolt platform, we hold non-controlling interests of approximately 5.0% in two entities. These investments are accounted for under the cost method of accounting.

Impact of LIBOR Transition

On March 5, 2021, the Chief Executive of the U.K. Financial Conduct Authority, which regulates LIBOR, publicly announced that no new contracts using U.S. dollar LIBOR should be entered into after December 31, 2021, and that publication of certain tenors of U.S. dollar LIBOR (including overnight and one, three, six and 12 months) will permanently cease after June 30, 2023. In the United States, efforts to identify a set of alternative U.S. dollar reference interest rates are ongoing, and the Alternative Reference Rate Committee (“ARRC”) has recommended the use of a Secured Overnight Funding Rate (“SOFR”). SOFR is different from LIBOR in that it is a backward-looking secured rate rather than a forward-looking unsecured rate. For cash products and loans, the ARRC has also recommended Term SOFR, which is a forward-looking SOFR based on SOFR futures and may in part reduce differences between SOFR and LIBOR.

As of June 30, 2022, we had approximately $0.8 billion of floating rate debt outstanding that used either one or three-month LIBOR as the applicable reference rate to calculate the interest on such debt, of which $155.5 million is set to mature after June 30, 2023. Additionally, our perpetual Series A Preferred Stock is set to accrue dividends at a floating rate determined by reference to three-month LIBOR, if available, beginning March 15, 2024. While all of our agreements governing LIBOR-linked debt obligations and Series A Preferred Stock obligations that are set to mature after June 30, 2023 contain LIBOR transition fallback provisions, the lack of a standard market practice and inconsistency in fallback provisions in recent years is reflected across the agreements governing our floating rate debt and Series A Preferred Stock. For our Series A Preferred Stock, if we determine there is no such alternative reference rate as of March 15, 2024, then we must select an independent financial advisor to determine a substitute rate for LIBOR, and if an independent financial advisor cannot determine an alternative reference rate, the dividend rate, business day convention and manner of calculating dividends applicable during the fixed-rate period of the Series A Preferred Stock will be in effect.

In April 2022, we amended and extended our Revolving Credit Facility through an amendment that, among other things, replaced LIBOR with Term SOFR as the benchmark interest rate. After that amendment, borrowings under the amended Revolving Credit Facility accrue interest at Adjusted Term SOFR (as defined in the Revolving Credit Facility), plus a margin of 1.05% per year subject to increases or decreases based on declines or improvements in the credit ratings for our debt.

The implementation of a substitute reference rate for the calculation of interest rates under our LIBOR linked debt and Series A Preferred Stock obligations may cause us to incur expenses in effecting the transition and may result in disputes with our lenders or holders of Series A Preferred Stock over the appropriateness or comparability to LIBOR of the substitute reference rate selected. However, we do not expect the LIBOR transition impact will have a material effect on our financial results based on our anticipated LIBOR linked outstanding debt and Series A Preferred Stock at June 30, 2023.

If the rate used to calculate interest on our outstanding floating rate debt that as of June 30, 2022, used LIBOR and our Series A Preferred Stock were to increase by 1.0% either as a result of an increase in LIBOR or the result of the use of an alternative reference rate determined under the fallback provisions in the applicable financial instrument when LIBOR is discontinued, we would expect to incur additional interest expense and preferred dividends of $8.4 million and $2.5 million, respectively on such indebtedness and our Series A Preferred Stock as of June 30, 2022 on an annualized basis.

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Credit Ratings

In June 2022, Fitch Ratings reaffirmed our corporate rating, long-term debt credit rating and outlook. Our investment-grade corporate and long-term debt credit ratings help us to lower our cost of funds and broaden our access to attractively priced capital. The following table summarizes our current credit ratings:

Rating Agency	Long-term Debt	Corporate Rating	Outlook	Date of Last Ratings Action
Kroll Bond Ratings	A-	A-	Stable	March 25, 2022
Standard and Poor's	BBB	BBB	Stable	April 21, 2022
Fitch Ratings	BBB	BBB	Stable	June 28, 2022

While a ratings downgrade would not result in a default under any of our debt agreements, it could adversely affect our ability to issue debt and obtain new financings, or renew existing financings, and it would increase the cost of our financings.

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Results of Operations

The following table presents our historical operating results for the three and six months ended June 30, 2022 and 2021 (in thousands, except per share amounts and percentages):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	(unaudited)
Revenues
Rental of flight equipment	$	545,271		$	452,044		$	1,111,825		$	920,139
Aircraft sales, trading and other	12,425			39,833			42,533			46,565
Total revenues	557,696			491,877			1,154,358			966,704
Expenses
Interest	118,997			113,598			236,274			231,584
Amortization of debt discounts and issuance costs	13,413			12,513			26,610			24,538
Interest expense	132,410			126,111			262,884			256,122
Depreciation of flight equipment	235,284			217,817			470,591			426,782
Write-off of Russian fleet	—			—			802,352			—
Selling, general and administrative	38,512			26,687			71,277			53,601
Stock-based compensation expense	6,558			6,700			4,035			12,108
Total expenses	412,764			377,315			1,611,139			748,613
Income/(loss) before taxes	144,932			114,562			(456,781)			218,091
Income tax (expense)/benefit	(28,655)			(21,140)			104,065			(40,577)
Net income/(loss)	$	116,277		$	93,422		$	(352,716)		$	177,514
Preferred stock dividends	(10,425)			(7,835)			(20,850)			(11,679)
Net income/(loss) attributable to common stockholders	$	105,852		$	85,587		$	(373,566)		$	165,835
Earnings/(Loss) per share of common stock:
Basic	$	0.95		$	0.75		$	(3.32)		$	1.45
Diluted	$	0.95		$	0.75		$	(3.32)		$	1.45
Other financial data
Pre-tax margin	26.0		%	23.3		%	(39.6)		%	22.6		%
Pre-tax return on common equity (trailing twelve months)	(3.0)		%	8.5		%	(3.0)		%	8.5		%
Adjusted net income before income taxes(1)	$	154,478		$	125,940		$	355,366		$	243,058
Adjusted diluted earnings per share before income taxes(1)	$	1.39		$	1.10		$	3.15		$	2.13
Adjusted pre-tax margin(1)	27.7		%	25.6		%	30.8		%	25.1		%
Adjusted pre-tax return on common equity (trailing twelve months)(1)	12.2		%	9.6		%	12.2		%	9.6		%

__________________________________________

(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

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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 profit margin (in thousands, except percentages):

	Three Months Ended June 30,						Six Months Ended June 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	$	105,852		$	85,587		$	(373,566)		$	165,835
Amortization of debt discounts and issuance costs	13,413			12,513			26,610			24,538
Write-off of Russian fleet	—			—			802,352			—
Stock-based compensation expense	6,558			6,700			4,035			12,108
Income tax expense/(benefit)	28,655			21,140			(104,065)			40,577
Adjusted net income before income taxes	$	154,478		$	125,940		$	355,366		$	243,058
Denominator for adjusted pre-tax margin:
Total revenues	$	557,696		$	491,877		$	1,154,358		$	966,704
Adjusted pre-tax margin(a)	27.7		%	25.6		%	30.8		%	25.1		%
(a) Adjusted pre-tax margin is adjusted net income before income taxes divided by total revenues

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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 June 30,				Six Months Ended June 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	$	105,852	$	85,587	$	(373,566)	$	165,835
Amortization of debt discounts and issuance costs	13,413		12,513		26,610		24,538
Write-off of Russian fleet	—		—		802,352		—
Stock-based compensation expense	6,558		6,700		4,035		12,108
Income tax expense/(benefit)	28,655		21,140		(104,065)		40,577
Adjusted net income before income taxes	$	154,478	$	125,940	$	355,366	$	243,058
Denominator for adjusted diluted earnings per share:
Weighted-average diluted common shares outstanding	111,043,836		114,377,965		112,373,092		114,373,576
Potentially dilutive securities, whose effect would have been anti-dilutive	—		—		301,279		—
Adjusted weighted-average diluted common shares outstanding	111,043,836		114,377,965		112,674,371		114,373,576
Adjusted diluted earnings per share before income taxes(b)	$	1.39	$	1.10	$	3.15	$	2.13
(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

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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  June 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	$	(131,242)		$	389,636
Amortization of debt discounts and issuance costs	52,693			46,802
Write-off of Russian fleet	802,352			—
Stock-based compensation expense	18,443			21,415
Income tax (benefit)/expense	(40,258)			100,165
Adjusted net income before income taxes	$	701,988		$	558,018
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	$	5,951,715		$	5,619,801
Common shareholders' equity as of end of the period	$	5,589,634		$	5,951,715
Average common shareholders' equity	$	5,770,675		$	5,785,758
Adjusted pre-tax return on common equity(c)	12.2		%	9.6		%
(c) Adjusted pre-tax return on common equity is adjusted net income before income taxes divided by average common shareholders’ equity

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Three months ended June 30, 2022, compared to the three months ended June 30, 2021

Rental revenue

During the three months ended June 30, 2022, we recorded $545.3 million in rental revenue, which included overhaul revenue, net of amortization expense related to initial direct costs of $2.4 million, as compared to $452.0 million, which included amortization expense related to initial direct costs, net of overhaul revenue of $9.9 million for the three months ended June 30, 2021. Our owned fleet increased to 392 aircraft with a net book value of $23.5 billion as of June 30, 2022 from 354 aircraft with a net book value of $21.5 billion as of June 30, 2021. The increase in rental revenues was primarily driven by the growth in our fleet and the recognition of cash basis revenue of $8.7 million as compared to $41.6 million of cash basis losses in the three months ended June 30, 2021. This increase was partially offset by the loss of revenues from the termination of our leasing activities in Russia during the first quarter of 2022.

Aircraft sales, trading and other revenue

Aircraft sales, trading and other revenue totaled $12.4 million for the three months ended June 30, 2022 compared to $39.8 million for the three months ended June 30, 2021. The decrease in our aircraft sales, trading and other revenue is primarily attributable to $34.0 million in revenue recognized from the sale to a third party of certain unsecured claims related to Aeromexico’s insolvency proceedings during the quarter ended June 30, 2021. We did not sell any aircraft during the three months ended June 30, 2022 and June 30, 2021.

Interest expense

Interest expense totaled $132.4 million for the three months ended June 30, 2022 compared to $126.1 million for the three months ended June 30, 2021. Our interest expense increased due to an increase in our average debt balance, which was offset by a decline in our composite cost of funds as compared to the prior year. Due to the rising interest rate environment, we expect our interest expense will increase as our average debt balance outstanding and our composite cost of funds each increase in the future.

Depreciation expense

We recorded $235.3 million in depreciation expense of flight equipment for the three months ended June 30, 2022 compared to $217.8 million for the three months ended June 30, 2021. The increase in depreciation expense for the three months ended June 30, 2022, compared to the three months ended June 30, 2021, is primarily attributable to the growth of our fleet during the last twelve months. We expect our depreciation expense to increase as we continue to add aircraft to our fleet.

Selling, general and administrative expenses

We recorded selling, general and administrative expenses of $38.5 million for the three months ended June 30, 2022 compared to $26.7 million for the three months ended June 30, 2021. The increase in selling, general and administrative expenses was primarily due to the increase in business activity, increased expenses related to insurance premiums and the transition of aircraft. During the three months ended June 30, 2022, we renewed our insurance which resulted in an annualized increase in our insurance premiums of approximately $16.0 million that we anticipate will increase our selling, general and administrative expenses in future periods. We expect an increase in operating costs due to higher inflation, increased insurance premiums, and certain geopolitical events, such as the Russia-Ukraine conflict. Selling, general and administrative expenses as a percentage of total revenue increased to 6.9% for the three months ended June 30, 2022 compared to 5.4% for the three months ended June 30, 2021.

Taxes

Our effective tax rate for the quarter increased to 19.8% from 18.5% in the prior year. The effective tax rate increased due to changes in permanent items.

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Net income attributable to common stockholders

For the three months ended June 30, 2022, we reported consolidated net income attributable to common stockholders of $105.9 million, or $0.95 per diluted share, compared to a consolidated net income attributable to common stockholders of $85.6 million, or $0.75 per diluted share, for the three months ended June 30, 2021. Our net income attributable to common stockholders and diluted earnings per share increased due to the continued growth of our fleet, partially offset by the loss of revenues from the termination of our leasing activities in Russia and the $34.0 million recognized from the sale to a third party of certain unsecured claims related to Aeromexico’s insolvency proceedings during the quarter ended June 30, 2021.

Adjusted net income before income taxes

For the three months ended June 30, 2022, we recorded adjusted net income before income taxes of $154.5 million, or $1.39 per adjusted diluted share, compared to an adjusted net income before income taxes of $125.9 million, or $1.10 per adjusted diluted share, for the three months ended June 30, 2021. Our adjusted net income before income taxes and adjusted diluted earnings per share before income taxes increased for the three months ended June 30, 2022 as compared to 2021, primarily due to the continued growth of our fleet and the increase in revenues as discussed above.

Adjusted net income before income taxes and adjusted diluted earnings per share before income taxes are measures of financial and operational performance that are not defined by GAAP. See Note 1 under the “Results of Operations” table above for a discussion of adjusted net income before income taxes and adjusted diluted earnings per share before income taxes as non-GAAP measures and reconciliation of these measures to net income available to common stockholders.

Six months ended June 30, 2022, compared to the six months ended June 30, 2021

Rental revenue

During the six months ended June 30, 2022, we recorded $1.1 billion in rental revenue, which included overhaul revenue, net of amortization expense related to initial direct costs of $42.1 million, as compared to $920.1 million, which included amortization expense related to initial direct costs, net of overhaul revenue of $12.3 million for the six months ended June 30, 2021. Our owned fleet increased to 392 aircraft with a net book value of $23.5 billion as of June 30, 2022 from 354 aircraft with a net book value of $21.5 billion as of June 30, 2021. The increase in rental revenues was primarily driven by the growth in our fleet and the recognition of cash basis revenue of $5.6 million as compared to $90.3 million of cash basis losses in the six months ended June 30, 2021. This increase was partially offset by the loss of revenues from the termination of our leasing activities in Russia during the first quarter of 2022.

Aircraft sales, trading and other revenue

Aircraft sales, trading and other revenue totaled $42.5 million for the six months ended June 30, 2022 compared to $46.6 million for the six months ended June 30, 2021. During the six months ended June 30, 2022, we had approximately $17.9 million in forfeiture of security deposit income from the termination of our leasing activities in Russia and $7.2 million in gains from four sales-type lease transactions in the current year period. Despite the revenue items discussed above, Aircraft sales, trading and other revenue decreased due to $34.0 million in revenue recognized from the sale to a third party of certain unsecured claims related to Aeromexico’s insolvency proceedings during the six months ended June 30, 2021. We did not sell any aircraft during the six months ended June 30, 2022 and June 30, 2021.

Interest expense

Interest expense totaled $262.9 million for the six months ended June 30, 2022 compared to $256.1 million for the six months ended June 30, 2021. Our interest expense increased due to the increase in our average debt balance, which was offset by a decline in our composite cost of funds as compared to the prior year. Due to the rising interest rate environment, we expect our interest expense will increase as our average debt balance outstanding and our composite cost of funds each increase in the future.

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Depreciation expense

We recorded $470.6 million in depreciation expense of flight equipment for the six months ended June 30, 2022 compared to $426.8 million for the six months ended June 30, 2021. The increase in depreciation expense for the six months ended June 30, 2022, compared to the six months ended June 30, 2021, is primarily attributable to the growth of our fleet during the last twelve months. We expect our depreciation expense to increase as we continue to add aircraft to our fleet.

Write-off of Russian fleet

As further described above under “Impact of Russia-Ukraine Conflict”, in response to the sanctions against certain industry sectors and parties in Russia, in March 2022 we terminated all of our leasing activities in Russia, including 24 aircraft in our owned fleet and eight aircraft in our managed fleet. As of August 4, 2022, 21 aircraft in our owned fleet and six aircraft in our managed fleet remain in Russia. The operators of these aircraft have continued to fly most of the aircraft notwithstanding the termination of leasing activities and our repeated demands for the return of the assets. While we or the applicable managed platform maintain title to the 21 aircraft, we determined that it is unlikely we or they will regain possession of the aircraft that have not been returned and that remain in Russia. As such, during the six months ended June 30, 2022, we recorded a write-off of our interests in our owned and managed fleet that remain in Russia, totaling approximately $802.4 million. We did not have any losses from asset write-offs for the three months ended June 30, 2022. In June 2022, we submitted insurance claims to our insurers to recover our losses relating to these aircraft and are vigorously pursuing all available insurance claims.

Stock-based compensation

We recorded stock-based compensation expense of $4.0 million for the six months ended June 30, 2022 compared to stock-based compensation expense of $12.1 million for the six months ended June 30, 2021. The decrease in stock-based compensation relates to reductions in the underlying vesting estimates of certain book value RSUs as the performance criteria are no longer considered probable of being achieved.

Selling, general and administrative expenses

We recorded selling, general and administrative expenses of $71.3 million for the six months ended June 30, 2022 compared to $53.6 million for the six months ended June 30, 2021. The increase in selling, general and administrative expenses was primarily due to the increase in business activity, increased expenses related to insurance premiums and the transition of aircraft. During the six months ended June 30, 2022, we renewed our insurance which resulted in an annualized increase in our insurance premiums of approximately $16.0 million that we anticipate will increase our selling, general and administrative expenses in future periods. We expect an increase in operating costs due to higher inflation, increased insurance premiums, and certain geopolitical events, such as the Russia-Ukraine conflict. Selling, general and administrative expenses as a percentage of total revenue increased to 6.2% for the six months ended June 30, 2022 compared to 5.5% for the six months ended June 30, 2021.

Taxes

For the six months ended June 30, 2022 and June 30, 2021, we reported an effective tax rate exclusive of any discrete items of 19.8% and 18.6%, respectively. Due to discrete items related to the write-off of our Russian fleet, we reported an overall effective tax rate of 22.8% for the six months ended June 30, 2022.

Net income/(loss) attributable to common stockholders

For the six months ended June 30, 2022, we reported a net loss attributable to common stockholders of $373.6 million, or loss of $3.32 per diluted share, compared to a net income attributable to common stockholders of $165.8 million, or $1.45 per diluted share, for the six months ended June 30, 2021. Despite the growth of our fleet, our net income attributable to common stockholders and diluted earnings per share decreased due to the impact of the write-off of our Russian fleet.

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Adjusted net income before income taxes

For the six months ended June 30, 2022, we recorded adjusted net income before income taxes of $355.4 million, or $3.15 per adjusted diluted share, compared to an adjusted net income before income taxes of $243.1 million, or $2.13 per adjusted diluted share, for the six ended June 30, 2021. Our adjusted net income before income taxes and adjusted diluted earnings per share before income taxes increased for the six months ended June 30, 2022 as compared to 2021, primarily due to the continued growth of our fleet and the increase in revenues as discussed above.

Adjusted net income before income taxes and adjusted diluted earnings per share before income taxes are measures of financial and operational performance that are not defined by GAAP. See Note 1 under the “Results of Operations” table above for a discussion of adjusted net income before income taxes and adjusted diluted earnings per share before income taxes as non-GAAP measures and reconciliation of these measures to net income available to common stockholders.

Critical Accounting Estimates

Our critical accounting estimates reflecting management’s estimates and judgments are described in our Annual Report on Form 10-K for the year ended December 31, 2021. We have reviewed recently adopted accounting pronouncements and determined that the adoption of such pronouncements is not expected to have a material impact, if any, on our Consolidated Financial Statements. Accordingly, there have been no material changes to critical accounting estimates in the six months ended June 30, 2022.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk represents the risk of changes in the value of a financial instrument, caused by fluctuations in interest rates and foreign exchange rates. Changes in these factors could cause fluctuations in our results of operations and cash flows. We are exposed to the market risks described below.

Interest Rate Risk

The nature of our business exposes us to market risk arising from changes in interest rates. Changes, both increases and decreases, in our cost of borrowing, as reflected in our composite interest rate, directly impact our net income. Our lease rental stream is generally fixed over the life of our leases. While our floating-rate debt balances have decreased in recent years, we do have some exposure to changing interest rates as a result of our floating-rate debt. As of June 30, 2022 and December 31, 2021, we had $1.4 billion and $895.4 million in floating-rate debt outstanding, respectively. Additionally, we have outstanding preferred stock with an aggregate stated amount of $850.0 million that currently pays dividends at a fixed rate, but will alternate to paying dividends based on a floating rate or be reset to a new fixed rate based on the then-applicable floating rate, after five years from initial issuance. If interest rates increase, as they have been throughout 2022, we would be obligated to make higher interest payments to our lenders, and eventually, higher dividend payments to the holders of our preferred stock. If we incur significant fixed-rate debt in the future, increased interest rates prevailing in the market at the time of the incurrence of such debt would also increase our interest expense. If our composite interest rate was to increase by 1.0%, we would expect to incur additional interest expense on our existing indebtedness of approximately $14.1 million and $9.0 million as of June 30, 2022 and December 31, 2021, respectively, each on an annualized basis, which would put downward pressure on our operating margins.

We also have interest rate risk on our forward lease placements. This is caused by us setting a fixed lease rate in advance of the delivery date of an aircraft. The delivery date is when a majority of the financing for an aircraft is arranged. We partially mitigate the risk of an increasing interest rate environment between the lease signing date and the delivery date of the aircraft by having interest rate adjusters in a majority of our forward lease contracts which would adjust the final lease rate upward if certain benchmark interest rates are higher at the time of delivery of the aircraft than at the lease signing date.

Foreign Exchange Rate Risk

We attempt to minimize currency and exchange risks by entering into aircraft purchase agreements and a majority of lease agreements and debt agreements with U.S. dollars as the designated payment currency. Thus, most of our revenue and expenses are denominated in U.S. dollars. Approximately 0.3% and 0.5% of our lease revenues were denominated in foreign currency as of June 30, 2022 and December 31, 2021, respectively. As our principal currency is the U.S. dollar, fluctuations in the U.S. dollar as compared to other major currencies should not have a significant impact on our future operating results.

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In December 2019, we issued C$400.0 million in aggregate principal amount of 2.625% notes due 2024. We effectively hedged our foreign currency exposure on this transaction through a cross-currency swap that converts the borrowing rate to a fixed 2.535% U.S. dollar denominated rate. See Note 8 of Notes to Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details on the fair value of the swap.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our filings under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission (“SEC”), and such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer (collectively, the “Certifying Officers”), as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives as the Company’s controls are designed to do, and management necessarily was required to apply its judgment in evaluating the risk related to controls and procedures.

We have evaluated, under the supervision and with the participation of management, including the Certifying Officers, the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, as of June 30, 2022. Based on that evaluation, our Certifying Officers have concluded that our disclosure controls and procedures were effective at June 30, 2022.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended June 30, 2022 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may be involved in litigation and claims incidental to the conduct of our business in the ordinary course. Our industry is also subject to scrutiny by government regulators, which could result in enforcement proceedings or litigation related to regulatory compliance matters. We are not presently a party to any enforcement proceedings or litigation related to regulatory compliance matters or material legal proceedings. We maintain insurance policies in amounts and with the coverage and deductibles we believe are adequate, based on the nature and risks of our business, historical experience and industry standards.

ITEM 1A. RISK FACTORS

There have been no material changes in our risk factors from those discussed under “Part I—Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2021 and under “Part II—Item 1A. Risk Factors,” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

On February 15, 2022, our Board of Directors authorized us to repurchase up to $150.0 million of outstanding shares of our Class A common stock (the “2022 Repurchase Program”). Repurchases under the 2022 Repurchase Program, which expired in April 2022 upon the repurchase of shares up to the authorized amount, could be made through open market purchases, privately negotiated transactions, tender offers, block purchases, structured or derivative transactions such as puts, calls, options, forwards, collars, accelerated share repurchase transactions (with or without collars), other equity contracts, or other methods of acquiring shares, in each case subject to market conditions and at such times as shall be permitted by applicable securities laws and determined by

40

management. Repurchases under the 2022 Repurchase Program could also be made pursuant to a plan adopted under Rule 10b5-1 promulgated under the Exchange Act.

The following table provides information about our purchases of our Class A common stock during the three months ended June 30, 2022:

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Approximate Dollar Value that May Yet Be Purchased Under the Plans or Programs (in thousands)
April 1-30, 2022	461,416	$	44.33	461,416	$	—
May 1-31, 2022	—	—		—	$	—
June 1-30, 2022	—	—		—	$	—
Total April 1, 2022 - June 30, 2022	461,416	$	44.33	461,416

The 2022 Repurchase Program terminated in April 2022 upon completion of the entire $150.0 million of outstanding shares authorized under the 2022 Repurchase Program.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	File No.	Exhibit	Filing Date
3.1	Restated Certificate of Incorporation of Air Lease Corporation	S-1	333-171734	3.1	January 14, 2011
3.2	Fourth Amended and Restated Bylaws of Air Lease Corporation	8-K	001-35121	3.1	March 27, 2018
3.3	Certificate of Designations with respect to the 6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, of Air Lease Corporation, dated March 4, 2019, filed with the Secretary of State of Delaware and effective on March 4, 2019.	8-A	001-35121	3.2	March 4, 2019
3.4	Certificate of Designations with respect to the 4.650% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, dated February 26, 2021, filed with the Secretary of State of Delaware and effective on February 26, 2021.	8-K	001-35121	3.1	March 2, 2021
3.5	Certificate of Designations with respect to the 4.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C, dated October 11, 2021, filed with the Secretary of State of Delaware and effective on October 11, 2021.	8-K	001-35121	3.1	October 13, 2021
4.1	Description of Capital Stock	10-Q	001-35121	4.1	November 4, 2021

41

		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	File No.	Exhibit	Filing Date
10.1	Seventh Amendment and Extension Agreement, dated April 26, 2022, to the Second Amended and Restated Credit Agreement, dated as of May 5, 2014 among Air Lease Corporation, as Borrower, the several lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent.	8-K	001-35121	10.1	April 27, 2022
10.2	Lender Extension Supplement, dated June 3, 2022, to the Second Amended and Restated Credit Agreement, dated as of May 5, 2014, among Air Lease Corporation, as Borrower, the several lenders from time to time parties thereto, and JP Morgan Chase Bank, N.A., as Administrative Agent.				Filed herewith
10.3	New Lender Supplement, dated June 27, 2022, to the Second Amended and Restated Credit Agreement, dated as of May 5, 2014, among Air Lease Corporation, as Borrower, the several lenders from time to time parties thereto, and JP Morgan Chase Bank, N.A., as Administrative Agent.				Filed herewith
10.4†	Amendment No. 37 to A320 NEO Family Purchase Agreement, dated June 16, 2022, by and between Air Lease Corporation and Airbus S.A.S.				Filed herewith
10.5	Severance and Release Agreement, dated April 21, 2022, by and between Air Lease Corporation and Jie Chen.				Filed herewith
31.1	Certification of the Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				Filed herewith
31.2	Certification of the Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				Filed herewith
32.1	Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				Furnished herewith
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				Furnished herewith
101.INS	XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase
104	The cover page from Air Lease Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, formatted in Inline XBRL and contained in Exhibit 101
†	The Company has omitted portions of the referenced exhibit pursuant to Item 601(b) of Regulation S-K because it (a) is not material and (b) is the type of information that the Company both customarily and actually treats as private and confidential.

42

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AIR LEASE CORPORATION
August 4, 2022	/s/ John L. Plueger
	John L. Plueger
	Chief Executive Officer and President
	(Principal Executive Officer)
August 4, 2022	/s/ Gregory B. Willis
	Gregory B. Willis
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

43

EX-10.2

Exhibit 10.2

EXECUTION VERSION

LENDER EXTENSION AGREEMENT SUPPLEMENT

SUPPLEMENT, dated as of June 3, 2022, to the Second Amended and Restated Credit Agreement, dated as of May 5, 2014, as amended by the First Amendment dated as of June 1, 2015, by the Second Amendment dated as of May 27, 2016, by the Third Amendment dated as of May 2, 2017, by the Fourth Amendment dated as of May 2, 2018, by the Fifth Amendment dated as of May 3, 2019, by the Sixth Amendment and Extension Agreement, dated as of April 29, 2021, by the Seventh Amendment and Extension Agreement, dated as of April 26, 2022 (the “Seventh Amendment and Extension Agreement”) and as further amended, supplemented or otherwise modified from time to time (the “Credit Agreement”) among AIR LEASE CORPORATION, a Delaware corporation (the “Borrower”), the several banks and other financial institutions or entities from time to time parties thereto (the “Lenders”), and JPMORGAN CHASE BANK, N.A., as administrative agent (the “Administrative Agent”).

W I T N E S S E T H:

WHEREAS, the Credit Agreement provides in Section 2.1(g) thereof that the Borrower may request to extend the Termination Date with respect to the Commitments and the Loans annually;

WHEREAS, pursuant to the Extension Request, dated as of April 25, 2022 by Arab Banking Corporation (B.S.C.), New York Branch (“Arab Banking Corporation”), Arab Banking Corporation requested 15 Business Days to notify the Borrower and the Administrative Agent of its desire to extend the maturity of its Commitment and Loans; and

WHEREAS, the undersigned has informed the Borrower that it desires to extend the Termination Date of its Commitments and Loans and the Borrower desires to consent to such extension;

NOW, THEREFORE, the undersigned hereby agrees as follows:

1.The undersigned agrees to be bound by the provisions of the Credit Agreement, and agrees that it shall, on the date this Supplement is accepted by the Borrower and the Administrative Agent, extend the Termination Date of its Commitments and Loans (such extended Termination Date to be May 5, 2026). As of the date hereof and after giving effect to the Seventh Amendment and Extension Agreement, Arab Banking Corporation has a Commitment of $125,000,000.

2.The undersigned (a) represents and warrants that it is legally authorized to enter into this Supplement; (b) confirms that it has received a copy of the Credit Agreement, together with copies of the financial statements most recently delivered pursuant to Sections 6.1(a) and (b) thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Supplement; (c) agrees that it has made and will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement or any instrument or document furnished pursuant hereto or thereto; (d) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement or any instrument or document furnished pursuant hereto or thereto as are delegated to the Administrative Agent by the terms thereof, together with such powers as are incidental thereto; and (e) agrees that it will be bound by the provisions of the Credit Agreement and will perform in accordance with its terms all the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender including, without limitation, if it is

organized under the laws of a jurisdiction outside the United States, its obligation pursuant to Section 2.15(e) of the Credit Agreement.

3.The undersigned hereby confirms and agrees that the Termination Date in respect of its Commitment is May 5, 2026.

4.This Supplement constitutes an Extension Agreement under the Credit Agreement.

5.The address for notices for the undersigned for the purposes of the Credit Agreement is as follows:

Arab Banking Corporation (B.S.C.), New York Branch

140 East 45th Street, 38th Floor

New York, NY 10017

6.Terms defined in the Credit Agreement shall have their defined meanings when used herein.

7.Any signature to this Supplement may be delivered by facsimile, electronic mail (including pdf), DocuSign or any electronic signature complying with the U.S. federal ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes to the fullest extent permitted by applicable law. For the avoidance of doubt, the foregoing also applies to any amendment, extension or renewal of this Supplement.

IN WITNESS WHEREOF, the undersigned has caused this Supplement to be executed and delivered by a duly authorized officer on the date first above written.

ARAB BANKING CORPORATION (B.S.C), NEW YORK BRANCH
By:	/s/ David Giacalone
	Name: David Giacalone
	Title: Chief Risk Officer
By:	/s/ Tony Berbari
	Name: Tony Berbari
	Title: General Manager

[Signature Page to ABC Lender Extension Agreement Supplement]

Accepted and agreed to as of

the date first written above:

AIR LEASE CORPORATION

By:	/s/ Gregory B. Willis
	Name: Gregory B. Willis
	Title: Executive Vice President and Chief Financial Officer

[Signature Page to ABC Lender Extension Agreement Supplement]

Accepted and agreed to as of

the date first written above:

JPMORGAN CHASE BANK, N.A. as Administrative Agent

By:	/s/ Cristina Caviness
	Name: Cristina Caviness
	Title: Executive Director

[Signature Page to ABC Lender Extension Agreement Supplement]

EX-10.3

Exhibit 10.3

EXECUTION VERSION

NEW LENDER SUPPLEMENT

SUPPLEMENT, dated as of June 27, 2022, to the Second Amended and Restated Credit Agreement, dated as of May 5, 2014, as amended by the First Amendment dated as of June 1, 2015, by the Second Amendment dated as of May 27, 2016, by the Third Amendment dated as of May 2, 2017, by the Fourth Amendment dated as of May 2, 2018, by the Fifth Amendment dated as of May 3, 2019, by the Sixth Amendment and Extension Agreement, dated as of April 29, 2021, by the Seventh Amendment and Extension Agreement, dated as of April 26, 2022 and as further amended, supplemented or otherwise modified from time to time (the “Credit Agreement”) among AIR LEASE CORPORATION, a Delaware corporation (the “Borrower”), the several banks and other financial institutions or entities from time to time parties thereto (the “Lenders”), and JPMORGAN CHASE BANK, N.A., as administrative agent (the “Administrative Agent”).

W I T N E S S E T H:

WHEREAS, the Credit Agreement provides in Section 2.1(c) thereof that any bank, financial institution or other entity may become a party to the Credit Agreement with the consent of the Borrower and the Administrative Agent (which consent of the Administrative Agent shall not be unreasonably withheld) by executing and delivering to the Borrower and the Administrative Agent a supplement to the Credit Agreement in substantially the form of this Supplement; and

WHEREAS, the undersigned now desires to become a party to the Credit Agreement;

NOW, THEREFORE, the undersigned hereby agrees as follows:

1.As of the Effective Date hereof, the undersigned agrees to be bound by the provisions of the Credit Agreement, and agrees that it shall, on the date this Supplement is accepted by the Borrower and the Administrative Agent (the “Effective Date”), become a Lender for all purposes of the Credit Agreement to the same extent as if originally a party thereto, with a Commitment of $122,497,414.

2.The undersigned (a) represents and warrants that it is legally authorized to enter into this Supplement; (b) confirms that it has received a copy of the Credit Agreement, together with copies of the financial statements most recently delivered pursuant to Sections 6.1(a) and (b) thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Supplement; (c) agrees that it has made and will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement or any instrument or document furnished pursuant hereto or thereto; (d) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement or any instrument or document furnished pursuant hereto or thereto as are delegated to the Administrative Agent by the terms thereof, together with such powers as are incidental thereto; and (e) agrees that it will be bound by the provisions of the Credit Agreement and will perform in accordance with its terms all the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender including, without limitation, if it is organized under the laws of a jurisdiction outside the United States, its obligation pursuant to Section 2.15(e) of the Credit Agreement.

OMM_US:80801674.2

3.The undersigned hereby confirms and agrees that the Termination Date in respect of its Commitment is May 5, 2026.

4.The address for notices for the undersigned for the purposes of the Credit Agreement is as follows:

The Huntington National Bank

200 Public Square, CM 235

Cleveland, OH 44114

Attention: Martin H. McGinty

Telephone: 216-515-6797

5.Terms defined in the Credit Agreement shall have their defined meanings when used herein.

6.Any signature to this Supplement may be delivered by facsimile, electronic mail (including pdf), DocuSign or any electronic signature complying with the U.S. federal ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes to the fullest extent permitted by applicable law. For the avoidance of doubt, the foregoing also applies to any amendment, extension or renewal of this Supplement.

[Signature Page to Huntington New Lender Supplement]

IN WITNESS WHEREOF, the undersigned has caused this Supplement to be executed and delivered by a duly authorized officer on the date first above written.

THE HUNTINGTON NATIONAL BANK
By:	/s/ Martin H. McGinty
	Name: Martin H. McGinty
	Title: Director

[Signature Page to Huntington New Lender Supplement]

Accepted and agreed to as of

the date first written above:

AIR LEASE CORPORATION

By:	/s/ Gregory B. Willis
	Name: Gregory B. Willis
	Title: Executive Vice President and Chief Financial Officer

[Signature Page to Huntington New Lender Supplement]

Accepted and agreed to as of

the date first written above:

JPMORGAN CHASE BANK, N.A. as Administrative Agent

By:	/s/ Cristina Caviness
	Name: Cristina Caviness
	Title: Executive Director

[Signature Page to Huntington New Lender Supplement]

EX-10.4

EXHIBIT 10.4

CERTAIN IDENTIFIED INFORMATION MARKED BY [*] HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) THE TYPE OF INFORMATION THAT THE REGISTRANT BOTH CUSTOMARILY AND ACTUALLY TREATS AS PRIVATE AND CONFIDENTIAL.

AMENDMENT N°37

TO THE

A320 NEO FAMILY PURCHASE AGREEMENT

BETWEEN

AIRBUS S.A.S.

as Seller

and

AIR LEASE CORPORATION

as Buyer

Amendment Nº37 to the ALC A320 NEO Family PA
Ref. CLC-CT2202513	Page 1/7

AMENDMENT N°37 TO THE

A320 NEO FAMILY PURCHASE AGREEMENT

This amendment N°37 (the “Amendment N°37”) dated 16 June 2022 is made

BETWEEN:

AIRBUS S.A.S.,a société par actions simplifiée, created and existing under French law having its registered office at 2 Rond-Point Emile Dewoitine, 31707 Blagnac-Cedex, France and registered with the Toulouse Registre du Commerce under number RCS Toulouse 383 474 814 (the "Seller"),

and

AIR LEASE CORPORATION, a corporation organised and existing under the laws of the State of Delaware, U.S.A., having its principal place of business at 2000 Avenue of the Stars, Suite 1000N, Los Angeles, California 90067, U.S.A. (the “Buyer”).

The Buyer and the Seller together are referred to collectively as the “Parties”, and individually as a “Party”.

WHEREAS:

A.On 10 May 2012, the Buyer and the Seller have signed a purchase agreement with reference CLC-CT1103377 for the manufacture and sale by the Seller and purchase by the Buyer of thirty-six (36) firm A320 NEO Family aircraft hereinafter together with its Exhibits and Letter Agreements referred to as the “PurchaseAgreement”.

B.On 28 December 2012, the Buyer and the Seller entered into Amendment N°1 to the Purchase Agreement for the manufacture and sale by the Seller and purchase by the Buyer of fourteen (14) incremental A320 NEO Family aircraft.

C. On 14 July 2014, the Seller and the Buyer entered into Amendment N°2 to the Purchase Agreement in order to, among other things, [*].

D.On 14 July 2014, the Buyer and the Seller entered into Amendment N°3 to the Purchase Agreement for the manufacture and sale by the Seller and purchase by the Buyer of sixty (60) incremental A320 NEO Family aircraft.

E.On 10 October 2014, the Buyer and the Seller entered into Amendment N°4 to the Purchase Agreement for [*].

F.On 03 March 2015, the Buyer and the Seller entered into Amendment N°5 to the Purchase Agreement for the cancellation of sixty (60) Amendment 3 NEO Aircraft and for the manufacture and sale by the Seller and purchase by the Buyer of ninety (90) incremental A321 NEO Family aircraft.

G.On 18 March 2015, the Buyer and the Seller entered into Amendment N°6 to the Purchase Agreement in order to [*].

H.On 09 November 2015, the Buyer and the Seller entered into Amendment N°7 to the Purchase Agreement in order to [*].

I.On 08 January 2016, the Buyer and the Seller entered into Amendment N°8 to the Purchase Agreement in order to [*].

J.On 04 April 2016, the Buyer and the Seller entered into Amendment N°9 to the Purchase Agreement in order to [*].

K.On 12 April 2016, the Buyer and the Seller entered into Amendment N°10 to the Purchase Agreement in order to [*].

Amendment Nº37 to the ALC A320 NEO Family PA
Ref. CLC-CT2202513	Page 2/7

L.On 02 June 2016, the Buyer and the Seller entered into Amendment N°11 to the Purchase Agreement in order to [*].

M.On 17 August 2016, the Buyer and the Seller entered into Amendment N°12 to the Purchase Agreement in order to, among other things, [*].

N.On 20 December 2016, the Buyer and the Seller entered into Amendment N°13 to the Purchase Agreement in order to [*].

O.On 03 March 2017, the Buyer and the Seller entered into Amendment N°14 to the Purchase Agreement in order to, among other things, [*].

P.On 10 April 2017, the Buyer and the Seller entered into Amendment N°15 to the Purchase Agreement in order to, among other things, [*].

Q.On 19 June 2017, the Buyer and the Seller entered into Amendment N°16 to the Purchase Agreement in order to [*].

R.On 19 June 2017, the Buyer and the Seller entered into Amendment N°17 to the Purchase Agreement in order to provide for the manufacture and sale of twelve (12) incremental A320 NEO Family aircraft.

S.On 12 July 2017, the Buyer and the Seller entered into Amendment N°18 to the Purchase Agreement in order to amend certain terms of Amendment N°16.

T.On 31 July 2017, the Buyer and the Seller entered into Amendment N°19 to the Purchase Agreement in order to [*].

U.On 29 September 2017, the Buyer and the Seller entered into Amendment N°20 to the Purchase Agreement in order to [*].

V.On 27 December 2017, the Buyer and the Seller entered into Amendment N°21 to the Purchase Agreement in order to provide for the manufacture and sale of six (6) incremental A320 NEO Family Aircraft.

W.On 16 February 2018, the Buyer and the Seller entered into Amendment N°22 to the Purchase Agreement in order to, among other things, [*].

X.On 31 December 2018, the Buyer and the Seller entered into Amendment N°23 to the Purchase Agreement in order to, among other things, [*].

Y.On 18 October 2019, the Buyer and the Seller entered into Amendment N°24 to the Purchase Agreement in order to [*].

Z.On 20 December 2019, the Buyer and the Seller entered into Amendment N°25 to the Purchase Agreement in order to cover (i) the manufacture and sale by the Seller and purchase by the Buyer of twenty-five (25) incremental A321 NEO Aircraft; (ii) the manufacture and sale by the Seller and purchase by the Buyer of twenty-seven (27) A321XLR Aircraft; and (iii) [*].

AA.On 07 April 2020, the Buyer and the Seller entered into Amendment N°26 to the Purchase Agreement in order to, among other things, [*].

AB.On 31 August 2020, the Buyer and the Seller entered into Amendment N°27 to the Purchase Agreement in order to, among other things, [*].

AC.On 22 December 2020, the Buyer and the Seller entered into Amendment N°28 to the Purchase Agreement in order to, among other things, [*].

AD.On 24 December 2020, the Buyer and the Seller entered into Amendment N°29 to the Purchase Agreement in order to, among other things, [*].

Amendment Nº37 to the ALC A320 NEO Family PA
Ref. CLC-CT2202513	Page 3/7

AE.On 28 April 2021, the Buyer and the Seller entered into Amendment N°30 to the Purchase Agreement in order to, among other things, [*].

AF.On 03 June 2021, the Buyer and the Seller entered into Amendment N°31 to the Purchase Agreement in order to, among other things, provide for the manufacture and sale by the Seller and purchase by the Buyer of one (1) incremental A321 NEO Aircraft.

AG.On 31 July 2021, the Buyer and the Seller entered into Amendment N°32 to the Purchase Agreement in order to, among other things, [*].

AH.On 20 December 2021, the Buyer and the Seller entered into Amendment N°33 to the Purchase Agreement in order to, among other things, [*].

AI.On 20 December 2021, the Buyer and the Seller entered into Amendment N°34 to the Purchase Agreement in order to, among other things [*].

AJ.On 03 February 2022, the Buyer and the Seller entered into Amendment N°35 to the Purchase Agreement in order to, among other things, [*].

AK.On 25 March 2022, the Buyer and the Seller entered into Amendment N°36 to the Purchase Agreement in order to, among other things, [*].

The PurchaseAgreement as amended and supplemented pursuant to the foregoing shall be referred to as the “Agreement”.

AL. The Parties now wish to enter into this Amendment N°37 in order to, among other things, [*] subject to the terms and conditions set out herein.    

The terms “herein”, “hereof” and “hereunder” and words of similar import refer to this Amendment N°37. Capitalized terms used herein and not otherwise defined herein will have the meanings assigned thereto in the Agreement.

NOW IT IS HEREBY AGREED AS FOLLOWS:

Amendment Nº37 to the ALC A320 NEO Family PA
Ref. CLC-CT2202513	Page 4/7

1[*]

2[*]

3[*]

4INCONSISTENCY AND CONFIDENTIALITY

4.1In the event of any inconsistency between the terms and conditions of the Agreement and those of this Amendment N°37, the latter shall prevail to the extent of such inconsistency, whereas the part of the Agreement not concerned by such inconsistency shall remain in full force and effect.

4.2This Amendment N°37 reflects the understandings, commitments, agreements, representations and negotiations related to the matters set forth herein whatsoever, oral and written, and may not be varied except by an instrument in writing of even date herewith or subsequent hereto executed by the duly authorised representatives of both Parties.

4.3This Amendment N°37 shall be treated by both Parties as confidential and shall not be released in whole or in part to any third party without the prior consent of the other Party except as may be required by law, or to professional advisors for the implementation hereof.

5COUNTERPARTS

This Amendment N°37 may be executed by the Parties in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument.

6LAW AND JURISDICTION

This Amendment N°37 will be governed by and construed and the performance thereof will be determined in accordance with the laws of the State of New York, without giving effect to its conflicts of laws provisions that would result in the application of the law of any other jurisdiction.

The other provisions of Clause 22.6 of the Agreement shall apply to this Amendment N°37 as if the same were set out in full herein, mutatis mutandis.

Amendment Nº37 to the ALC A320 NEO Family PA
Ref. CLC-CT2202513	Page 5/7

IN WITNESS WHEREOF this Amendment N°37 was entered into the day and year first above written.

For and on behalf of	For and on behalf of
AIR LEASE CORPORATION	AIRBUS S.A.S.
By: /s/ Grant Levy	By: /s/ Benoît de Saint-Exupéry
Its: Executive Vice President	Its: Senior Vice President, Contracts

Amendment Nº37 to the ALC A320 NEO Family PA
Ref. CLC-CT2202513	Page 6/7

APPENDIX 1

DELIVERY SCHEDULE

[*]

Amendment Nº37 to the ALC A320 NEO Family PA
Ref. CLC-CT2202513	Page 7/7

LETTER AGREEMENT N° 1

AIR LEASE CORPORATION

2000 Avenue of the Stars, Suite 1000N

Los Angeles, California 90067, U.S.A.

June 16 , 2022

Subject : SPECIFIC PROVISIONS

AIR LEASE CORPORATION (the “Buyer") and AIRBUS S.A.S. (the “Seller") have entered into an Amendment N°37 dated even date herewith (the “Amendment”) to the A320 NEO Family Purchase Agreement dated as of May 10, 2012 (the “Agreement”), [*]. The Buyer and the Seller have agreed to set forth in this Letter Agreement N°1 to the Amendment (the “Letter Agreement”) certain additional terms and conditions regarding [*].

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the Agreement and the Amendment.

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, non-severable part of the Amendment, that the provisions of the Amendment are hereby incorporated herein by reference, and that if the Agreement, the Amendment and this Letter Agreement have specific provisions which are inconsistent, the specific provisions contained in this Letter Agreement shall govern.

Amendment Nº37 to the ALC A320 NEO Family PA – Letter Agreement N°1
Ref. CLC-CT2202513	Page 1/3

LETTER AGREEMENT N° 1

1[*]

2ASSIGNMENT

The provisions of Clause 21 of the Agreement shall apply to this Letter Agreement as if the same were set out in full herein, mutatis mutandis.

3LAW AND JURISDICTION

This Letter Agreement will be governed by and construed and the performance thereof will be determined in accordance with the laws of the State of New York, without giving effect to its conflicts of laws provisions that would result in the application of the law of any other jurisdiction.

The other provisions of Clause 22.6 of the Purchase Agreement shall apply to this Letter Agreement as if the same were set out in full herein, mutatis mutandis.

Amendment Nº37 to the ALC A320 NEO Family PA – Letter Agreement N°1
Ref. CLC-CT2202513	Page 2/3

LETTER AGREEMENT N° 1

If the foregoing correctly sets forth our understanding, please execute two (2) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

For and on behalf of	For and on behalf of
AIR LEASE CORPORATION	AIRBUS S.A.S.
By: /s/ Grant Levy	By: /s/ Benoît de Saint-Exupéry
Its: Executive Vice President	Its: Senior Vice President, Contracts

Amendment Nº37 to the ALC A320 NEO Family PA – Letter Agreement N°1
Ref. CLC-CT2202513	Page 3/3

EX-10.5

Exhibit 10.5

SEVERANCE AND RELEASE AGREEMENT

    This Severance and Release Agreement (“Agreement”) is entered into effective as of April 21, 2022, between Air Lease Corporation and all affiliated entities, as well as all individual officers, directors, employees, and owners (collectively, “Company”), and Jie Chen, an individual (“Executive”) (“Company” and “Executive” are together referred to as the “Parties”).

1.Voluntary Resignation. Executive understands and agrees that:

a.his employment with the Company will end on June 30, 2022, as a “voluntary resignation” (remote work permitted);”

b. his employment with Air Lease Corporation Hong Kong Limited (“ALC HK”) will end on June 30, 2022, as a “voluntary resignation” and the Employment Agreement dated June 6, 2019 between ALC HK and Executive (“HK Employment Agreement”) will be terminated;

c.he will resign all director and officer positions in the Company and/or its subsidiaries, including for ALC HK and ALC Hong Kong Leasing Limited no later than June 30, 2022; and

d.he will resign as the legal representative of each of ALC Tianrui (Tianjin) Company Limited and ALC Tiandao (Tianjin) Company Limited effective June 30, 2022.

2.Regular Company Compensation. Executive will continue to receive his base salary owed for his services to the Company, per current payment practice, through June 30, 2022, together with any accrued vacation pay, on June 30, 2022.

3.Regular ALC HK Compensation. Executive will continue receive his base salary owed for his services under his HK Employment Agreement, per current payment practice, through June 30, 2022, on June 30, 2022.

4.Insurance. For all of Executive’s existing U.S. health related policies and benefits, the Company will pay all of Executive’s COBRA premium insurance payments through June 30, 2023. Beginning July 1, 2023, Executive may elect continued coverage through COBRA and the Company will provide all the necessary documentation for that purpose.

5.Severance. Executive acknowledges that the Company will provide “Severance” as detailed below. The Severance is in consideration of Executive’s execution of this Agreement and the performance of the terms and conditions contained herein. Executive acknowledges that he is not entitled otherwise to Severance. Executive acknowledges that he is not entitled to any other salary, wages, commissions, bonuses, equity rights, benefits, insurance, or other compensation from the Company unless specifically set forth in this Agreement.

a.The Severance will consist of the following:

i.On July 1, 2022, a cash payment of $3,823,000, less legally required deductions, which payment will be reflected on an IRS form W-2 for calendar year 2022.

ii.On June 30, 2022, all of Executive’s outstanding and unvested restricted stock units (“RSUs”) granted by the Company consisting of 37,596 RSUs, all of which will be deemed fully vested at target. A number of shares of the Company’s Class A common stock equal to the sum of the RSUs shall be delivered to Executive, less the number of such shares required to satisfy required deductions, which payment will be reflected on an IRS form W-2 for calendar year 2022. On June 30, 2022, the Company will

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notify Fidelity, the plan administrator, to release such unrestricted shares of the Company’s Class A common stock, to the Executive’s account at Fidelity.

iii.At Executive’s election, up to four (4) round trip business class air tickets for his personal use or his immediate family between Los Angeles and Hong Kong/China, such tickets to be issued between July 1, 2022 and December 31, 2022, it being agreed and acknowledged that to the extent Executive avails himself of such air tickets, he will be subject to income tax on the value of such tickets, which will be reflected on an IRS form W-2 for calendar year 2022.

iv.At Executive’s election, the use of Executive’s current Hong Kong apartment through August 2022, it being agreed and acknowledged that, to the extent that Executive avails himself of such use, he will be taxed on the rental value and utilities/expenses related to the his occupancy, charged on a per diem basis, from and after June 30, 2022 through his date of departure, which will be reflected on an IRS form W-2 for calendar year 2022.

6.Tax Equalization. The attached Tax Equalization Understanding between the Company and Executive remains in effect following termination of Executive’s employment with the Company and ALC HK and shall be and remain applicable to any open tax years, including for taxes incurred in 2021 and 2022. The Company will retain the services of PricewaterhouseCoopers at the Company’s expense to assist Executive with his tax obligations through the 2022 tax year under Hong Kong and US federal and state tax law upon the same terms and conditions as provided in the Tax Equalization Understanding.

7.Release. Except for the Severance to be made by the under this Agreement (including the Tax Equalization Understanding), to the broadest extent permitted by law, Executive hereby fully and finally releases, acquits and forever discharges the Company and all of its subsidiaries and each of those entities’ stockholders, members, managers, directors, officers, employees, attorneys, insurers, plan administrators, successors, and assigns (collectively “Releasees”) from any and all past, current, and future claims, demands, obligations, liabilities, actions, costs, debts, damages, losses, and causes of action of every kind or nature, whether known or unknown, asserted or un-asserted, suspected or unsuspected, which have existed, now exist, or may hereafter exist and which are in any way connected with, or arise out of, Executive’s employment with, compensation by, or termination from the Company (collectively, “Claims”), including, but not limited to, claims based on, or arising out of, any alleged harassment, discrimination of any kind, including disability, and/or retaliation in violation of state or federal law; any claims for failure to prevent harassment, discrimination, and/or retaliation; all claims of violation of public policy, including wrongful and/or constructive termination; all claims based in tort such as assault, battery, and sexual battery; invasion of privacy; all claims based on breach of contract, whether written or oral, express or implied, and any covenant of good faith and fair dealing; claims for unpaid wages, vacation pay, meal and rest break violations, business expenses, other employment benefits, and associated penalties; claims for failure to engage in the interactive process, failure to provide reasonable accommodation, and/or wrongful denial/interference with any leave of absence; claims for unlawful or unfair business practices; claims for emotional distress; and claims brought under the Civil Rights Acts of 1964 and 1991, Fair Labor Standards Act, Age Discrimination in Employment Act of 1967, Americans with Disabilities Act, Family Medical Leave Act, Older Workers’ Benefit Protection Act, Uniformed Services Employment and Reemployment Rights Act of 1994, Employee Retirement Income Security Act of 1974, Rehabilitation Act of 1973; the U.S. and California Constitutions; California’s Fair Employment and Housing Act, California Family Rights Act, California

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Labor Code, Government, and Business & Professions Codes; and California Wage Orders, and any amendment to these statutes, and any other federal, state, or local statute, ordinance, or common law.

a.Executive specifically and expressly waives and releases all rights under the provisions of Section 1542 of the Civil Code of California, which provides as follows:

“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release, and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”

Thus, for the purpose of implementing a full, final, and complete release of the Company and the others released herein, Executive expressly understands and agrees that this release is intended to include in its effect, without limitation, Claims which Executive does not know of or suspect to exist in his favor and that this release extinguishes all such Claims. Executive further expressly understands and agrees that he may hereafter discover facts in addition to, or different from, those that he now believes to be true, but that notwithstanding the discovery of those facts, it is Executive’s intention hereby to fully, finally, completely, and forever release each and every Claim.

Executive acknowledges that the purpose of this Agreement is to resolve any and all potential issues or disputes between or among the Parties (and the others released herein) to the broadest extent permitted by law.

b.The above releases do not prohibit the following rights or claims: (1) claims for the enforcement of the Agreement itself (including the Tax Equalization Understanding); (2) claims by Executive for indemnification under California law or the HK Employment Agreement; and (3) any rights or claims of relief, whether specified above or not, that cannot be waived as a matter of law pursuant to federal, state, or local law. The Parties also understand that this Agreement does not prohibit Executive from filing an administrative charge of alleged employment discrimination under any anti-discrimination statute. Executive does, however, to the extent permitted by law, waive any right to monetary or other recovery should any administrative agency pursue any claims on Executive’s behalf arising out of or relating to Executive’s employment with the Company. The Parties agree that nothing in this Agreement will be deemed to prevent employees from accepting a whistleblower award from the SEC pursuant to Section 21F of the Securities Exchange Act of 1934.

8.Company Representation Regarding Executive. The Company represents and warrants to Executive that it is not aware, nor has received, notice of any facts or circumstances which would give rise to a claim against Executive, nor of facts or circumstances which, given notice, administrative action or the passage of time would constitute a claim against Executive.

9.Non-disparagement. Subject to Section 7(c) and 10(e), (i) Executive agrees not to make or imply any statement that is intended, or could reasonably be construed or interpreted, to disparage, defame, discredit, malign, or injure the business, professional, or personal reputation of the Company or any of the others released herein; and (ii) the Company agrees to direct, in writing, the current Executive Chairman, Chief Executive Officer and President, and the two Senior Vice Presidents, Marketing that have primary responsibility for Asia, not to make or imply any statement that is intended, or could reasonably be construed or interpreted, to disparage, defame, discredit, malign, or injure the business,

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professional, or personal reputation of Executive. Nothing in this section shall prevent any person from testifying truthfully if required to do so.

10.Confidentiality. Executive acknowledges that the Company has provided and made available to him certain information regarding its business, including, without limitation: various sales and marketing information; actual and potential customer and lead names, addresses, telephone numbers, and specific characteristics; sales reports; pending projects or proposals; methods of production; business plans and projections, including new product, facility or expansion plans; pricing information (such as price lists, quotation guides, previous or outstanding quotations, equipment prices, or billing information); estimating programs and methodology; the techniques used in, approaches, or results of any market research; advertising sources; employee salaries, contracts and wage information; financial information about the Company; customer information reports; and mailing plans and programs; whether written or verbal, or contained on computer hardware or software, disk, tape, microfiche or other media (“Information”). This Information is of substantial value and highly confidential, is not known to the general public, is the subject of reasonable efforts to maintain its secrecy, constitutes the professional and trade secrets of the Company, and has been provided and disclosed to Executive solely for use in connection with his employment. Executive agrees that he will:

a.regard and preserve the Information as highly confidential and the trade secrets of the Company;

b.not disclose, nor permit to be disclosed, any of the Information to any person or entity, absent written consent and approval from the Company;

c.not photocopy or duplicate, and will not permit any person to photocopy or duplicate, any of the Information without the Company’s written consent and approval;

d.not make any use of Information for his own direct or indirect benefit or the benefit of any person or entity other than the Company; and

e.return all Information to the Company immediately upon the execution of this Agreement.

11.Other Important Terms.

a.Executive understands that this Agreement and anything in it shall not be considered as any admission by the Company or any of the others released herein of any preexisting obligation or improper conduct whatsoever. Executive further understands that the Company and the others released herein deny any such obligations or improper conduct.

b.Executive affirmatively acknowledges that he has read this Agreement and understands its contents and that he is signing this Agreement voluntarily.

c.Executive acknowledges that the making, execution and delivery of this Agreement has not been induced by any promises, representations, statements, warranties, or agreements other than those expressed herein. Executive understands this Agreement supersedes all prior discussions and agreements between the Parties (and the others released herein), whether orally or in writing, except the Parties’ Agreement to Arbitrate executed by Executive on or about December 17, 2021 which is incorporated into this Agreement as though fully set forth and which covers any and all disputes concerning this Agreement. With that incorporation, and the Tax Equalization Understanding attached, this Agreement is a fully integrated document.

d.Executive understands and agrees that each of the Releasees released herein, other than the Company, is an express third-party beneficiary to and of this Agreement.

e.Notwithstanding any other provision in this Agreement, Executive is not prohibited or in any way restricted from reporting possible violations of law to a

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governmental agency or entity or receiving any whistleblower awards relating thereto and is not required to inform the Company if he makes such reports.

12.Agreement to Cooperate. Executive agrees to cooperate with the Company and its affiliates in relation to business issues, internal investigations and any regulatory, civil, criminal, or administrative proceedings which may involve events that occurred while Executive was employed by the Company or any of its affiliates. Such cooperation includes, but is not limited to, appearing for interviews by the Company at its request, providing any documents in Executive’s possession relating to the Company, and providing truthful testimony at interviews and depositions.

13.Injunctive Relief. The Parties agree that the Executive and the Company and the others released herein shall be entitled to preliminary injunctive relief or other equitable relief to prevent breaches of this Agreement in order to maintain the status quo pending an arbitration between the Parties or others released herein. The Parties further agree that in the event the Executive or the Company or any of the Releasees is required to initiate any arbitral proceeding to enforce the terms and conditions of this Agreement, the prevailing party shall be entitled to recover all reasonable attorney’s fees and costs associated with the action or proceeding to the extent permitted by law.

14.Governing Law. This Agreement is to be governed by the laws of the State of California without regard to any conflict of laws principles. The Parties agree that the proper venue for any arbitral proceeding arising out of this Agreement shall be in Los Angeles County.

15.ADEA. The Federal Age Discrimination in Employment Act (“ADEA”) requires that employers give certain notices to employees (including former employees), who are releasing age discrimination claims. Pursuant to the ADEA, Executive acknowledges that the Company has notified him of the following and he agrees that:

a.He may not waive or release any right or claim under the ADEA unless his waiver and release is knowing and voluntary and that he fully understands all of the terms of the release.

b.His waiver and release must be and is written in an understandable manner.

c.His waiver and release must and does specifically refer to the rights or claims arising under the ADEA.

d.He may not waive or release any of his ADEA rights or claims that arise after the date he signs this Agreement, and that this Agreement does not release any such later arising ADEA claims.

e.He may only waive, or release rights or claims in exchange for consideration in addition to anything of value to which he is already entitled, and that this Agreement provides him with such consideration.

f.He was advised in writing to consult with an attorney before executing this Agreement.

g.He has 21 calendar days to execute this Agreement, which expires on May 12, 2022. If he executes this Agreement prior to the expiration of 21 calendar days, he waives this right freely and voluntarily. Irrespective of when he signs this Agreement, he has seven calendar days to revoke his acceptance. Any revocation shall be in writing and hand delivered to the Company, attention Courtney McKeown, on or before the seventh calendar day following the date he executes this Agreement.

16.Return of Company Property. Executive will return any Company Property (including laptops) in his possession by June 30, 2022. Executive, however, may retain any Company provided mobile phones and iPad.

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17.References. The Company agrees to provide a neutral reference for Executive for any future employment and/or business opportunities, which shall contain dates of employment and titles and, to the extent previously disclosed by Executive, confirmation of compensation history.

Executive understands and acknowledges that he has had sufficient time to review this Agreement and to decide whether or not to enter into this Agreement. Having fully reviewed and understood this Agreement, Executive signs this Agreement voluntarily and of his own accord and without any undue pressure or influence.

Dated:	April 25, 2022	/s/ Jie Chen
				Jie Chen
Dated:	April 21, 2022	Air Lease Corporation
		By:	/s/ Courtney Mckeown
				Courtney Mckeown
				Senior Vice President, Human Resources

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Attachment A

Tax Equalization Understanding

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EX-31.1

EXHIBIT 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES‑OXLEY ACT OF 2002

I, John L. Plueger, certify that:

1.    I have reviewed this Quarterly Report on Form 10‑Q of Air Lease Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a‑15(f) and 15d‑15(f)), for the registrant and have:

a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 4, 2022

/s/ John L. Plueger

John L. Plueger

Chief Executive Officer and President

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES‑OXLEY ACT OF 2002

I, Gregory B. Willis, certify that:

1.    I have reviewed this Quarterly Report on Form 10‑Q of Air Lease Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a‑15(f) and 15d‑15(f)), for the registrant and have:

a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 4, 2022

/s/ Gregory B. Willis

Gregory B. Willis

Executive Vice President and Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES‑OXLEY ACT OF 2002

In connection with the Quarterly Report of Air Lease Corporation (the “Company”) on Form 10‑Q for the quarter ended June 30, 2022 (the “Report”), I, John L. Plueger, Chief Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes‑Oxley Act of 2002, that to the best of my knowledge:

(i)    The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 4, 2022

/s/ John L. Plueger

John L. Plueger

Chief Executive Officer and President

(Principal Executive Officer)

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES‑OXLEY ACT OF 2002

In connection with the Quarterly Report of Air Lease Corporation (the “Company”) on Form 10‑Q for the quarter ended June 30, 2022 (the “Report”), I, Gregory B. Willis, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes‑Oxley Act of 2002, that to the best of my knowledge:

(i)    The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 4, 2022

/s/ Gregory B. Willis

Gregory B. Willis

Executive Vice President and Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Aug. 03, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-35121
Entity Registrant Name	AIR LEASE CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-1840403
Entity Address, Address Line One	2000 Avenue of the Stars,
Entity Address, Address Line Two	Suite 1000N
Entity Address, City or Town	Los Angeles,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90067
City Area Code	310
Local Phone Number	553-0555
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		110,892,097
Entity Central Index Key	0001487712
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Class A Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Class A Common Stock
Trading Symbol	AL
Security Exchange Name	NYSE
6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A
Entity Information [Line Items]
Title of 12(b) Security	6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A
Trading Symbol	AL PRA
Security Exchange Name	NYSE

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents	$ 1,012,779	$ 1,086,500
Restricted cash	21,069	21,792
Flight equipment subject to operating leases	27,969,301	27,101,808
Less accumulated depreciation	(4,501,559)	(4,202,804)
Flight equipment subject to operating leases, net	23,467,742	22,899,004
Deposits on flight equipment purchases	1,618,687	1,508,892
Other assets	1,526,180	1,452,534
Total assets	27,646,457	26,968,722
Liabilities and Shareholders’ Equity
Accrued interest and other payables	628,526	611,757
Debt financing, net of discounts and issuance costs	18,336,075	17,022,480
Security deposits and maintenance reserves on flight equipment leases	1,186,442	1,173,831
Rentals received in advance	147,127	138,816
Deferred tax liability	908,653	1,013,270
Total liabilities	21,206,823	19,960,154
Shareholders’ Equity
Preferred stock,	106	106
Paid-in capital	3,244,282	3,399,245
Retained earnings	3,194,672	3,609,885
Accumulated other comprehensive loss	(535)	(1,808)
Total shareholders’ equity	6,439,634	7,008,568
Total liabilities and shareholders’ equity	27,646,457	26,968,722
Class A Common Stock
Shareholders’ Equity
Common stock	1,109	1,140
Class B Non‑Voting Common Stock
Shareholders’ Equity
Common stock	$ 0	$ 0

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Preferred stock, issued (in shares)	10,600,000
Preferred stock, outstanding (in shares)	10,600,000
Preferred stock, aggregate liquidation preference	$ 850,000
Noncumulative Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	50,000,000	50,000,000
Preferred stock, issued (in shares)	10,600,000	10,600,000
Preferred stock, outstanding (in shares)	10,600,000	10,600,000
Preferred stock, aggregate liquidation preference	$ 850,000	$ 850,000
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	500,000,000	500,000,000
Common stock, issued (in shares)	110,892,097	113,987,154
Common stock, outstanding (in shares)	110,892,097	113,987,154
Class B Non‑Voting Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	10,000,000	10,000,000
Common stock, issued (in shares)	0	0
Common stock, outstanding (in shares)	0	0

XML

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues [Abstract]
Rental of flight equipment	$ 545,271	$ 452,044	$ 1,111,825	$ 920,139
Aircraft sales, trading and other	$ 12,425	$ 39,833	$ 42,533	$ 46,565
Revenue from Contract with Customer, Product and Service [Extensible Enumeration]	Aircraft Sales, Trading And Other [Member]	Aircraft Sales, Trading And Other [Member]	Aircraft Sales, Trading And Other [Member]	Aircraft Sales, Trading And Other [Member]
Total revenues	$ 557,696	$ 491,877	$ 1,154,358	$ 966,704
Expenses
Interest	118,997	113,598	236,274	231,584
Amortization of debt discounts and issuance costs	13,413	12,513	26,610	24,538
Interest expense	132,410	126,111	262,884	256,122
Depreciation	235,284	217,817	470,591	426,782
Write-off of Russian fleet	0	0	802,352	0
Selling, general and administrative	38,512	26,687	71,277	53,601
Stock-based compensation expense	6,558	6,700	4,035	12,108
Total expenses	412,764	377,315	1,611,139	748,613
Income/(loss) before taxes	144,932	114,562	(456,781)	218,091
Income tax (expense)/benefit	(28,655)	(21,140)	104,065	(40,577)
Net income/(loss)	116,277	93,422	(352,716)	177,514
Preferred stock dividends	(10,425)	(7,835)	(20,850)	(11,679)
Net income/(loss) available to common stockholders, basic	105,852	85,587	(373,566)	165,835
Net income/(loss) available to common stockholders, diluted	105,852	85,587	(373,566)	165,835
Other comprehensive (loss)/income:
Foreign currency translation adjustment	9,349	(4,265)	6,330	(8,072)
Change in fair value of hedged transactions	(9,941)	3,976	(4,712)	6,197
Total tax (expense)/benefit on other comprehensive income/loss	127	62	(346)	401
Other comprehensive (loss)/income, net of tax	(465)	(227)	1,272	(1,474)
Total comprehensive income/(loss) attributable for common stockholders	$ 105,387	$ 85,360	$ (372,294)	$ 164,361
Earnings/(loss) per share of common stock:
Basic (in dollars per share)	$ 0.95	$ 0.75	$ (3.32)	$ 1.45
Diluted (in dollars per share)	$ 0.95	$ 0.75	$ (3.32)	$ 1.45
Weighted-average shares outstanding
Basic (in shares)	110,868,040	114,133,135	112,373,092	114,046,252
Diluted (in shares)	111,043,836	114,377,965	112,373,092	114,373,576
Dividends declared (in dollars per share)	$ 0.185	$ 0.16	$ 0.37	$ 0.32

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Class A Common Stock	Preferred Stock	Common Stock Class A Common Stock	Common Stock Class B Non‑Voting Common Stock	Paid‑in Capital	Retained Earnings	Retained Earnings Class A Common Stock	Accumulated Other Comprehensive Income/(Loss)
Beginning balance (in shares) at Dec. 31, 2020			10,000,000	113,852,896	0
Beginning balance at Dec. 31, 2020	$ 6,072,341		$ 100	$ 1,139	$ 0	$ 2,793,178	$ 3,277,599		$ 325
Increase (Decrease) in Shareholders' Equity
Issuance of preferred stock (in shares)			300,000
Issuance of preferred stock	295,449		$ 3			295,446
Issuance of common stock upon exercise of options and vesting of restricted stock units (in shares)				425,232
Issuance of common stock upon vesting of restricted stock units	1,441			$ 4		1,437
Stock-based compensation expense	5,408					5,408
Cash dividends		$ (18,259)						$ (18,259)
Preferred dividends	(3,844)						(3,844)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax	(1,247)								(1,247)
Tax withholdings on stock-based compensation (in shares)				(157,266)
Tax withholdings on stock-based compensation	(7,169)			$ (2)		(7,167)
Net income (loss)	84,092						84,092
Ending balance (in shares) at Mar. 31, 2021			10,300,000	114,120,862	0
Ending balance at Mar. 31, 2021	6,428,212		$ 103	$ 1,141	$ 0	3,088,302	3,339,588		(922)
Beginning balance (in shares) at Dec. 31, 2020			10,000,000	113,852,896	0
Beginning balance at Dec. 31, 2020	6,072,341		$ 100	$ 1,139	$ 0	2,793,178	3,277,599		325
Increase (Decrease) in Shareholders' Equity
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax	(1,474)
Net income (loss)	177,514
Ending balance (in shares) at Jun. 30, 2021			10,300,000	114,141,103	0
Ending balance at Jun. 30, 2021	6,501,715		$ 103	$ 1,141	$ 0	3,094,708	3,406,912		(1,149)
Beginning balance (in shares) at Mar. 31, 2021			10,300,000	114,120,862	0
Beginning balance at Mar. 31, 2021	6,428,212		$ 103	$ 1,141	$ 0	3,088,302	3,339,588		(922)
Increase (Decrease) in Shareholders' Equity
Issuance of preferred stock (in shares)			0
Issuance of preferred stock	(19)		$ 0			(19)
Issuance of common stock upon exercise of options and vesting of restricted stock units (in shares)				25,956
Issuance of common stock upon vesting of restricted stock units	0			$ 0		0
Stock-based compensation expense	6,700					6,700
Cash dividends		(18,263)						(18,263)
Preferred dividends	(7,835)						(7,835)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax	(227)								(227)
Tax withholdings on stock-based compensation (in shares)				(5,715)
Tax withholdings on stock-based compensation	(275)			$ 0		(275)
Net income (loss)	93,422						93,422
Ending balance (in shares) at Jun. 30, 2021			10,300,000	114,141,103	0
Ending balance at Jun. 30, 2021	6,501,715		$ 103	$ 1,141	$ 0	3,094,708	3,406,912		(1,149)
Beginning balance (in shares) at Dec. 31, 2021			10,600,000	113,987,154	0
Beginning balance at Dec. 31, 2021	7,008,568		$ 106	$ 1,140	$ 0	3,399,245	3,609,885		(1,808)
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon exercise of options and vesting of restricted stock units (in shares)				477,656
Issuance of common stock upon vesting of restricted stock units	2			$ 5		(3)
Common stock repurchased (in shares)				(2,959,458)
Common stock repurchased	(129,549)			$ (30)		(129,519)
Stock-based compensation expense	(2,523)					(2,523)
Cash dividends		$ (21,136)						(21,136)
Preferred dividends	(10,425)						(10,425)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax	1,738								1,738
Tax withholdings on stock-based compensation (in shares)				(188,093)
Tax withholdings on stock-based compensation	(8,097)			$ (2)		(8,095)
Net income (loss)	(468,993)						(468,993)
Ending balance (in shares) at Mar. 31, 2022			10,600,000	111,317,259	0
Ending balance at Mar. 31, 2022	6,369,585		$ 106	$ 1,113	$ 0	3,259,105	3,109,331		(70)
Beginning balance (in shares) at Dec. 31, 2021			10,600,000	113,987,154	0
Beginning balance at Dec. 31, 2021	7,008,568		$ 106	$ 1,140	$ 0	3,399,245	3,609,885		(1,808)
Increase (Decrease) in Shareholders' Equity
Common stock repurchased (in shares)		(3,420,874)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax	1,272
Net income (loss)	(352,716)
Ending balance (in shares) at Jun. 30, 2022			10,600,000	110,892,097	0
Ending balance at Jun. 30, 2022	6,439,634		$ 106	$ 1,109	$ 0	3,244,282	3,194,672		(535)
Beginning balance (in shares) at Mar. 31, 2022			10,600,000	111,317,259	0
Beginning balance at Mar. 31, 2022	6,369,585		$ 106	$ 1,113	$ 0	3,259,105	3,109,331		(70)
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon exercise of options and vesting of restricted stock units (in shares)				59,603
Issuance of common stock upon vesting of restricted stock units	0
Common stock repurchased (in shares)		(461,416)		(461,416)
Common stock repurchased	(20,454)			$ (4)		(20,450)
Stock-based compensation expense	6,558					6,558
Cash dividends		$ (20,511)						$ (20,511)
Preferred dividends	(10,425)						(10,425)
Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax	(465)								(465)
Tax withholdings on stock-based compensation (in shares)				(23,349)
Tax withholdings on stock-based compensation	(931)					(931)
Net income (loss)	116,277						116,277
Ending balance (in shares) at Jun. 30, 2022			10,600,000	110,892,097	0
Ending balance at Jun. 30, 2022	$ 6,439,634		$ 106	$ 1,109	$ 0	$ 3,244,282	$ 3,194,672		$ (535)

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.185	$ 0.185	$ 0.16	$ 0.16	$ 0.37	$ 0.32

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net (loss)/income	$ (352,716)	$ 177,514
Adjustments to reconcile net (loss)/income to net cash provided by operating activities:
Depreciation	470,591	426,782
Write-off of Russian fleet	802,352	0
Stock-based compensation expense	4,035	12,108
Deferred taxes	(104,963)	38,985
Amortization of debt discounts and issuance costs	26,610	24,538
Amortization of prepaid lease costs	23,355	22,267
Gain on aircraft sales, trading and other activity	(71,753)	(1,245)
Changes in operating assets and liabilities:
Other assets	(147,685)	(96,234)
Accrued interest and other payables	26,590	4,751
Rentals received in advance	12,423	(6,801)
Net cash provided by operating activities	688,839	602,665
Investing Activities
Acquisition of flight equipment under operating lease	(1,569,310)	(1,098,174)
Payments for deposits on flight equipment purchases	(345,643)	(202,938)
Proceeds from aircraft sales, trading and other activity	1,166	2,042
Acquisition of aircraft furnishings, equipment and other assets	(106,655)	(102,303)
Net cash used in investing activities	(2,020,442)	(1,401,373)
Financing Activities
Issuance of common stock upon exercise of options	0	1,439
Cash dividends paid on Class A common stock	(42,223)	(36,475)
Common shares repurchased	(150,000)	0
Net proceeds from preferred stock issuance	0	295,428
Cash dividends paid on preferred stock	(20,850)	(11,679)
Tax withholdings on stock-based compensation	(9,027)	(7,442)
Net change in unsecured revolving facilities	520,000	0
Proceeds from debt financings	1,497,615	2,574,089
Payments in reduction of debt financings	(718,687)	(2,576,841)
Debt issuance costs	(5,613)	(7,937)
Security deposits and maintenance reserve receipts	198,763	67,289
Security deposits and maintenance reserve disbursements	(12,819)	(24,170)
Net cash provided by financing activities	1,257,159	273,701
Net decrease in cash	(74,444)	(525,007)
Cash, cash equivalents and restricted cash at beginning of period	1,108,292	1,757,767
Cash, cash equivalents and restricted cash at end of period	1,033,848	1,232,760
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest, including capitalized interest of $19,127 and $26,116 at June 30, 2022 and 2021, respectively	254,349	262,949
Cash paid for income taxes	3,557	2,491
Supplemental Disclosure of Noncash Activities
Buyer furnished equipment, capitalized interest and deposits on flight equipment purchases applied to acquisition of flight equipment	343,794	449,486
Cash dividends declared, not yet paid	$ 20,511	$ 18,263

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Supplemental Disclosure of Cash Flow Information
Cash paid for interest, capitalized interest	$ 19,127	$ 26,116

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Company Background and Overview	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Company Background and Overview	Company Background and OverviewAir Lease Corporation (the “Company”, “ALC”, “we”, “our” or “us”) is a leading aircraft leasing company that was founded by aircraft leasing industry pioneer, Steven F. Udvar-Házy. The Company is principally engaged in purchasing the most modern, fuel-efficient, new technology commercial jet aircraft directly from aircraft manufacturers, such as The Boeing Company (“Boeing”) and Airbus S.A.S. (“Airbus”). The Company leases these aircraft to airlines throughout the world with the intention to generate attractive returns on equity. As of June 30, 2022, the Company owned 392 aircraft, managed 89 aircraft and had 430 aircraft on order with aircraft manufacturers. In addition to its leasing activities, the Company sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines and other investors. The Company also provides fleet management services to investors and owners of aircraft portfolios for a management fee.

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Basis of Preparation and Critical Accounting Policies

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Preparation and Critical Accounting Policies

Basis of Preparation and Critical Accounting Policies

The Company consolidates financial statements of all entities in which the Company has a controlling financial interest, including the accounts of any Variable Interest Entity in which the Company has a controlling financial interest and for which it is the primary beneficiary. All material intercompany balances are eliminated in consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

The accompanying unaudited Consolidated Financial Statements include all adjustments, consisting only of normal, recurring adjustments, which are in the opinion of management necessary to present fairly the Company’s financial position, results of operations and cash flows at June 30, 2022, and for all periods presented. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the operating results expected for the year ending December 31, 2022. These financial statements and related notes should be read in conjunction with the Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Reclassifications

Certain reclassifications have been made in the prior year’s consolidated financial statements to conform to the classifications in 2022.

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Debt Financing

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt Financing

Debt Financing

The Company’s consolidated debt as of June 30, 2022 and December 31, 2021 is summarized below:

	June 30, 2022		December 31, 2021
	(in thousands)
Unsecured
Senior notes	$	17,685,728	$	16,892,058
Term financings	190,325		167,000
Revolving credit facility	520,000		—
Total unsecured debt financing	18,396,053		17,059,058
Secured
Term financings	120,226		126,660
Export credit financing	14,973		18,301
Total secured debt financing	135,199		144,961
Total debt financing	18,531,252		17,204,019
Less: Debt discounts and issuance costs	(195,177)		(181,539)
Debt financing, net of discounts and issuance costs	$	18,336,075	$	17,022,480

Senior unsecured notes (including Medium-Term Note Program)

As of June 30, 2022, the Company had $17.7 billion in senior unsecured notes outstanding. As of December 31, 2021, the Company had $16.9 billion in senior unsecured notes outstanding.

During the six months ended June 30, 2022, the Company issued $1.5 billion in aggregate principal amount of senior unsecured notes comprised of (i) $750.0 million in aggregate principal amount of 2.20% Medium-Term Notes due 2027, and (ii) $750.0 million in aggregate principal amount of 2.875% Medium-Term Notes due 2032.

Unsecured revolving credit facility

As of June 30, 2022, the Company had $520.0 million outstanding under its unsecured revolving credit facility (the “Revolving Credit Facility”). As of December 31, 2021, the Company did not have any amounts outstanding under its Revolving Credit Facility. Borrowings under the Revolving Credit Facility are used to finance the Company’s working capital needs in the ordinary course of business and for other general corporate purposes.

In April 2022, the Company amended and extended its Revolving Credit Facility through an amendment that, among other things, extended the final maturity date from May 5, 2025 to May 5, 2026, increased the total revolving commitments to approximately $7.0 billion as of May 5, 2022 and replaced LIBOR with Term SOFR as the benchmark interest rate and made certain conforming changes related thereto. As of June 30, 2022, borrowings under the Revolving Credit Facility accrued interest at Adjusted Term SOFR (as defined in the Revolving Credit Facility) plus a margin of 1.05% per year. The Company is required to pay a facility fee of 0.20% per year in respect of total commitments under the Revolving Credit Facility. Interest rate and facility fees are subject to increases or decreases based on declines or improvements in the credit ratings for the Company’s debt.

In June 2022, the Company increased the aggregate facility capacity by an additional $122.5 million and also extended the maturity of $125.0 million in commitments to May 5, 2026. As of August 4, 2022, the Company had total revolving commitments of approximately $7.1 billion. Lenders held revolving commitments totaling approximately $6.7 billion that mature on May 5, 2026, commitments totaling $32.5 million that mature on May 5, 2025 and commitments totaling $375.0 million that mature on May 5, 2023.

Other debt financings

From time to time, the Company enters into other debt financings such as unsecured term financings and secured term financings, including export credit. As of June 30, 2022, the outstanding balance on other debt financings was $325.5 million and the Company had pledged three aircraft as collateral with a net book value of $217.1 million. As of December 31, 2021, the outstanding balance on other debt financings was $312.0 million and the Company had pledged three aircraft as collateral with a net book value of $222.2 million.

Maturities

Maturities of debt outstanding as of June 30, 2022 are as follows:

	(in thousands)
Years ending December 31,
2022	$	1,291,611
2023	2,566,329
2024	2,885,280
2025	2,404,761
2026	3,963,094
Thereafter	5,420,177
Total	$	18,531,252

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Flight equipment subject to operating lease

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Flight equipment subject to operating lease

Flight equipment subject to operating lease

The following table summarizes the activities for the Company’s flight equipment subject to operating lease for the six months ended June 30, 2022:

	(in thousands)
Net book value as of December 31, 2021	$	22,899,004
Additions	1,936,337
Depreciation	(470,591)
Transfers to net investments in sales-type leases	(105,991)
Write-off of Russian fleet	(791,017)
Net book value as of June 30, 2022	$	23,467,742
Accumulated depreciation as of June 30, 2022	$	(4,501,559)

Write-off of Russian fleet

In response to the sanctions against certain industry sectors and parties in Russia, in March 2022, the Company terminated all of its leasing activities in Russia, including 24 aircraft in its owned fleet. As of August 4, 2022, 21 aircraft previously included in the Company’s owned fleet remain in Russia. The operators of these aircraft have continued to fly most of the aircraft notwithstanding the termination of leasing activities and the Company’s repeated demands for the return of its assets. While the Company maintains title to the aircraft, the Company has determined that it is unlikely it will regain possession of the aircraft that have not been returned and that remain in Russia. As such, during the three months ended March 31, 2022, the Company recognized a loss from asset write-offs of its interests in owned aircraft that remain in Russia, totaling approximately $791.0 million. The Company did not have any losses from asset write-offs for the three months ended June 30, 2022. The 21 aircraft that remain in Russia were removed from the Company’s owned fleet count as of March 31, 2022. In June 2022, the Company submitted insurance claims to its insurers to recover its losses relating to these aircraft and is vigorously pursuing all available insurance claims. Collection, timing and amounts of any insurance recoveries is uncertain at this time.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Aircraft Acquisition

As of June 30, 2022, the Company had commitments to purchase 430 aircraft from Boeing and Airbus for delivery through 2028, with an estimated aggregate commitment of $27.6 billion.

The table is subject to change based on Airbus and Boeing delivery delays. As noted below, the Company expects delivery delays for some aircraft in its orderbook. The Company remains in discussions with Boeing and Airbus to determine the extent and duration of delivery delays; however, the Company is not yet able to determine the full impact of these delays.

	Estimated Delivery Years
Aircraft Type	2022	2023	2024	2025	2026	Thereafter	Total
Airbus A220-100/300	4	16	24	20	12	—	76
Airbus A320/321neo(1)	17	23	23	24	35	64	186
Airbus A330-900neo	6	6	4	—	—	—	16
Airbus A350-900/1000	1	3	3	—	—	—	7
Airbus A350F	—	—	—	—	2	5	7
Boeing 737-8/9 MAX	14	31	34	19	16	—	114
Boeing 787-9/10	3	7	8	6	—	—	24
Total(2)	45	86	96	69	65	69	430
(1) The Company’s Airbus A320/321neo aircraft orders include 26 long-range variants and 49 extra long-range variants.
(2) The table above reflects Airbus and Boeing aircraft delivery delays based on contractual documentation.

Pursuant to the Company’s purchase agreements with Boeing and Airbus, the Company agrees to contractual delivery dates for each aircraft ordered. These dates can change for a variety of reasons, however for the last several years, manufacturing delays have significantly impacted the planned purchases of the Company’s aircraft on order with Boeing and Airbus. The Company is currently experiencing delivery delays with both Boeing and Airbus aircraft. However, the most significant delivery delays pertain to the Company’s aircraft orders for Boeing 787 aircraft.

During 2020, Boeing began to experience manufacturing issues on its 787 aircraft, which resulted in significant aircraft delivery delays. Boeing halted 787 deliveries in May 2021 and has not indicated when they will resume. The Company has not received any 787s since the halting of the deliveries by Boeing. It is the Company’s understanding that, in July 2022, the FAA approved Boeing’s plan to inspect and repair 787 aircraft, which will allow deliveries to resume. However, the pace and the timing of deliveries of the aircraft for the remainder of this year and potentially beyond still remains uncertain.

The aircraft purchase commitments discussed above could also be impacted by cancellations. The Company’s purchase agreements with Boeing and Airbus generally provide each of the Company and the manufacturers with cancellation rights for delivery delays starting at one year after the original contractual delivery date, regardless of cause. In addition, the Company’s lease agreements generally provide each of the Company and the lessee with cancellation rights related to certain aircraft delivery delays that typically parallel the cancellation rights in the Company’s purchase agreements.

Commitments for the acquisition of these aircraft, calculated at an estimated aggregate purchase price (including adjustments for anticipated inflation) of approximately $27.6 billion as of June 30, 2022, are as follows:

Years ending December 31,
2022	$	3,082,573
2023	6,057,223
2024	6,223,538
2025	4,186,938
2026	3,641,767
Thereafter	4,433,109
Total	$	27,625,148

The Company has made non-refundable deposits on flight equipment purchases of $1.6 billion and $1.5 billion as of June 30, 2022 and December 31, 2021, respectively. If the Company is unable to satisfy its purchase commitments, the Company may be forced to forfeit its deposits and may also be exposed to breach of contract claims by its lessees as well as the manufacturers.

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Rental Income

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Rental Income

Rental Income

As of June 30, 2022, minimum future rentals on non-cancellable operating leases of flight equipment in the Company’s owned fleet, which have been delivered as of June 30, 2022 are as follows:

Years ending December 31,
2022 (excluding the six months ended June 30, 2022)	$	1,089,192
2023	2,093,379
2024	1,970,231
2025	1,823,512
2026	1,630,714
Thereafter	6,359,325
Total	$	14,966,353

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Earnings/(Loss) Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings/(Loss) Per Share

Earnings/(Loss) Per Share

Basic earnings/(loss) per share is computed by dividing net income/(loss) by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company’s two classes of common stock, Class A and Class B non-voting, have equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock. As of June 30, 2022, the Company did not have any Class B non-voting common stock outstanding.    

Diluted earnings per share takes into account the potential conversion of stock options, restricted stock units, and warrants using the treasury stock method and convertible notes using the if-converted method. Since the Company was in a loss position for the six months ended June 30, 2022, diluted net loss per share is the same as basic net loss per share for the period as the inclusion of all potential common shares outstanding would have been anti-dilutive. For the six months ended June 30, 2022, the Company excluded 301,279 potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. For the three months ended June 30, 2022, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. For the three and six months ended June 30, 2021, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. The Company excluded 978,036 and 1,085,311 shares related to restricted stock units for which the performance metric had yet to be achieved as of June 30, 2022 and 2021, respectively.

The following table sets forth the reconciliation of basic and diluted earnings/(loss) per share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in thousands, except share and per share)
Basic earnings/(loss) per share:
Numerator
Net income/(loss)	$	116,277	$	93,422	$	(352,716)	$	177,514
Preferred stock dividends	(10,425)		(7,835)		(20,850)		(11,679)
Net income/(loss) attributable to common stockholders	$	105,852	$	85,587	$	(373,566)	$	165,835
Denominator
Weighted-average shares outstanding	110,868,040		114,133,135		112,373,092		114,046,252
Basic earnings/(loss) per share	$	0.95	$	0.75	$	(3.32)	$	1.45
Diluted earnings/(loss) per share:
Numerator
Net income/(loss)	$	116,277	$	93,422	$	(352,716)	$	177,514
Preferred stock dividends	(10,425)		(7,835)		(20,850)		(11,679)
Net income/(loss) attributable to common stockholders	$	105,852	$	85,587	$	(373,566)	$	165,835
Denominator
Number of shares used in basic computation	110,868,040		114,133,135		112,373,092		114,046,252
Weighted-average effect of dilutive securities	175,796		244,830		—		327,324
Number of shares used in per share computation	111,043,836		114,377,965		112,373,092		114,373,576
Diluted earnings/(loss) per share	$	0.95	$	0.75	$	(3.32)	$	1.45

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Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis

The Company has a cross-currency swap related to its Canadian dollar Medium-Term Notes which were issued in December 2019. The fair value of the swap as a foreign currency exchange derivative is categorized as a Level 2 measurement in the fair value hierarchy and is measured on a recurring basis. As of June 30, 2022 and December 31, 2021, the estimated fair value of the foreign currency exchange derivative asset was $9.4 million and $14.1 million, respectively.

Financial Instruments Not Measured at Fair Values

The fair value of debt financing is estimated based on the quoted market prices for the same or similar issues, or on the current rates offered to the Company for debt of the same remaining maturities, which would be categorized as a Level 2 measurement in the fair value hierarchy. The estimated fair value of debt financing as of June 30, 2022 was $17.2 billion compared to a book value of $18.5 billion. The estimated fair value of debt financing as of December 31, 2021 was $17.6 billion compared to a book value of $17.2 billion.

The following financial instruments are not measured at fair value on the Company’s Consolidated Balance Sheets at June 30, 2022, but require disclosure of their fair values: cash and cash equivalents and restricted cash. The estimated fair value of such instruments at June 30, 2022 and December 31, 2021 approximates their carrying value as reported on the Consolidated Balance Sheets. The fair value of all these instruments would be categorized as Level 1 in the fair value hierarchy.

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Shareholders' Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

The Company was authorized to issue 500,000,000 shares of Class A common stock, $0.01 par value, at June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021, the Company had 110,892,097 and 113,987,154 Class A common shares issued and outstanding, respectively. The Company was authorized to issue 10,000,000 shares of Class B common stock, $0.01 par value at June 30, 2022 and December 31, 2021. The Company did not have any shares of Class B non-voting common stock, $0.01 par value, issued or outstanding as of June 30, 2022 or December 31, 2021.

The Company was authorized to issue 50,000,000 shares of preferred stock, $0.01 par value, at June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021, the Company had 10.0 million shares of 6.15% Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $250.0 million ($25.00 per share), 300,000 shares of 4.65% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $300.0 million ($1,000 per share) and 300,000 shares of 4.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C (the “Series C Preferred Stock”), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $300.0 million ($1,000 per share).

The following table summarizes the Company’s preferred stock issued and outstanding as of June 30, 2022 (in thousands, except for share amounts and percentages):

	Shares Issued and Outstanding as of June 30, 2022	Carrying Value as of June 30, 2022		Issue Date	Dividend Rate in Effect at June 30, 2022		Next dividend rate reset date	Dividend rate after reset date
Series A	10,000,000	$	250,000	March 5, 2019	6.150	%	March 15, 2024	3M LIBOR plus 3.65%
Series B	300,000	300,000		March 2, 2021	4.650	%	June 15, 2026	5 Yr U.S. Treasury plus 4.076%
Series C	300,000	300,000		October 13, 2021	4.125	%	December 15, 2026	5 Yr U.S. Treasury plus 3.149%
Total Preferred Stock	10,600,000	$	850,000

During the six months ended June 30, 2022, the Company repurchased 3,420,874 shares of its Class A common stock under its previously announced stock repurchase program at an average purchase price of $43.85 per share, of which 461,416 shares of its Class A common stock were repurchased during the three months ended June 30, 2022 at an average purchase price of $44.33 per share. Such repurchases completed the repurchase of the entire $150.0 million of outstanding shares authorized under the Company’s stock repurchase program. The Company completed the share repurchase program in April 2022.

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Stock-based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

Stock-based Compensation

On May 7, 2014, the stockholders of the Company approved the Air Lease Corporation 2014 Equity Incentive Plan (the “2014 Plan”). Upon approval of the 2014 Plan, no new awards may be granted under the Amended and Restated 2010 Equity Incentive Plan (the “2010 Plan”). As of June 30, 2022, the number of stock options (“Stock Options”) and restricted stock units (“RSUs”) authorized under the 2014 Plan is approximately 4,216,707. The Company has issued RSUs with four different vesting criteria: those RSUs that vest based on the attainment of book-value goals, those RSUs that vest based on the attainment of Total Shareholder Return (“TSR”) goals, time based RSUs that vest ratably over a time period of three years and RSUs that cliff vest at the end of a one or two year period.

As of June 30, 2022, the Company had no outstanding Stock Options and no unrecognized compensation costs related to outstanding Stock Options. For the three and six months ended June 30, 2022 and 2021, there were no stock-based compensation expenses related to Stock Options.

The Company recorded $6.6 million and $6.7 million of stock-based compensation expense related to RSUs for the three months ended June 30, 2022 and 2021, respectively.

The Company recorded $4.0 million and $12.1 million of stock-based compensation expense related to RSUs for the six months ended June 30, 2022 and 2021, respectively. The decrease in stock-based compensation relates to reductions in the underlying vesting estimates of certain book value RSUs as the performance criteria are no longer considered probable of being achieved.

Restricted Stock Units

Compensation cost for RSUs is measured at the grant date based on fair value and recognized over the vesting period. The fair value of book value and time based RSUs is determined based on the closing market price of the Company’s Class A common stock on the date of grant, while the fair value of RSUs that vest based on the attainment of Total Shareholder Return (“TSR”) goals is determined at the grant date using a Monte Carlo simulation model. Included in the Monte Carlo simulation model were certain assumptions regarding a number of highly complex and subjective variables, such as expected volatility, risk-free interest rate and expected dividends. To appropriately value the award, the risk-free interest rate is estimated for the time period from the valuation date until the vesting date and the historical volatilities were estimated based on a historical timeframe equal to the time from the valuation date until the end date of the performance period.

During the six months ended June 30, 2022, the Company granted 652,016 RSUs of which 110,237 are TSR RSUs and 220,437 are book value RSUs. The following table summarizes the activities for the Company’s unvested RSUs for the six months ended June 30, 2022:

	Unvested Restricted Stock Units
	Number of Shares	Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2021	1,571,415	$	43.88
Granted	652,016	$	47.24
Vested	(542,060)	$	42.50
Forfeited/canceled	(162,177)	$	40.51
Unvested at June 30, 2022	1,519,194	$	45.88
Expected to vest after June 30, 2022	1,317,556	$	46.52

As of June 30, 2022, there was $40.3 million of unrecognized compensation expense related to unvested stock-based payments granted to employees. Total unrecognized compensation expense will be recognized over a weighted-average remaining period of 2.10 years.

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Aircraft Under Management

6 Months Ended

Jun. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Aircraft Under Management

Aircraft Under Management

As of June 30, 2022, the Company managed 89 aircraft across three aircraft management platforms. The Company managed 48 aircraft through its Thunderbolt platform, 35 aircraft through the Blackbird investment funds and six on behalf of other financial institutions.

The Company managed 35 aircraft on behalf of third-party investors, through two investment funds, Blackbird I and Blackbird II. These funds invest in commercial jet aircraft and lease them to airlines throughout the world. The Company provides management services to these funds for a fee. As of June 30, 2022, the Company's non-controlling interests in each fund were 9.5% and are accounted for under the equity method of accounting. The Company’s investments in these funds aggregated $64.2 million and $73.2 million as of June 30, 2022 and December 31, 2021, respectively, and are included in Other assets on the Consolidated Balance Sheets.

Additionally, the Company continues to manage aircraft that it sells through its Thunderbolt platform. The Thunderbolt platform facilitates the sale of mid-life aircraft to investors while allowing the Company to continue the management of these aircraft for a fee. As of June 30, 2022, the Company managed 48 aircraft across three separate transactions. The Company has non-controlling interests in two of these entities of approximately 5.0%, which are accounted for under the cost method of accounting. The Company’s total investment in aircraft sold through its Thunderbolt platform was $8.8 million and $9.3 million as of June 30, 2022 and December 31, 2021, respectively and is included in Other assets on the Consolidated Balance Sheets.

In response to the sanctions against certain industry sectors and parties in Russia, in March 2022 the Company terminated all of its leasing activities in Russia. Eight leases for aircraft in the Company’s managed fleet were also terminated. As of August 4, 2022, six aircraft previously included in the Company’s managed fleet remain in Russia. While the applicable managed platform maintains title to the aircraft, the Company has determined that it is unlikely they will regain possession of the aircraft that have not been returned and that remain in Russia. As a result, during the three months ended March 31, 2022, the Company recognized asset write-offs of $11.4 million related to its investments in the managed platforms that own such aircraft. During the three months ended June 30, 2022, the Company did not recognize any asset write-offs related to its investments in the managed platforms. The six aircraft that remain in Russia were removed from the Company’s managed fleet count as of March 31, 2022.

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Net Investment in Sales-type Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Net Investment in Sales-type Leases

Net Investment in Sales-type Leases

As of June 30, 2022, the Company had five A320-200 aircraft on lease to an airline with terms that meet the criteria of being classified as a sales-type lease.

Net investment in sales-type leases was included in Other assets in the Company’s Consolidated Balance Sheets based on the present value of fixed payments under the contract and the residual value of the underlying asset, discounted at the rate implicit in the lease. The Company’s investment in sales-type leases consisted of the following (in thousands):

	June 30, 2022
Future minimum lease payments to be received	$	121,360
Estimated residual values of leased flight equipment	45,844
Less: Unearned income	(26,113)
Net Investment in Sales-type Leases	$	141,091

As of June 30, 2022, future minimum lease payments to be received on sales-type leases were as follows:

	(in thousands)
Years ending December 31,
2022 (excluding the six months ended June 30, 2022)	$	6,150
2023	12,300
2024	12,300
2025	12,300
2026	12,300
Thereafter	66,010
Total	$	121,360

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Flight Equipment Held for Sale	6 Months Ended
	Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]
Flight Equipment Held for Sale	Flight Equipment Held for SaleAs of June 30, 2022, the Company had six aircraft, with a carrying value of $220.9 million, which were held for sale and included in Flight equipment subject to operating leases on the Consolidated Balance Sheets. The Company expects the sale of all six aircraft to be completed in 2022. The Company ceases recognition of depreciation expense once an aircraft is classified as held for sale. As of December 31, 2021, the Company did not have any flight equipment classified as held for sale.

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Subsequent Events

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On August 3, 2022, the Company’s board of directors approved quarterly dividends for the Company’s Class A common stock and Series A, B and C Preferred Stock. The following table summarizes the details of the dividends that were declared:

Title of each class	Cash dividend per share		Record Date	Payment Date
Class A Common Stock	$	0.185	September 12, 2022	October 7, 2022
Series A Preferred Stock	$	0.384375	August 31, 2022	September 15, 2022
Series B Preferred Stock	$	11.625	August 31, 2022	September 15, 2022
Series C Preferred Stock	$	10.3125	August 31, 2022	September 15, 2022

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Basis of Preparation and Critical Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation

The Company consolidates financial statements of all entities in which the Company has a controlling financial interest, including the accounts of any Variable Interest Entity in which the Company has a controlling financial interest and for which it is the primary beneficiary. All material intercompany balances are eliminated in consolidation.

Basis of Accounting

The accompanying Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

Reclassifications

Reclassifications

Certain reclassifications have been made in the prior year’s consolidated financial statements to conform to the classifications in 2022.

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Debt Financing (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Summary of consolidated debt

The Company’s consolidated debt as of June 30, 2022 and December 31, 2021 is summarized below:

	June 30, 2022		December 31, 2021
	(in thousands)
Unsecured
Senior notes	$	17,685,728	$	16,892,058
Term financings	190,325		167,000
Revolving credit facility	520,000		—
Total unsecured debt financing	18,396,053		17,059,058
Secured
Term financings	120,226		126,660
Export credit financing	14,973		18,301
Total secured debt financing	135,199		144,961
Total debt financing	18,531,252		17,204,019
Less: Debt discounts and issuance costs	(195,177)		(181,539)
Debt financing, net of discounts and issuance costs	$	18,336,075	$	17,022,480

Schedule of maturities of debt outstanding

Maturities of debt outstanding as of June 30, 2022 are as follows:

	(in thousands)
Years ending December 31,
2022	$	1,291,611
2023	2,566,329
2024	2,885,280
2025	2,404,761
2026	3,963,094
Thereafter	5,420,177
Total	$	18,531,252

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Flight equipment subject to operating lease (Tables)

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Flight Equipment Subject to Operating Lease

The following table summarizes the activities for the Company’s flight equipment subject to operating lease for the six months ended June 30, 2022:

	(in thousands)
Net book value as of December 31, 2021	$	22,899,004
Additions	1,936,337
Depreciation	(470,591)
Transfers to net investments in sales-type leases	(105,991)
Write-off of Russian fleet	(791,017)
Net book value as of June 30, 2022	$	23,467,742
Accumulated depreciation as of June 30, 2022	$	(4,501,559)

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of contractual commitments to acquire aircraft

	Estimated Delivery Years
Aircraft Type	2022	2023	2024	2025	2026	Thereafter	Total
Airbus A220-100/300	4	16	24	20	12	—	76
Airbus A320/321neo(1)	17	23	23	24	35	64	186
Airbus A330-900neo	6	6	4	—	—	—	16
Airbus A350-900/1000	1	3	3	—	—	—	7
Airbus A350F	—	—	—	—	2	5	7
Boeing 737-8/9 MAX	14	31	34	19	16	—	114
Boeing 787-9/10	3	7	8	6	—	—	24
Total(2)	45	86	96	69	65	69	430
(1) The Company’s Airbus A320/321neo aircraft orders include 26 long-range variants and 49 extra long-range variants.
(2) The table above reflects Airbus and Boeing aircraft delivery delays based on contractual documentation.

Schedule of contractual commitments for the acquisition of aircraft at an estimated aggregate purchase price

Commitments for the acquisition of these aircraft, calculated at an estimated aggregate purchase price (including adjustments for anticipated inflation) of approximately $27.6 billion as of June 30, 2022, are as follows:

Years ending December 31,
2022	$	3,082,573
2023	6,057,223
2024	6,223,538
2025	4,186,938
2026	3,641,767
Thereafter	4,433,109
Total	$	27,625,148

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Rental Income (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Schedule of minimum future rentals

June 30, 2022, minimum future rentals on non-cancellable operating leases of flight equipment in the Company’s owned fleet, which have been delivered as of June 30, 2022 are as follows:

Years ending December 31,
2022 (excluding the six months ended June 30, 2022)	$	1,089,192
2023	2,093,379
2024	1,970,231
2025	1,823,512
2026	1,630,714
Thereafter	6,359,325
Total	$	14,966,353

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Earnings/(Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of reconciliation of basic and diluted earnings/loss per share

The following table sets forth the reconciliation of basic and diluted earnings/(loss) per share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in thousands, except share and per share)
Basic earnings/(loss) per share:
Numerator
Net income/(loss)	$	116,277	$	93,422	$	(352,716)	$	177,514
Preferred stock dividends	(10,425)		(7,835)		(20,850)		(11,679)
Net income/(loss) attributable to common stockholders	$	105,852	$	85,587	$	(373,566)	$	165,835
Denominator
Weighted-average shares outstanding	110,868,040		114,133,135		112,373,092		114,046,252
Basic earnings/(loss) per share	$	0.95	$	0.75	$	(3.32)	$	1.45
Diluted earnings/(loss) per share:
Numerator
Net income/(loss)	$	116,277	$	93,422	$	(352,716)	$	177,514
Preferred stock dividends	(10,425)		(7,835)		(20,850)		(11,679)
Net income/(loss) attributable to common stockholders	$	105,852	$	85,587	$	(373,566)	$	165,835
Denominator
Number of shares used in basic computation	110,868,040		114,133,135		112,373,092		114,046,252
Weighted-average effect of dilutive securities	175,796		244,830		—		327,324
Number of shares used in per share computation	111,043,836		114,377,965		112,373,092		114,373,576
Diluted earnings/(loss) per share	$	0.95	$	0.75	$	(3.32)	$	1.45

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Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Schedule of preferred stock issued and outstanding

The following table summarizes the Company’s preferred stock issued and outstanding as of June 30, 2022 (in thousands, except for share amounts and percentages):

	Shares Issued and Outstanding as of June 30, 2022	Carrying Value as of June 30, 2022		Issue Date	Dividend Rate in Effect at June 30, 2022		Next dividend rate reset date	Dividend rate after reset date
Series A	10,000,000	$	250,000	March 5, 2019	6.150	%	March 15, 2024	3M LIBOR plus 3.65%
Series B	300,000	300,000		March 2, 2021	4.650	%	June 15, 2026	5 Yr U.S. Treasury plus 4.076%
Series C	300,000	300,000		October 13, 2021	4.125	%	December 15, 2026	5 Yr U.S. Treasury plus 3.149%
Total Preferred Stock	10,600,000	$	850,000

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Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Summary of activities for unvested RSUs

The following table summarizes the activities for the Company’s unvested RSUs for the six months ended June 30, 2022:

	Unvested Restricted Stock Units
	Number of Shares	Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2021	1,571,415	$	43.88
Granted	652,016	$	47.24
Vested	(542,060)	$	42.50
Forfeited/canceled	(162,177)	$	40.51
Unvested at June 30, 2022	1,519,194	$	45.88
Expected to vest after June 30, 2022	1,317,556	$	46.52

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Net Investment in Sales-type Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Summary of components of investment in sales-type leases, net

The Company’s investment in sales-type leases consisted of the following (in thousands):

	June 30, 2022
Future minimum lease payments to be received	$	121,360
Estimated residual values of leased flight equipment	45,844
Less: Unearned income	(26,113)
Net Investment in Sales-type Leases	$	141,091

Schedule of future minimum lease payments to be received on sales-type lease

As of June 30, 2022, future minimum lease payments to be received on sales-type leases were as follows:

	(in thousands)
Years ending December 31,
2022 (excluding the six months ended June 30, 2022)	$	6,150
2023	12,300
2024	12,300
2025	12,300
2026	12,300
Thereafter	66,010
Total	$	121,360

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Subsequent Events (Tables)

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Schedule of dividends declared

The following table summarizes the details of the dividends that were declared:

Title of each class	Cash dividend per share		Record Date	Payment Date
Class A Common Stock	$	0.185	September 12, 2022	October 7, 2022
Series A Preferred Stock	$	0.384375	August 31, 2022	September 15, 2022
Series B Preferred Stock	$	11.625	August 31, 2022	September 15, 2022
Series C Preferred Stock	$	10.3125	August 31, 2022	September 15, 2022

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Company Background and Overview (Details)	6 Months Ended
	Jun. 30, 2022 aircraft
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of aircraft owned	392
Number of aircraft managed	89
Number of aircraft on order with manufacturers	430

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Debt Financing - Consolidated Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total debt financing	$ 18,531,252	$ 17,204,019
Less: Debt discounts and issuance costs	(195,177)	(181,539)
Debt financing, net of discounts and issuance costs	18,336,075	17,022,480
Total unsecured debt financing
Debt Instrument [Line Items]
Total debt financing	18,396,053	17,059,058
Senior notes
Debt Instrument [Line Items]
Total debt financing	17,685,728	16,892,058
Term financings
Debt Instrument [Line Items]
Total debt financing	190,325	167,000
Revolving Credit Facility
Debt Instrument [Line Items]
Total debt financing	520,000	0
Total secured debt financing
Debt Instrument [Line Items]
Total debt financing	135,199	144,961
Term financings
Debt Instrument [Line Items]
Total debt financing	120,226	126,660
Export credit financing
Debt Instrument [Line Items]
Total debt financing	$ 14,973	$ 18,301

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Debt Financing - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) aircraft	Aug. 04, 2022 USD ($)	May 05, 2022 USD ($)	Dec. 31, 2021 USD ($) aircraft
Debt Instrument [Line Items]
Outstanding balance	$ 18,531,252			$ 17,204,019
Subsequent Event
Debt Instrument [Line Items]
Line of credit maturity amount		$ 7,100,000
Senior notes
Debt Instrument [Line Items]
Outstanding balance	17,685,728			16,892,058
Medium Term Note Program | Senior notes
Debt Instrument [Line Items]
Principal amount issued	1,500,000
Medium Term Note Program Due 2027 | Senior notes
Debt Instrument [Line Items]
Principal amount issued	$ 750,000
Interest rate	2.20%
Medium Term Note Program Due 2032 | Senior notes
Debt Instrument [Line Items]
Principal amount issued	$ 750,000
Interest rate	2.875%
Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding balance	$ 520,000			0
Maximum borrowing capacity			$ 7,000,000
Facility fee	0.20%
Increase in borrowing capacity	$ 122,500
Commitments with extended maturity	$ 125,000
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Interest margin	1.05%
Unsecured Revolving Credit Facility Mature May 5, 2026 | Debt Instrument, Redemption, Period One | Subsequent Event
Debt Instrument [Line Items]
Line of credit maturity amount		6,700,000
Unsecured Revolving Credit Facility Mature May 5, 2025 | Debt Instrument, Redemption, Period Two | Subsequent Event
Debt Instrument [Line Items]
Line of credit maturity amount		32,500
Unsecured Revolving Credit Facility Mature May 5, 2023 | Debt Instrument, Redemption, Period Three | Subsequent Event
Debt Instrument [Line Items]
Line of credit maturity amount		$ 375,000
Other Debt Financings
Debt Instrument [Line Items]
Outstanding balance	$ 325,500			$ 312,000
Number of aircraft pledged as collateral | aircraft	3			3
Net book value of aircraft pledged as collateral	$ 217,100			$ 222,200

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Debt Financing - Maturities of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
2022	$ 1,291,611
2023	2,566,329
2024	2,885,280
2025	2,404,761
2026	3,963,094
Thereafter	5,420,177
Total	$ 18,531,252	$ 17,204,019

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Flight equipment subject to operating lease- Schedule of Flight Equipment Subject to Operating Lease (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Movement in Property, Plant and Equipment [Roll Forward]
Depreciation	$ (235,284)		$ (217,817)	$ (470,591)	$ (426,782)
Flight Equipment
Movement in Property, Plant and Equipment [Roll Forward]
Net book value, beginning balance		$ 22,899,004		22,899,004
Additions				1,936,337
Depreciation				(470,591)
Transfers to net investments in sales-type leases				(105,991)
Write-off of Russian fleet	0	$ (791,000)		(791,017)
Net book value, ending balance	23,467,742			23,467,742
Accumulated depreciation as of June 30, 2022	$ (4,501,559)			$ (4,501,559)

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Flight equipment subject to operating lease - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($) aircraft	Jun. 30, 2022 USD ($)	Aug. 04, 2022 aircraft
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]
Number of aircraft under operating lease terminated		24
Number of aircraft under operating lease terminated remaining in Russia, removed from owned fleet		21
Subsequent Event
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]
Number of aircraft under operating lease terminated remaining in Russia				21
Flight Equipment
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]
Write-off of Russian fleet | $	$ 0	$ 791,000	$ 791,017

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Commitments and Contingencies - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) aircraft	Dec. 31, 2021 USD ($)
Long-term Purchase Commitment [Line Items]
Number of aircraft on order with manufacturers | aircraft	430
Purchase obligation	$ 27,625,148
Minimum aircraft delivery delays that could trigger lessee cancellation clauses	1 year
Purchase agreements, termination commencement period	1 year
Non-refundable deposits on aircraft	$ 1,618,687	$ 1,508,892
Aircrafts
Long-term Purchase Commitment [Line Items]
Non-refundable deposits on aircraft	$ 1,600,000	$ 1,500,000

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Commitments and Contingencies - Aircraft Acquisition (Details)	6 Months Ended
	Jun. 30, 2022 aircraft
Aircrafts
Long-term Purchase Commitment [Line Items]
2022	45
2023	86
2024	96
2025	69
2026	65
Thereafter	69
Total	430
Airbus A220-100/300
Long-term Purchase Commitment [Line Items]
2022	4
2023	16
2024	24
2025	20
2026	12
Thereafter	0
Total	76
Airbus A320/321neo
Long-term Purchase Commitment [Line Items]
2022	17
2023	23
2024	23
2025	24
2026	35
Thereafter	64
Total	186
Number of long-range variant aircraft	26
Number of extra long-range variant aircrafts	49
Airbus A330-900neo
Long-term Purchase Commitment [Line Items]
2022	6
2023	6
2024	4
2025	0
2026	0
Thereafter	0
Total	16
Airbus A350-900/1000
Long-term Purchase Commitment [Line Items]
2022	1
2023	3
2024	3
2025	0
2026	0
Thereafter	0
Total	7
Airbus A350F
Long-term Purchase Commitment [Line Items]
2022	0
2023	0
2024	0
2025	0
2026	2
Thereafter	5
Total	7
Boeing 737-8/9 MAX
Long-term Purchase Commitment [Line Items]
2022	14
2023	31
2024	34
2025	19
2026	16
Thereafter	0
Total	114
Boeing 787-9/10
Long-term Purchase Commitment [Line Items]
2022	3
2023	7
2024	8
2025	6
2026	0
Thereafter	0
Total	24

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Commitments and Contingencies -Aircraft Acquisition at Aggregate Purchase Price (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 3,082,573
2023	6,057,223
2024	6,223,538
2025	4,186,938
2026	3,641,767
Thereafter	4,433,109
Total	$ 27,625,148

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Rental Income (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Leases [Abstract]
2022 (excluding the six months ended June 30, 2022)	$ 1,089,192
2023	2,093,379
2024	1,970,231
2025	1,823,512
2026	1,630,714
Thereafter	6,359,325
Total	$ 14,966,353

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Earnings/(Loss) Per Share - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 shares	Jun. 30, 2021 shares	Jun. 30, 2022 class_of_stock shares	Jun. 30, 2021 shares	Dec. 31, 2021 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of classes of common stock | class_of_stock			2
Class B Non‑Voting Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, outstanding (in shares)	0		0		0
Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares excluded related to restricted stock units	0	0	301,279	0
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares excluded related to restricted stock units			978,036	1,085,311

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Earnings/(Loss) Per Share - Reconciliation of Basic and Diluted Earnings/Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator
Net (loss)/income	$ 116,277	$ (468,993)	$ 93,422	$ 84,092	$ (352,716)	$ 177,514
Preferred stock dividends	(10,425)		(7,835)		(20,850)	(11,679)
Net income/(loss) available to common stockholders, basic	$ 105,852		$ 85,587		$ (373,566)	$ 165,835
Weighted Average Number of Shares Outstanding, Basic [Abstract]
Weighted-average shares outstanding (in shares)	110,868,040		114,133,135		112,373,092	114,046,252
Basic earnings/(loss) per share (in dollars per share)	$ 0.95		$ 0.75		$ (3.32)	$ 1.45
Numerator
Net (loss)/income	$ 116,277	$ (468,993)	$ 93,422	$ 84,092	$ (352,716)	$ 177,514
Preferred stock dividends	(10,425)		(7,835)		(20,850)	(11,679)
Net income/(loss) available to common stockholders, diluted	$ 105,852		$ 85,587		$ (373,566)	$ 165,835
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Basic (in shares)	110,868,040		114,133,135		112,373,092	114,046,252
Weighted-average effect of dilutive securities (in shares)	175,796		244,830		0	327,324
Number of shares used in per share computation	111,043,836		114,377,965		112,373,092	114,373,576
Diluted earnings/(loss) per share (in dollars per share)	$ 0.95		$ 0.75		$ (3.32)	$ 1.45

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Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Reported Value Measurement
Fair Value Measurements
Debt financing	$ 18,500.0	$ 17,200.0
Level 2
Fair Value Measurements
Debt financing	17,200.0	17,600.0
Recurring basis | Foreign Exchange Contract | Level 2
Fair Value Measurements
Derivative asset, fair value	$ 9.4	$ 14.1

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Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended	10 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2021	Apr. 30, 2022
Class of Stock [Line Items]
Preferred stock, issued (in shares)	10,600,000		10,600,000
Preferred stock, outstanding (in shares)	10,600,000		10,600,000
Preferred stock, aggregate liquidation preference	$ 850,000		$ 850,000
Stock repurchase program, authorized amount						$ 150,000
Class A Common Stock
Class of Stock [Line Items]
Common stock, authorized (in shares)	500,000,000	500,000,000	500,000,000	500,000,000	500,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common stock, issued (in shares)	110,892,097	113,987,154	110,892,097	113,987,154	113,987,154
Common stock, outstanding (in shares)	110,892,097	113,987,154	110,892,097	113,987,154	113,987,154
Number of shares repurchased	461,416		3,420,874
Shares repurchased, average cost (in dollars per share)	$ 44.33		$ 43.85
Class B Non‑Voting Common Stock
Class of Stock [Line Items]
Common stock, authorized (in shares)	10,000,000	10,000,000	10,000,000	10,000,000	10,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common stock, issued (in shares)	0	0	0	0	0
Common stock, outstanding (in shares)	0	0	0	0	0
Series A Preferred Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Preferred stock, issued (in shares)	10,000,000	10,000,000	10,000,000	10,000,000	10,000,000
Preferred stock, outstanding (in shares)	10,000,000	10,000,000	10,000,000	10,000,000	10,000,000
Preferred stock, dividend rate			6.15%		6.15%
Preferred stock, aggregate liquidation preference	$ 250,000	$ 250,000	$ 250,000	$ 250,000	$ 250,000
Preferred stock, liquidation preference (in dollars per share)	$ 25.00	$ 25.00	$ 25.00	$ 25.00	$ 25.00
Series B Preferred Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Preferred stock, issued (in shares)	300,000	300,000	300,000	300,000	300,000
Preferred stock, outstanding (in shares)	300,000	300,000	300,000	300,000	300,000
Preferred stock, dividend rate			4.65%	4.65%
Preferred stock, aggregate liquidation preference	$ 300,000	$ 300,000	$ 300,000	$ 300,000	$ 300,000
Preferred stock, liquidation preference (in dollars per share)	$ 1,000	$ 1,000	$ 1,000	$ 1,000	$ 1,000
Series C Preferred Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Preferred stock, issued (in shares)	300,000	300,000	300,000	300,000	300,000
Preferred stock, outstanding (in shares)	300,000	300,000	300,000	300,000	300,000
Preferred stock, dividend rate		4.125%	4.125%
Preferred stock, aggregate liquidation preference	$ 300,000	$ 300,000	$ 300,000	$ 300,000	$ 300,000
Preferred stock, liquidation preference (in dollars per share)	$ 1,000	$ 1,000	$ 1,000	$ 1,000	$ 1,000

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Shareholders' Equity - Preferred Stock Issued and Outstanding (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2021	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2021
Class of Stock [Line Items]
Preferred stock, issued (in shares)		10,600,000
Preferred stock, outstanding (in shares)		10,600,000
Preferred stock, aggregate liquidation preference		$ 850,000
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, issued (in shares)	10,000,000	10,000,000	10,000,000	10,000,000
Preferred stock, outstanding (in shares)	10,000,000	10,000,000	10,000,000	10,000,000
Preferred stock, aggregate liquidation preference	$ 250,000	$ 250,000	$ 250,000	$ 250,000
Preferred stock, dividend rate		6.15%		6.15%
Series A Preferred Stock | LIBOR
Class of Stock [Line Items]
Preferred stock, dividend rate, basis spread		3.65%
Series B Preferred Stock
Class of Stock [Line Items]
Preferred stock, issued (in shares)	300,000	300,000	300,000	300,000
Preferred stock, outstanding (in shares)	300,000	300,000	300,000	300,000
Preferred stock, aggregate liquidation preference	$ 300,000	$ 300,000	$ 300,000	$ 300,000
Preferred stock, dividend rate		4.65%	4.65%
Series B Preferred Stock | US Treasury (UST) Interest Rate
Class of Stock [Line Items]
Preferred stock, dividend rate, basis spread		4.076%
Series C Preferred Stock
Class of Stock [Line Items]
Preferred stock, issued (in shares)	300,000	300,000	300,000	300,000
Preferred stock, outstanding (in shares)	300,000	300,000	300,000	300,000
Preferred stock, aggregate liquidation preference	$ 300,000	$ 300,000	$ 300,000	$ 300,000
Preferred stock, dividend rate	4.125%	4.125%
Series C Preferred Stock | US Treasury (UST) Interest Rate
Class of Stock [Line Items]
Preferred stock, dividend rate, basis spread		3.149%

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Stock-based Compensation - Narrative (Details)		3 Months Ended		6 Months Ended
	May 07, 2014 shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) criteria shares	Jun. 30, 2021 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding (in shares)		0		0
Unrecognized compensation expense | $		$ 40,300,000		$ 40,300,000
Stock-based compensation expense | $		6,558,000	$ 6,700,000	$ 4,035,000	$ 12,108,000
Weighted-average period of recognition of unrecognized stock-based compensation cost				2 years 1 month 6 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of different vesting criteria | criteria				4
Number of shares other than options granted				652,016
Restricted Stock Units (RSUs) | Vesting Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years
Restricted Stock Units (RSUs) | Vesting Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 year
Restricted Stock Units (RSUs) | Vesting Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				2 years
Restricted Stock With Total Shareholder Return Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares other than options granted				110,237
Share-based Payment Arrangement, Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense | $		0		$ 0
Stock-based compensation | $		$ 0	$ 0	$ 0	$ 0
Restricted Stock Units (RSUs), Book Value
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares other than options granted				220,437
Equity Incentive Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	0
Number of shares authorized		4,216,707		4,216,707

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Stock-based Compensation - Unvested Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs)	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Unvested Restricted Stock Units, Number of Shares
Unvested at the beginning of the period (in shares) | shares	1,571,415
Granted (in shares) | shares	652,016
Vested (in shares) | shares	(542,060)
Forfeited/canceled (in shares) | shares	(162,177)
Unvested at the end of the period (in shares) | shares	1,519,194
Expected to vest after the end of the period (in shares) | shares	1,317,556
Unvested Restricted Stock Units, Weighted-Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 43.88
Granted (in dollars per share) | $ / shares	47.24
Vested (in dollars per share) | $ / shares	42.50
Forfeited/canceled (in dollars per share) | $ / shares	40.51
Unvested at the end of the period (in dollars per share) | $ / shares	45.88
Expected to vest after the end of the period (in dollars per share) | $ / shares	$ 46.52

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Aircraft Under Management (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2022 USD ($) aircraft aircraft_management_platform entity	Mar. 31, 2022 USD ($) aircraft	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) aircraft aircraft_management_platform entity joint_venture	Jun. 30, 2021 USD ($)	Aug. 04, 2022 aircraft	Dec. 31, 2021 USD ($)
Schedule of Equity Method Investments [Line Items]
Number of aircraft managed	89			89
Number of aircraft management platforms | aircraft_management_platform	3			3
Percentage of non-controlling interest ownership, number of entities | entity				2
Number of managed aircraft terminating lease		8
Asset write offs | $	$ 0		$ 0	$ 802,352	$ 0
Number of previously managed aircraft remaining in Russia, removed from managed fleet		6
Subsequent Event
Schedule of Equity Method Investments [Line Items]
Number of managed aircraft terminating lease remaining in Russia						6
Investments in Managed Platforms
Schedule of Equity Method Investments [Line Items]
Asset write offs | $	$ 0	$ 11,400
Financial Institutions Borrower
Schedule of Equity Method Investments [Line Items]
Number of aircraft				6
Blackbird Capital I and Blackbird Capital II
Schedule of Equity Method Investments [Line Items]
Number of aircraft				35
Number of joint ventures participated in | joint_venture				2
Percentage of equity ownership	9.50%			9.50%
Equity method investment | $	$ 64,200			$ 64,200			$ 73,200
Thunderbolt Platform
Schedule of Equity Method Investments [Line Items]
Number of aircraft				48
Investment in aircraft sold | $	$ 8,800			$ 8,800			$ 9,300
Thunderbolt II And Thunderbolt III
Schedule of Equity Method Investments [Line Items]
Percentage of noncontrolling interest	5.00%			5.00%
Aircraft Held For Sale | Thunderbolt Platform
Schedule of Equity Method Investments [Line Items]
Number of entities which aircraft is managed | entity	3			3

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Net Investment in Sales-type Leases - Narrative (Details)	Jun. 30, 2022 aircraft
Leases [Abstract]
Sales-type lease, number of aircrafts	5

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Net Investment in Sales-type Leases - Components of Investment in Sales-Type Leases, Net (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Leases [Abstract]
Future minimum lease payments to be received	$ 121,360
Estimated residual values of leased flight equipment	45,844
Less: Unearned income	(26,113)
Net Investment in Sales-type Leases	$ 141,091

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Net Investment in Sales-type Leases - Future Minimum Lease Payments to be Received on Sales-type Lease (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Leases [Abstract]
2022 (excluding the six months ended June 30, 2022)	$ 6,150
2023	12,300
2024	12,300
2025	12,300
2026	12,300
Thereafter	66,010
Total	$ 121,360

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Flight Equipment Held for Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations $ in Millions	Jun. 30, 2022 USD ($) aircraft	Dec. 31, 2021 aircraft
Six Aircraft
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of aircraft held for sale	6
Carrying value of assets held for sale | $	$ 220.9
Aircraft
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of aircraft held for sale		0

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Subsequent Events (Details) - $ / shares		3 Months Ended				6 Months Ended
	Aug. 03, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Subsequent Events
Cash dividends declared per share (in dollars per share)		$ 0.185	$ 0.185	$ 0.16	$ 0.16	$ 0.37	$ 0.32
Class A Common Stock | Subsequent Event
Subsequent Events
Cash dividends declared per share (in dollars per share)	$ 0.185
Series A Preferred Stock | Subsequent Event
Subsequent Events
Cash dividends declared per share (in dollars per share)	0.384375
Series B Preferred Stock | Subsequent Event
Subsequent Events
Cash dividends declared per share (in dollars per share)	11.625
Series C Preferred Stock | Subsequent Event
Subsequent Events
Cash dividends declared per share (in dollars per share)	$ 10.3125