LOS ANGELES--(BUSINESS WIRE)--May 07, 2026--
Sumisho Air Lease announces financial results for the three months ended March 31, 2026.
First Quarter 2026 Results
The following table summarizes the operating results for Sumisho Air Lease Corporation (the "Company") for the three months ended March 31, 2026 and 2025 (in millions, except per share amounts and percentages):
Operating Results
Three Months Ended
March 31,
----------------------------------------
2026 2025 $ change % change
------ ------ -------- ----------
Revenues $ 739.2 $ 738.3 $ 0.9 0.1%
Operating expenses (589.3) (598.6) 9.3 (1.6)%
Recoveries of
Russian fleet
write-off -- 331.9 (331.9) --
Income before
taxes 149.9 471.7 (321.8) (68.2)%
Net income
attributable to
common
stockholders $ 114.8 $ 364.8 $(250.0) (68.5)%
Diluted earnings
per share $ 1.02 $ 3.26 $ (2.24) (68.7)%
Adjusted net
income before
income taxes(1) $ 165.4 $ 169.5 $ (4.1) (2.4)%
Adjusted diluted
earnings per
share before
income taxes(1) $ 1.47 $ 1.51 $ (0.04) (2.6)%
Key Financial Ratios
Three Months Ended
March 31,
-------------------------
2026 2025
------------------ -----
Pre-tax margin 20.3% 63.9%
Adjusted pre-tax margin(1) 22.4% 23.0%
(1) Adjusted net income before income taxes, adjusted diluted earnings per
share before income taxes and adjusted pre-tax margin have been
adjusted to exclude the effects of certain non-cash items and other
items that we do not believe are indicative of our ongoing operations,
such as retirement compensation, merger related costs, and recoveries
related to our former Russian fleet. See note 1 under the Consolidated
Statements of Income included in this earnings release for a discussion
of the non-GAAP measures and a reconciliation to their most comparable
GAAP financial measures.
Highlights
-- On April 8, 2026, Air Lease Corporation completed the previously
announced merger (the "Merger") of Takeoff Merger Sub Inc., with and into
Air Lease Corporation, with Air Lease Corporation surviving the Merger as
an indirect subsidiary of Sumisho Air Lease Corporation Designated
Activity Company ("Parent"). Parent is a new holding company established
in connection with the Merger and is jointly owned, directly or
indirectly, by Sumitomo Corporation, SMBC Aviation Capital Limited ("SMBC
AC") and investment vehicles affiliated with Apollo managed funds and
Brookfield. Air Lease Corporation changed its name to Sumisho Air Lease
Corporation in connection with the Merger.
-- During the first quarter, we took delivery of 12 aircraft from our
orderbook, representing $780 million in aircraft investments, ending the
period with 496 aircraft in our owned fleet and over $33 billion in total
assets.
-- Sold six aircraft during the first quarter for $275 million in sales
proceeds.
-- We have $5.6 billion of aircraft in our sales pipeline1, which includes
approximately $940 million in flight equipment held for sale as of March
31, 2026 and approximately $4.6 billion of aircraft subject to letters of
intent.
(1) Aircraft in our sales pipeline is as of March 31, 2026, and includes
letters of intent and sale agreements signed through May 7, 2026.
Financial Overview
First Quarter 2026 vs. First Quarter 2025
Our total rental of flight equipment revenue for the three months ended March 31, 2026 increased by approximately 4%, to $674 million, as compared to the three months ended March 31, 2025. The increase is primarily due to the growth of our flight equipment subject to operating leases since March 31, 2025 and an increase in our portfolio yield.
Our gain on aircraft sales and trading and other income decreased to $65 million for the three months ended March 31, 2026, as compared to $93 million for the three months ended March 31, 2025, which was primarily driven by lower sales activity. During the three months ended March 31, 2026, we recorded $53 million in gains from the sale of six aircraft, compared to $61 million in gains from the sale of 16 aircraft and $8 million from one sales-type lease for the three months ended March 31, 2025. In addition, we had a $8 million decrease in management fee revenue and a $4 million decrease in other income, which includes interest income, foreign currency fluctuations on our sales-type leases and other miscellaneous income from the prior year period.
Our total operating expenses decreased by 2% to $589 million during the three months ended March 31, 2026, as compared to $599 million of total operating expenses, excluding the recovery of our Russian fleet write-off of $332 million, during the three months ended March 31, 2025. Despite the increase in our composite cost of funds, our interest expense decreased by $8 million due to lower average debt balances during the period. In addition, although we incurred $9 million in merger-related costs during the first quarter of 2026, this was largely offset by non-recurring retirement expenses for our former executive chairman recognized during the first quarter of 2025, resulting in our selling, general and administrative expenses to be relatively flat as compared to the prior year period. Depreciation expense for the three months ended March 31, 2026, compared to the three months ended March 31, 2025 increased $11 million due to the growth of our fleet.
Our net income attributable to common stockholders for the three months ended March 31, 2026 decreased to $115 million, or $1.02 per diluted share, from $365 million, or $3.26 per diluted share, for the three months ended March 31, 2025. In the prior year, we benefited from a $332 million settlement of insurance claims with certain insurers related to aircraft detained in Russia, as well as higher gains on sales, resulting in a decrease in our net income attributable to common stockholders in the current period. These were slightly offset by higher total rental of flight equipment revenue in the current period and an overall decrease in our total operating expenses, as discussed above.
For the three months ended March 31, 2026, we recorded adjusted net income before income taxes of $165 million, or $1.47 per adjusted diluted share, as compared to adjusted net income before income taxes of $169 million, or $1.51 per adjusted diluted share, for the three months ended March 31, 2025. Despite the increase in our rental revenues due to the growth of our fleet and higher portfolio lease yield in the current period, our adjusted net income decreased primarily due to lower sales activity and an increase in depreciation expense, partially offset by a decrease in interest expense due to lower average debt balances during the period.
Flight Equipment Portfolio
As of March 31, 2026, the net book value of our flight equipment subject to operating leases was $28.9 billion, compared to $29.1 billion as of December 31, 2025. During the quarter, we reclassified $628.9 million in aircraft value to flight equipment held for sale, resulting in a decrease in the net book value of our fleet. As of March 31, 2026, we owned 496 aircraft in our aircraft portfolio, comprised of 357 narrowbody aircraft and 139 widebody aircraft, and we managed 40 aircraft. The weighted average fleet age and weighted average remaining lease term of flight equipment subject to operating leases as of March 31, 2026 was 5.0 years and 7.2 years, respectively. We had a globally diversified customer base comprised of 103 airlines in 52 countries as of March 31, 2026.
The following table summarizes the key portfolio metrics of our fleet as of March 31, 2026 and December 31, 2025:
March 31, 2026 December 31, 2025
---------------- ---------------------
Net book value of flight
equipment subject to operating
leases $ 28.9 billion $ 29.1 billion
Weighted-average fleet age(1) 5.0 years 4.9 years
Weighted-average remaining
lease term(1) 7.2 years 7.2 years
Owned fleet(2) $ 496 $ 490
Managed fleet(3) 40 45
Aircraft on order(4) 206 218
------------ ---------------
Total 742 753
Current fleet contracted
rentals $ 19.2 billion $ 19.6 billion
Committed fleet
rentals(4) $ 8.6 billion $ 9.3 billion
------------ ---------------
Total committed rentals $ 27.8 billion $ 28.9 billion
(1) Weighted-average fleet age and remaining lease term calculated based on
net book value of our flight equipment subject to operating leases.
(2) As of March 31, 2026 and December 31, 2025, our owned fleet count
included 25 and 12 aircraft classified as flight equipment held for
sale, respectively, and 17 and 16 aircraft classified as net
investments in sales-type leases, respectively.
(3) We will continue to manage our managed fleet after the Merger; however,
certain services for the aircraft and leases will be subserviced by
SMBC AC.
(4) On April 8, 2026, in connection with the closing of the Merger, SMBC AC
acquired the rights to our outstanding orderbook for undelivered
aircraft. For further discussion on the Merger see our Quarterly Report
on Form 10-Q for the quarter ended March 31, 2026.
The following table details the regional concentration of our flight equipment subject to operating leases:
March 31, 2026 December 31, 2025
--------------------- ---------------------
Region % of Net Book Value % of Net Book Value
Europe 39.2% 39.1%
Asia Pacific 36.9% 36.5%
Central America, South
America, and Mexico 10.5% 10.7%
The Middle East and
Africa 7.1% 7.8%
U.S. and Canada 6.3% 5.9%
-------------- ---- -------------- ----
Total 100.0% 100.0%
============== ==== ============== ====
The following table details the composition of our owned fleet by aircraft type:
March 31, 2026 December 31, 2025
----------------------- -----------------------
Number of Number of
Aircraft type Aircraft % of Total Aircraft % of Total
--------- ------------ --------- ------------
Airbus
A220-100 9 1.8% 8 1.6%
Airbus
A220-300 34 6.9% 33 6.7%
Airbus
A320-200 16 3.2% 17 3.5%
Airbus
A320-200neo 20 4.0% 23 4.7%
Airbus
A321-200 17 3.4% 17 3.5%
Airbus
A321-200neo 112 22.6% 109 22.2%
Airbus
A330-200(1) 13 2.6% 13 2.7%
Airbus
A330-300 5 1.0% 5 1.0%
Airbus
A330-900neo 28 5.6% 28 5.7%
Airbus
A350-900 17 3.4% 17 3.5%
Airbus
A350-1000 8 1.6% 8 1.6%
Boeing
737-800 37 7.5% 38 7.8%
Boeing 737-8
MAX 76 15.3% 71 14.5%
Boeing 737-9
MAX 35 7.1% 35 7.1%
Boeing
777-200ER 1 0.2% 1 0.2%
Boeing
777-300ER 23 4.6% 23 4.7%
Boeing 787-9 26 5.2% 26 5.3%
Boeing 787-10 18 3.7% 17 3.5%
Embraer E190 1 0.3% 1 0.2%
--------- -------- --------- --------
Total(2) 496 100.0% 490 100.0%
========= ======== ========= ========
(1) As of March 31, 2026 and December 31, 2025, aircraft count includes
three Airbus A330-200 aircraft classified as freighters, respectively.
(2) As of March 31, 2026 and December 31, 2025, our owned fleet count
included 25 and 12 aircraft classified as flight equipment held for
sale, respectively, and 17 and 16 aircraft classified as net
investments in sales-type leases, respectively.
Debt Financing Activities
Our total debt financing, net of discounts and issuance costs, was $20.8 billion, $19.8 billion and $19.7 billion as of April 30, 2026, March 31, 2026 and December 31, 2025, respectively. As of April 30, 2026, March 31, 2026, and December 31, 2025, 78.8%, 67.6% and 76.8% of our total debt financing was at a fixed rate, respectively, and 99.2% and 97.9% and 97.5% was unsecured. Our composite cost of funds was 4.33%, 4.29% and 4.15% as of April 30, 2026, March 31, 2026 and December 31, 2025, respectively. We ended the quarter with total liquidity of $5.4 billion.
As of the end of the periods presented, our debt portfolio was comprised of the following components (dollars in millions, except percentages):
April 30, March 31, December 31,
2026 2026 2025
------------ ------------ ---------------
Unsecured
Senior unsecured
securities $16,417 $12,390 $ 13,861
Term financings 4,244 3,607 3,847
Commercial paper -- 1,046 1,361
Revolving credit
facility -- 2,470 --
Other revolving
credit
facilities -- -- 300
------ --- ------ --- ------ ---
Total
unsecured
debt
financing 20,661 19,513 19,369
Secured
Term financings -- 255 318
Export credit
financing 169 171 175
------ --- ------ --- ------ ---
Total secured
debt
financing 169 426 493
Total debt
financing 20,830 19,939 19,862
Less: Debt
discounts
and
issuance
costs (49) (120) (132)
------ ------ ------
Debt financing,
net of discounts
and issuance
costs $20,781 $19,819 $ 19,730
====== === ====== === ====== ===
Selected interest
rates and ratios:
Composite interest
rate(1) 4.33% 4.29% 4.15%
Composite interest
rate on fixed-rate
debt(1) 4.18% 4.02% 3.91%
Percentage of total
debt at a
fixed-rate 78.81% 67.57% 76.85%
(1) This rate does not include the effect of upfront fees, facility fees,
undrawn fees or amortization of debt discounts and issuance costs.
Conference Call
In connection with this earnings release, Sumisho Air Lease will host a conference call on May 7, 2026 at 4:30 PM Eastern Time to discuss the Company's financial results for the first quarter of 2026.
Investors can participate in the conference call by dialing 1 (800) 715-9871 domestic or 1 (646) 307-1963 international. The passcode for the call is 5685809.
The conference call will also be broadcast live through a link on the Investors page of the Sumisho Air Lease website at www.sumisho.aero. Materials presented during the conference call will also be posted on the Sumisho Air Lease website. Please visit the website at least 15 minutes prior to the call to register, download and install any necessary audio software. A transcript of the conference call will be available on the Investors page of the Sumisho Air Lease website for a period of 12 months following the conference call.
About Sumisho Air Lease
Sumisho Air Lease Corporation is a leading global aircraft leasing company acquired by Sumitomo Corporation, SMBC Aviation Capital, and investment vehicles affiliated with Apollo and Brookfield in April 2026. The company is principally engaged in leasing liquid and new technology aircraft to airlines throughout the world. Sumisho Air Lease routinely posts information that may be important to investors in the "Investors" section of its website at www.sumisho.aero. Investors and potential investors are encouraged to consult Sumisho Air Lease's website regularly for important information. The information contained on, or that may be accessed through, Sumisho Air Lease's website is not incorporated by reference into, and is not a part of, this press release.
Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements appear in a number of places in this press release and include statements regarding, among other matters, the state of the airline industry, our ability to access the capital and debt markets, our aircraft sales pipeline and expectations, changes in inflation and interest rates and other macroeconomic conditions 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 service our debt obligations and refinance maturing debt
obligations;
-- increases in our cost of borrowing, decreases in our credit ratings or
changes in interest rates;
-- our inability to generate sufficient returns on our aircraft
investments through strategic aircraft acquisitions and profitable
leasing;
-- 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, inflation, 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;
-- potential conflicts of interest with SMBC AC, as servicer of the
majority of our aircraft;
-- increased competition from other aircraft lessors;
-- the failure by our lessees to adequately insure our aircraft or fulfill
their contractual indemnity obligations to us, or the failure of such
insurers to fulfill their contractual obligations;
-- 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 II -- Item 1A. Risk
Factors" in our Quarterly Report on Form 10-Q for the quarter ended March
31, 2026, and other Securities and Exchange Commission ("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.
Sumisho Air Lease Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and par value amounts)
March 31, 2026 December 31, 2025
-------------------------- -----------------------
(in thousands, except share and par value amounts)
Assets
Cash and cash
equivalents $ 554,062 $ 466,410
Restricted cash 502 3,540
Flight equipment
subject to operating
leases 35,732,476 35,880,458
Less accumulated
depreciation (6,857,633) (6,826,828)
---- ---------------- ----------------
28,874,843 29,053,630
Net investment in
sales-type leases 462,797 460,806
Deposits on flight
equipment purchases 1,081,857 1,052,141
Flight equipment held
for sale 940,330 529,016
Other assets 1,253,889 1,318,150
---- ---------------- ----------------
Total assets $ 33,168,280 $ 32,883,693
==== ================ ================
Liabilities and
Stockholders' Equity
Accrued interest and
other payables $ 1,063,515 $ 1,012,345
Debt financing, net of
discounts and issuance
costs 19,819,195 19,730,129
Security deposits on
flight equipment
leases 618,667 622,556
Maintenance reserves on
flight equipment
leases 1,542,339 1,477,046
Rentals received in
advance 127,109 143,631
Deferred tax liability 1,448,357 1,425,230
---- ---------------- ----------------
Total liabilities $ 24,619,182 $ 24,410,937
---- ---------------- ----------------
Stockholders' Equity
Preferred Stock, $0.01
par value; 50,000,000
shares authorized;
900,000 (aggregate
liquidation preference
of $900,000) shares
issued and outstanding
at March 31, 2026 and
December 31, 2025,
respectively 9 9
Class A common stock,
$0.01 par value;
500,000,000 shares
authorized;
112,415,671 and
112,035,408 shares
issued and outstanding
at March 31, 2026 and
December 31, 2025,
respectively 1,124 1,120
Class B Non-Voting
common stock, $0.01 par
value; 10,000,000
shares authorized; no
shares issued or
outstanding -- --
Paid-in capital 3,372,554 3,383,414
Retained earnings 5,183,013 5,092,929
Accumulated other
comprehensive (loss) (7,602) (4,716)
---- ---------------- ----------------
Total
stockholders'
equity $ 8,549,098 $ 8,472,756
---- ---------------- ----------------
Total liabilities
and
stockholders'
equity $ 33,168,280 $ 32,883,693
==== ================ ================
Sumisho Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share amounts)
Three Months Ended
March 31,
----------------------------------
2026 2025
----------- -----------
(unaudited)
Revenues and other income
Rental of flight equipment
revenue
Lease rentals $ 666,675 $ 637,233
Maintenance rentals and
other receipts 7,241 8,137
----------- -----------
Total rental of flight
equipment revenue 673,916 645,370
Gain on aircraft sales and
trading and other income 65,307 92,912
----------- -----------
Total revenues and other
income 739,223 738,282
----------- -----------
Expenses
Interest 201,844 208,574
Amortization of debt
discounts and issuance
costs 12,408 13,995
----------- -----------
Interest expense 214,252 222,569
Depreciation of flight equipment 309,783 299,019
Recoveries of Russian fleet
write-off -- (331,938)
Selling, general and
administrative 60,191 59,348
Stock-based compensation expense 5,096 17,616
----------- -----------
Total expenses 589,322 266,614
----------- -----------
Income before taxes 149,901 471,668
Income tax expense (24,005) (95,836)
----------- -----------
Net income $ 125,896 $ 375,832
----------- -----------
Preferred stock dividends (11,081) (11,081)
----------- -----------
Net income attributable to common
stockholders $ 114,815 $ 364,751
=========== ===========
Earnings per share of common
stock:
Basic $ 1.03 $ 3.27
Diluted $ 1.02 $ 3.26
Weighted-average shares of common
stock outstanding
Basic 111,936,166 111,549,903
Diluted 112,484,656 112,030,382
Other financial data
Pre-tax margin 20.3% 63.9%
Adjusted net income before
income taxes(1) $ 165,412 $ 169,490
Adjusted diluted earnings per
share before income taxes(1) $ 1.47 $ 1.51
Adjusted pre-tax margin(1) 22.4% 23.0%
(1) Adjusted net income before income taxes (defined as net income
attributable to common stockholders excluding the effects of certain
non-cash items and other items that we do not believe are indicative of
our ongoing operations, such as retirement compensation, merger related
costs and recoveries related to our former Russian fleet), adjusted
pre-tax margin (defined as adjusted net income before income taxes
divided by total revenues) and 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) are
measures of operating performance that are not defined by GAAP and
should not be considered as an alternative to net income attributable
to common stockholders, pre-tax margin, earnings per share and diluted
earnings per share, or any other performance measures derived in
accordance with GAAP. Adjusted net income before income taxes, adjusted
pre-tax margin and adjusted diluted earnings per share before income
taxes 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 and adjusted diluted earnings per
share before income taxes 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 and other items that we do not believe are
indicative of our ongoing operations. Adjusted net income before income
taxes, adjusted pre-tax margin and adjusted diluted earnings per share
before income taxes, 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 and adjusted diluted earnings per share before income
taxes 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 and adjusted diluted earnings per share before income
taxes may differ from the adjusted net income before income taxes,
adjusted pre-tax margin and adjusted diluted earnings per share before
income taxes or analogous calculations of other companies in our
industry, limiting their usefulness as a comparative measure.
The following table shows the reconciliation of the numerator for adjusted pre-tax margin (in thousands, except percentages):
Three Months Ended
March 31,
---------------------------
2026 2025
------- --------
(unaudited)
Reconciliation of the numerator for
adjusted pre-tax margin (net income
attributable to common stockholders to
adjusted net income before income
taxes):
Net income attributable to common
stockholders $114,815 $ 364,751
Amortization of debt discounts and
issuance costs 12,408 13,995
Recoveries of Russian fleet write-off -- (331,938)
Stock-based compensation expense 5,096 17,616
Retirement compensation expense -- 9,230
Merger related costs 9,088 --
Income tax expense 24,005 95,836
------- --------
Adjusted net income before income
taxes $165,412 $ 169,490
======= ========
Denominator for adjusted pre-tax margin:
Total revenues $739,223 $ 738,282
------- --------
Adjusted pre-tax margin(a) 22.4% 23.0%
======= ========
(a) Adjusted pre-tax margin is adjusted net income before income taxes
divided by total revenues.
The following table shows the reconciliation of the numerator for adjusted diluted earnings per share before income taxes (in thousands, except share and per share amounts):
Three Months Ended
March 31,
-----------------------------
2026 2025
----------- -----------
(unaudited)
Reconciliation of the numerator for
adjusted diluted earnings per share
(net income attributable to common
stockholders to adjusted net income
before income taxes):
Net income attributable to common
stockholders $ 114,815 $ 364,751
Amortization of debt discounts and
issuance costs 12,408 13,995
Recoveries of Russian fleet write-off -- (331,938)
Stock-based compensation expense 5,096 17,616
Retirement compensation expense -- 9,230
Merger related costs 9,088 --
Income tax expense 24,005 95,836
----------- -----------
Adjusted net income before income
taxes $ 165,412 $ 169,490
Denominator for adjusted diluted
earnings per share:
Weighted-average diluted common
shares outstanding 112,484,656 112,030,382
----------- -----------
Adjusted diluted earnings per
share before income taxes(b) $ 1.47 $ 1.51
=========== ===========
(b) Adjusted diluted earnings per share before income taxes is adjusted net
income before income taxes divided by weighted-average diluted common
shares outstanding.
Sumisho Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
March 31,
----------------------------
2026 2025
---------- ----------
(unaudited)
Operating Activities
Net income $ 125,896 $ 375,832
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation of flight equipment 309,783 299,019
Recoveries of Russian fleet write-off -- (331,938)
Stock-based compensation expense 5,096 17,616
Deferred taxes 23,912 95,322
Amortization of prepaid lease costs 21,049 22,704
Amortization of discounts and debt
issuance costs 12,408 13,995
Foreign currency remeasurement
(gain)/loss on sales-type leases 3,058 (5,764)
Gain on aircraft sales, trading and
other activity (53,780) (68,838)
Changes in operating assets and
liabilities:
Other assets 38,434 13,581
Accrued interest and other
payables 34,003 (34,234)
Rentals received in advance (16,522) (8,949)
---------- ----------
Net cash provided by operating
activities 503,337 388,346
---------- ----------
Investing Activities
Acquisition of flight equipment (572,689) (585,725)
Payments for deposits on flight
equipment purchases (189,766) (179,774)
Proceeds from aircraft sales, trading
and other activity 248,586 407,624
Proceeds from settlement of insurance
claims -- 328,546
Acquisition of aircraft furnishings,
equipment and other assets (58,314) (72,871)
---------- ----------
Net cash used in investing activities (572,183) (102,200)
---------- ----------
Financing Activities
Cash dividends paid on Class A common
stock (24,588) (24,503)
Cash dividends paid on preferred
stock (11,081) (11,081)
Tax withholdings on stock-based
compensation (15,952) (12,271)
Net change in unsecured revolving
facilities 2,170,000 30,000
Net change in commercial paper
balance (315,100) 888,500
Proceeds from debt financings 100,000 199,950
Payments in reduction of debt
financings (1,857,406) (1,477,864)
Debt issuance costs (47) (1,385)
Security deposits and maintenance
reserve receipts 120,734 114,436
Security deposits and maintenance
reserve disbursements (13,100) (7,419)
---------- ----------
Net cash provided/(used in) by financing
activities 153,460 (301,637)
---------- ----------
Net increase/(decrease) in cash 84,614 (15,491)
Cash, cash equivalents and restricted
cash at beginning of period 469,950 476,104
---------- ----------
Cash, cash equivalents and restricted
cash at end of period $ 554,564 $ 460,613
========== ==========
Supplemental Disclosure of Cash Flow
Information
Cash paid during the period for
interest, including capitalized
interest of $11,277 and $7,860 at March
31, 2026 and 2025, respectively $ 217,861 $ 237,890
Cash paid for income taxes $ 2,143 $ 38
Supplemental Disclosure of Noncash
Activities
Buyer furnished equipment, capitalized
interest and deposits on flight
equipment purchases applied to
acquisition of flight equipment and
other assets $ 197,492 $ 214,047
Flight equipment subject to operating
leases reclassified to flight equipment
held for sale $ 628,925 $ 60,572
Transfer of flight equipment to
investment in sales-type lease $ 21,674 $ 33,778
Cash dividends declared on Class A
common stock, not yet paid $ 24,731 $ 24,587
View source version on businesswire.com: https://www.businesswire.com/news/home/20260506941124/en/
CONTACT: Investors:
Jason Arnold
Vice President, Investor Relations
Email: investors@sumisho.aero
Media:
Ashley Arnold
Senior Manager, Media and Investor Relations
Email: press@sumisho.aero
(END) Dow Jones Newswires
May 07, 2026 17:20 ET (21:20 GMT)