Air Lease isn’t sure that Boeing, Airbus will hit year-end delivery targets

Air Lease (NYSE:AL) on Monday said the company isn’t sure that Boeing (NYSE:BA) and Airbus (OTCPK:EADSY) (OTCPK:EADSF) will meet their year-end targets for plane deliveries. Both planemakers have been dogged by manufacturing issues among their suppliers.

"Neither of the two big players will reach the target deliveries that they forecast," Steven Udvar-Hazy, chairman of Air Lease, said in a conference call to discuss earnings with analysts.

He cited Boeing’s (BA) difficulties with fixing defects in the 737 Max and said “787s are just perennially delayed.” He also pointed to Airbus’s (OTCPK:EADSY) (OTCPK:EADSF) challenges with supplier Pratt & Whitney, the unit of RTX (NYSE:RTX) that this year recalled dozens of jet engines to inspect possible defects.

The supply of new planes hasn’t kept up with demand among airlines that have seen a significant rebound in travel after the end of pandemic restrictions. Those limitations help companies such as Air Lease (AL) to command higher prices for their aircraft fleets.

Boeing (BA) last month lowered its delivery goal for the best-selling 737 because of the quality issues at supplier Spirit AeroSystems (NYSE:SPR). Airbus (OTCPK:EADSY) (OTCPK:EADSF) plans to deliver 720 commercial jets this year.

Air Lease (AL) said net income rose 22% to $122 million, or $1.10 a share, in the third quarter, from $100 million, or $0.90 a share, a year earlier. Adjusted earnings of $1.59 a share beat the consensus estimate of $1.47 a share.

Revenue rose 17% to $659.4 million in the three-month period ended September 30, beating the average estimate among Wall Street analysts of $657.7 million.