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Air Lease (AL) Adds 32 Boeing 737 MAX Jets to its Portfolio

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·3 min read
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Air Lease Corporation AL inked an agreement with Boeing (BA) pertaining to 737-8 and 737-9 jets. Boeing remains the largest U.S. aircraft manufacturer and is one of the major aerospace and defense contractors.

Considering rapid recovery in air-travel demand, the Los Angeles-based AL  decided to expand its portfolio with an order for 32 additional 737-8 and 737-9 jets to the aircraft manufacturer. The aircraft lessor has a total of 130 jets on its backlog currently, as 18 737 MAXs were added to its portfolio in February. The 737 MAX jets enable airlines to optimize their fleets across a broad range of missions, while reducing fuel use and carbon emissions by at least 20% compared with the airplanes they replace.

Chief executive officer and president of Air Lease Corporation, John L. Plueger, stated, “Following our memorandum of understanding with Boeing in February for these 32 737 MAX aircraft, we are pleased to announce the signing of this definitive purchase agreement. We believe that the economic and operating advantages of the 737 MAX will serve our airline customers well as they favor modern, fuel efficient aircraft”.

These fleet renewal techniques will help AL modernize its fleet with new fuel-efficient and eco-friendly Boeing aircraft. Such moves are expected to boost the top line by augmenting lease revenues.

Zacks Rank & Other Stocks to Consider

Air Lease currently sports a Zacks Rank #1 (Strong Buy).

Investors interested in the broader Zacks Transportation sector can also consider other top-ranked stocks — Expeditors International of Washington, Inc. EXPD, Old Dominion Freight Line, Inc. ODFL and Triton International Limited TRTN.

Expeditors has a trailing four-quarter earnings surprise of 34.2%, on average. The company’s bottom line beat the Zacks Consensus Estimate in all the last four quarters. The results have contributed to the carrier’s airfreight revenues. We are optimistic about EXPD’s buyout of the Fleet Logistics’ Digital Platform. The acquisition boosted its online LTL shipping platform Koho. The move is in line with its focus on Digital Solutions.

EXPD currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term expected earnings per share (EPS) (three-to-five years) growth rate for Old Dominion is pegged at 16%. ODFL is benefiting from the strong performance of its LTL segment, owing to improved freight conditions. In 2021, revenues from the LTL services segment increased 30.7% on a year-over-year basis.

Driven by the tailwinds, the stock has increased 12.7% in the past year.  ODFL currently carries a Zacks Rank #2 (Buy).

The long-term expected EPS (three-to-five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for TRTN. With easing coronavirus-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the third and the fourth quarter of 2020 as well as in each of the four quarters of 2021.

Driven by these positives, the stock has rallied 19.6% in the past year. TRTN currently carries a Zacks Rank of 2.


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Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
 
Air Lease Corporation (AL) : Free Stock Analysis Report
 
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