It is a well-known fact that the transportation space has been one of the worst-hit corners of the industry due to the coronavirus pandemic. However, Air Lease Corporation AL is one of the shining stars in this beleaguered space. Over the past three months, shares of the company have gained 6.8%.
Notwithstanding the pandemic, Air Lease has been well-served by its fleet growth. During the March-quarter, the company received delivery of eight aircraft and purchased one from the secondary market, which represented $709 million in aircraft investments. As of Mar 31, 2020, Air Lease owned 300 aircraft in the operating lease portfolio with a net book value of $19.2 billion. This compares favorably with 292 aircraft at the end of 2019 with a net book value worth$18.7 billion.
Air Lease’s impressive fleet made it one of the leading leasers of commercial jets to airline players. Continuing with this trend, Air Lease recently delivered a new Airbus A320-200neo jet to Atlantic Airways, the national carrier of the Faroe Islands. Notably, the delivery was made on long-term lease. The addition of this aircraft, equipped with all modern amenities, should enhance the flying experience of Atlantic Airways’ passengers, thereby helping the carrier generate additional traffic.
In fact, this was the second A320-200neo jet that is powered by CFM International LEAP-1A26 engines to be delivered to Atlantic Airways by Air Lease. Notably, the first such fuel-efficient aircraft was delivered by the company in March 2019 to the national carrier of the Faroe Islands. Earlier this month, Air Lease announced that it will deliver the first Airbus A320-200 aircraft to HiSky Moldova in July.
Zacks Rank & Other Key Picks
Air Lease carries a Zacks Rank #2 (Buy), currently. Investors interested in the broader Transportation sector may also consider some other top-ranked stocks like Scorpio Tankers Inc. STNG, Teekay Tankers Ltd. TNK and Frontline Ltd FRO. While Frontline presently sports a Zacks Rank #1 (Strong Buy), Scorpio Tankers and Teekay Tankers currently carry the same Zacks Rank as Air Lease. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Scorpio Tankers’ current-year earnings has been revised 55% upward in the past 60 days.
The Zacks Consensus Estimate for Teekay Tanker’s current-year earnings has been raised 35.6% in the past 60 days.
The Zacks Consensus Estimate for Frontline’s current-year earnings has moved 17.1% northin the past 60 days.
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