Air Lease forecasts strong demand for jets, warns on production risks

Air Lease Corp Thursday pointed to strong demand for the industry's most popular jet models as travel recovers from the pandemic but warned of potential risks to jet production from stretched global supply chains. The Los Angeles-based leasing giant issued the remarks after reporting a quarterly loss driven by an $800m write-off of jets stranded in sanctions-hit Russia. Global aircraft leasing companies have been scrambling to repossess more than 400 jets worth almost $10b from Russian airlines, which have mostly been unresponsive to demands for surrendering the jets. "We are vigorously pursuing our insurance coverage and believe we have strong and valid claims," Air Lease CE John Plueger told analysts after posting results. Air Lease Chairman Steven Udvar-Hazy added that future aircraft destined for customers in Russia have been placed with airlines in the Americas and Europe, at similar or in some cases higher lease rates.<br/>Air Lease said air travel demand was driving the need for both new and young used aircraft, supporting higher lease rates and boosting the value of jets in its fleet. But they said rising demand for medium-haul jets post-pandemic coupled with industrial and certification risks at top planemakers Boeing and Airbus raises the potential for a jet shortage.<br/>