*

Air Lease ( AL ) CEO sees aircraft supply shortfalls for next 3-5

years

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Demand for air freighters fluctuates due to U.S. tariff

strategy

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Air Lease ( AL ) cancels 2021 order for seven Airbus A350

freighters

(Adds details throughout)

By Dan Catchpole, Shivansh Tiwary and Anshuman Tripathy

Aug 4 (Reuters) -

Aircraft lessor Air Lease Corp ( AL ) reported a rise in

second-quarter profit and revenue on Monday, due to a $344

million insurance claim settlement plus robust aircraft rental

demand.

Aircraft lessors have benefited from strong lease rates as

airlines rush to secure jets amid persistent supply-chain

challenges and limited aircraft availability. However,

production delays at Boeing ( BA ) and Airbus have

extended delivery schedules, limiting lessors' ability to fully

capitalize on the rising demand.

Boeing ( BA ) and Airbus plan to increase output, but "even with

those increases, which have not all been achieved by any

certainty, there is still a shortfall in supply for the next

three to five years," Air Lease ( AL ) CEO John Plueger said during a

conference call with investment analysts on Monday.

The company confirmed that it canceled its 2021 order for

seven Airbus A350 freighters last month. Delivery of the planes

was already one year late, Plueger said during the call.

Demand for air freighters has fluctuated in recent months,

he said, adding that it appears to stem from the United States'

aggressive use of tariffs in trade negotiations.

The U.S. and European Union's provisional agreement to

exempt commercial aerospace goods

from tariffs should be a "clear precedent" for the globe,

he said.

Per the company's lease agreements, its customers are

responsible for any applicable tariff payments, he noted.

Air Lease ( AL ) reported a net income of $374.1 million, or $3.33 per

share, for the quarter ended June 30, compared with $90.4

million, or 81 cents per share, in the same period a year

earlier.

Much of that increase was from a $344 million insurance

claim settlement for aircraft which were blocked from leaving

Russia after the country's invasion of Ukraine in February 2022.

So far this year, Air Lease ( AL ) has received $676 million in

settlement payments.

The company expects to recognize an additional net benefit of

about $60 million in the third quarter of 2025 from the

settlement of additional insurance claims.

Its revenue rose 9.7% to $731.7 million during the quarter.