May 6 (Reuters) - Air Lease Corp ( AL ) reported a

lower-than-expected quarterly profit on Monday as it made higher

interest payments on funds borrowed to finance aircraft

purchases.

The California-based company's results have gained in recent

quarters as supply of aircraft from the world's top two

planemakers, Boeing ( BA ) and Airbus, have been

constrained mainly due to parts and labor shortages.

But Air Lease's ( AL ) interest payments rose 19.8%, to $181.6

million in the first quarter, as the U.S. Federal Reserve kept

interest rates high in a bid to tame inflation.

As a result, profit per share was 87 cents, below analysts'

average expectation of 91 cents, according to LSEG data.

Air Lease's ( AL ) first-quarter revenue rose 4.3% to $663.3

million, but fell short of an expectation of $677.2 million.

The lessor, however, remained bullish on jet demand.

"With aircraft in short supply and values rising, we benefit

from continued fleet expansion and sales activity in an industry

backdrop that remains positive. We see this environment

continuing for the near to medium term future," Air Lease ( AL ) said

in a statement.