By Nandan Mandayam and Dan Catchpole
(Reuters) -Aircraft lessor Air Lease reported higher third-quarter profit on Monday, helped by resilient aircraft rental revenue.
Air Lease posted net profit of $135.4 million, or $1.21 per diluted share, in the July-September quarter, beating the year-ago period’s $0.82 per share.
Global aircraft lessors have benefited from robust demand for leased jets and engines, charging higher rates as production delays at Boeing and Airbus leave airlines with fewer options to expand fleets.
In September, Air Lease approved a $7.4 billion buyout offer from Sumisho Air Lease Corporation, a group of investors led by SMBC Aviation Capital, to create the world’s largest aircraft leasing firm after industry leader AerCap.
Last week, AerCap topped quarterly profit and revenue estimates and said demand for aircraft rentals will remain strong.
Air Lease’s profit included a $60 million benefit from settling insurance claims related to aircraft stranded in Russia after that country’s invasion of Ukraine in 2022. As of November 3, the lessor has recovered 104% of its Russian fleet write-off recorded in March of 2022 after Russia invaded its neighbor.
(Reporting by Dan Catchpole in Seattle; Editing by Chris Reese)
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