Air Lease Corporation Air Lease Corporation 2015 Annual Report 2015 Annual Report 2000 Avenue of the Stars, Suite 1000N Los Angeles, CA 90067 USA www.airleasecorp.com To OurCorporate Fellow Stockholders Information Transfer Agent Corporate Headquarters American Stock Transfer & Trust Company, LLC Air Lease Corporation 6201 15th Avenue 2000 Avenue of the Stars, Suite 1000N Brooklyn, NY 11219 Los Angeles, California 90067 877.833.6643 310.553.0555 $1.22 $4.64 www.amstock.com Stock Exchange Listing $1.05 $4.03 Independent Registered Public New York Stock Exchange (Symbol: AL) $0.86 $3.16 Accounting Firm KPMG LLP $0.66 $2.40 550 South Hope Street, Suite 1500 $0.34 $1.46 Los Angeles, CA 90071 213.972.4000 www.kpmg.com 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Overall, we are proud of ALC’s business performance in 2015. We generated record Total Revenue Earnings Per Share revenues of $1.2 billion and record adjusted earnings per share of $4.64. Over the last (In Billions) (Adjusted Diluted EPS) five years we have grown revenues at a compounded annual growth rate of 38% and in November 2015 we announced the third increase of our dividend to $0.20 per share per annum. Our lease placements were strong across our entire portfolio and particularly for our widebody aircraft. With a few exceptions, our global airline customers are in the best financial shape they have ever been in and are enjoying record passenger traffic and earnings. These are stable, positive trends that we see continuing. Our aircraft sales were equally robust and profitable in 2015, and we concluded a milestone agreement to sell our fleet of 25 young ATR turboprop aircraft to Nordic Aviation Capital. We continued to build the Blackbird Capital I fleet and our overall management business, which grew Annual Meeting Form 10-K and Other Reports to 29May jets.4, 2016 We lowered our overall funding costs,Stockholders increased may our receive liquidity, a copy of received the 2015 Form a positive7:30 AM ratings Pacific outlookTime from Standard & Poors, and10-K had and record other reports revenues, we file withcash the flow Securities and and adjustedCentury earnings.Plaza Towers Exchange Commission, without charge by writing to: 2029 Century Park East Air Lease Corporation WeLos have Angeles, not Californiaseen meaningful 90067 evidence that global economic concerns and aviation 2000 Avenue of the Stars, Suite 1000N Concourse Level, Conference Room A industry risks have had a negative impact on our business.Los Angeles, While California the 90067strengthening dollar is a headwind in some regions, lower fuel prices remainOr by email a huge to: [email protected] net positive for the airline Air Lease Corporation is a leading aircraft leasing company based in Los Angeles, California. ALC and its team of dedicated industry. Questions about widebody aircraft values Pleaseand excess visit www.airleasecorp.com supply have so to far view proven and experienced professionals are principally engaged in purchasing new commercial aircraft delivering from its direct orders to be mostly noise. China, and more broadly Asia,or remaindownload strong a PDF of aircraft this annual marketplaces report. with Boeing and Airbus, and leasing them to its airline customers worldwide through customized aircraft leasing and financial solutions. The mission of ALC is to work with these airlines to modernize and grow their fleets, consult with manufacturers and we believe that this will continue for the foreseeable future. Certainly there are areas Forward-Looking Statements as they develop the next generation of fuel-efficient and environmentally friendly aircraft, and continue to explore strategic of softness in the world, primarily in Brazil and Russia, where our total exposure is very This Annual Report contains forward-looking statements within the meaning of the Private Securities Litigation Reform business solutions for our clients to support their growth and success. Beyond lease expertise, ALC offers route and schedule small.Act ofRecently, 1995, including we statementsremoved about two the single future aisleof our aircraftbusiness. Suchfrom statements airlines arein Russia,based on currentand placed expectations analysis, fleet optimization and planning, aircraft and engine purchasing consulting, aircraft procurement services, aircraft themand profitably projections about elsewhere, our future results,and we prospects also andsold opportunities aircraft thatand are were not guarantees on lease of infuture Brazil. performance. That’s Such financing support, aircraft investment analysis and recommendations, and can act as global servicer and manager for aircraft statements will not be updated unless required by law. Actual results and performance may differ materially from those lease portfolios. theexpressed beauty orof forecasted mobile inassets. forward-looking statements due to a number of factors, including those discussed in our !lings with the Securities and Exchange Commission. We see much more discipline today on the part of airlines as to capacity and fi nancial management, along with the manufacturers as they make critical decisions on forward production rates and supply chain management. A healthy competitive balance between Airbus and Boeing is a key focus for us and for the industry. We are working closely UNITED STATES with Boeing and Airbus on new product development designs as well as optimizing SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 derivatives of existing models. The tradeoff is always between fi lling a product gap versus product fragmentation. And, for competitive balance, we believe that continuation of FORM 10-K U.S. Export Import Bank fi nancing guaranty programs are important to airlines as long (Mark One) _ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE as the European ECA’s continue to offer that alternative. These programs globally need ACT OF 1934 continued reform with an ultimate view towards an equal and fair playing fi eld. For the fiscal year ended December 31, 2015 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 We face some increased competition in our business, but we believe our results, today For the transition period from to and in the future, will continue to demonstrate that we are well positioned to deal with this Commission File Number 001-35121 competition. We have continued to innovate new solutions and structures for our airline AIR LEASE CORPORATION (Exact name of registrant as specified in its charter) customers that create opportunities for ALC to maintain attractive lease margins. Periods Delaware 27-1840403 (State or other jurisdiction of (I.R.S. Employer of elevated competition are nothing new to our management team, and most of the lessor incorporation or organization) Identification No.) 2000 Avenue of the Stars, Suite 1000N 90067 competition is in the sale-leaseback segment of the business where ALC is not an active Los Angeles, California (Zip Code) participant due to lower lease yields. (Address of principal executive offices) (Registrants telephone number, including area code): (310) 553-0555 After decades in this business, we know that there are always concerns and risks across Securities registered pursuant to Section 12(b) of the Act: Name of each exchange a variety of fronts. But we believe our business model and philosophies, honed and tested Title of each class on which registered Class A Common Stock New York from years of experience, reduce those risks and will continue to yield industry leading Securities registered pursuant to Section 12(g) of the Act: None results. Yet we are never content and we continue to pursue operating strategies and Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes _ No explore new opportunities that we believe will enhance total shareholder return. Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes No _ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such We take this opportunity to thank our talented employees, our airline partners, our suppliers filing requirements for the past 90 days. Yes _ No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data and the fi nanciers, all of whom continue to contribute to ALC’s outstanding success and File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such growth. We also thank our stockholders for their continued support of ALC. shorter period that the registrant was required to submit and post such files). Yes _ No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or Respectfully, any amendment to this Form 10-K. _ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check One): Large accelerated filer _ Accelerated filer Non-accelerated filer Smaller reporting company (Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b 2 of the Exchange Act).