Air Lease Corporation (NYSE:AL) is a leading aircraft leasing company that currently owns and manages a fleet of 253 aircraft. Industry-wide change is being driven by increasing air travel demand from the rising middle-class population in international markets. This has led Air Lease to more than double its owned fleet within five years. Despite continued strong operating performance, the stock was weak due to general fears regarding the impact of tariffs on aircraft demand. Although Boeing was listed as a US company subject to Chinese tariffs, the tariffs were specific to very few models, and even if the tariffs became broader, it would tilt more Chinese airlines to lease rather than purchase which would be beneficial to aircraft lessors like Air Lease. We continue to believe the stock is attractive trading at book value.
From Keeley All Cap Value Fund 1st quarter 2018 shareholder letter.
