Why Shares of Air Lease Underperformed During the First Half of 2020
This has been a rough year for airlines, and for all the companies that rely on aviation for their revenue. Air Lease Corp. (NYSE: AL) shares fell 38.4% in the first half of 2020, according to data from S&P Global Market Intelligence, on fears the company could be dragged down by a long-term slump in the airline business.
The COVID-19 pandemic has changed the outlook for the airline industry. Carriers that came into 2020 in growth-mode are now forced to fight for their survival because of a fall in travel demand. That means grounding planes, and canceling plans to add new jets in the months to come.
That is bad news for Air Lease, which is in the business of buying planes and leasing them to airlines. As of year-end 2019, the company owned a portfolio of 292 aircraft leased out to more than 200 airlines spread across 70 countries.
Source Fool.com
