Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Aircraft Acquisition

As of September 30, 2024, the Company had commitments to purchase 287 aircraft from Airbus and Boeing for delivery through 2029, with an estimated aggregate commitment of $18.2 billion. The following table shows the Company’s contractual delivery commitment schedule as of September 30, 2024:


	Estimated Delivery Years
Aircraft Type	Last 3 months of 2024	2025	2026	2027	2028	Thereafter	Total
Airbus A220-100/300	8	14	6	12	12	2	54
Airbus A320/321neo(1)	3	7	23	57	40	4	134
Airbus A330-900neo	2	—	1	—	—	—	3

Airbus A350F	—	—	—	4	2	1	7
Boeing 737-8/9 MAX	11	27	20	12	2	—	72
Boeing 787-9/10	6	7	4	—	—	—	17
Total(2)	30	55	54	85	56	7	287


(1) The Company’s Airbus A320/321neo aircraft orders include seven long-range variants and 49 extra long-range variants.
(2) The table above reflects aircraft deliveries based on contractual documentation and production adjustments as communicated by Airbus and Boeing through November 7, 2024. The Company’s contractual delivery commitment schedule is subject to a number of factors outside its control, including ongoing delays by Airbus and Boeing for certain aircraft, including as a result of the Boeing labor strike, and the Company cannot guarantee delivery of any particular aircraft at any specific time notwithstanding its contractual delivery commitment schedule.

The table above is subject to change based on Airbus and Boeing delivery delays. As noted below, the Company expects delivery delays for some aircraft in its orderbook. The Company remains in discussions with Airbus and Boeing to determine the extent and duration of delivery delays; however, the Company is not currently able to determine the full impact of these delays.

Pursuant to the Company’s purchase agreements with Airbus and Boeing, the Company agrees to contractual delivery dates for each aircraft ordered. These dates can change for a variety of reasons, however for the last several years, manufacturing delays have significantly impacted the planned purchases of the Company’s aircraft on order with Airbus and Boeing. The Company is currently experiencing delivery delays with both Airbus and Boeing aircraft.

In January 2024, the FAA ordered the temporary grounding of certain Boeing 737-9 MAX aircraft after the in-flight loss of a mid-cabin exit door plug in one aircraft. The 737-9 MAX aircraft has since returned to service; however, Boeing will not be allowed

by the FAA to increase 737 MAX production rates until quality control issues are resolved. In addition, in September 2024, the Company was notified by Boeing that certain union factory workers had commenced a labor strike. On November 4, 2024, the union factory workers voted to end the labor strike. The Company did not take delivery of any 737 MAX aircraft during the labor strike and some 787 deliveries were impacted. The Company expects its Boeing deliveries will continue to be delayed and is unable to estimate the duration of delays or the impact on the Company’s Boeing orderbook. The residual impacts of the Boeing labor strike have and may continue to impact the broader aviation supply chain.

The aircraft purchase commitments discussed above could also be impacted by cancellations. The Company’s purchase agreements with Airbus and Boeing generally provide each of the Company and the manufacturers with cancellation rights for delivery delays starting at one year after the original contractual delivery date, regardless of cause. In addition, the Company’s lease agreements generally provide each of the Company and the lessee with cancellation rights related to certain aircraft delivery delays that typically parallel the cancellation rights in the Company’s purchase agreements.

Commitments for the acquisition of these aircraft, calculated at an estimated aggregate purchase price (including adjustments for anticipated inflation) of approximately $18.2 billion as of September 30, 2024, are as follows (in thousands):


Years ending December 31,
2024 (excluding the nine months ended September 30, 2024)	$	2,341,110
2025	3,687,740
2026	3,527,040
2027	5,227,217
2028	3,002,390
Thereafter	416,433
Total	$	18,201,930

The Company has made non-refundable deposits on flight equipment purchases of $1.1 billion and $1.2 billion as of September 30, 2024 and December 31, 2023, respectively, which are subject to manufacturer performance commitments. If the Company is unable to satisfy its purchase commitments, the Company may be forced to forfeit its deposits and may also be exposed to breach of contract claims by its lessees as well as the manufacturers.