Air Lease Corporation

ITEM 1A. RISK FACTORS

Other than sas stated below, there have been no material changes in our risk factors from those discussed under Part IItem 1A. Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2024.

Expo and Part restrictions and tariffs may impact where we can placII Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

Income and deliver our aircraft another taxes could negatively impaaffect our ability to execute

onbusiness and operating results due to our long-term strategy.

Existing export restricmulti-jurisdictional operations impact where we can place and deliver our aircraft. New export restr.

We operate in multiple jurisdictions, including thosthe implemented quickly or as a resultncome and other tax regimes of geopolitical events, which may impact where we can placebe unsettled and deliver our aircraft or the ability of our lesseessubject to change. If we are unable to operaexecute our aircraft in certabusiness in jurisdictions, which may negatively impact our earnings and cash flows. For example, in early 2022, in connec with favorable tax treatment, our operation with the ongoing conflict between Russia and Ukraine, the United States, European Union, United Kingdoms may be subject to significant income and others imposed economic sanctions and export controls against certain industry sectors and parties in Russia. These sanctions include closures of  taxes. Moreover, because our airspace for aircracraft are operated by Russian airlines, bans on the leasing or sale of aircraft to Russian controlled entitieour lessees in multiple states and foreign jurisdictions, bans on the export and re-exporwe may have nexus or taxable presence as a result of our aircraft land aircraft components to Russian controlled entitiings in such states or for use in Russia, and corresponding prohibieign jurisdictions on providing technical assistance, broker, which may result in our being services, insurance and reinsurance, as well as financing or financiubject to various foreign, state and local assistance. While we terminated all of our leasing ataxes in such jurisdictivities in Russia in March 2022, ons. Furthese sanctions and export controls continue to place restrr, any changes in tax laws in any of the jurisdictions oin wheich we are and how certain of our lessees can operate aircraft they lesubject to income or other taxes, such as increase from us.

Tariffs can also impact os in tax rates or limitations on our ability to place and deliver aircraft. Our leadeduct certain expenses are primarily structuredfrom taxable income, such as triple net leases, whdepreciation expense and intereby the lessee is responsible for all operst expense, could materially affect our tax obligating costs including the costs associated with the importation ofons and effective tax rate. To the aircraft andextent any price increases on components needed for maintenance over such changes occur within the life of the lease. As a result, new or increased tariffs imposed after a lease is signed will result in a higher than anticipated cost for imported aircraft that our lesseesUnited States, whether under U.S. federal, state or local tax law, we may not be willing to assume and which could adversedisproportionately impact demand for aircraft, creating an oversupply of aircraft and potentially placing downward pressure on lease rates and aed as compared to our competitor aircraft market values. Additionallylessors. For example, certain of our lessees whose aircraft delivery has been delayed by over one year have lease cancellation rights, which they may exercise. Tariffs could also increase our costs for aircraft and components under our purchase agreements with manufacprovisions of the Tax Cuts and Jobs Act that phased into effect in 2022 limit our ability to deduct interest expense from taxable income in futurers, though our forward purchase agree financial statements contain escala. Also, the Inflation Reduction caps for future price increases,Act of 2022 added, and were subject to limitations in some cases. For example, in Octobsequently modified by the Act among other 2019, the U.S. announcedthings, a 10% tariff5% minimum tax on new aircraft importthe adjusted from Europe, including Airbus aircraft which was raised to 15% in March 2020. In November 2020, the E.U. announced a 15% tariff on new aircraft iminancial statement income of certain large corported into the E.U. from the U.S., including Boeing aircraft. In June 2021, ations, as well as a 1% excise tax on the U.S. and E.U. temporarily suspended all retaliatory tariffs related to new aircraft imports for five yearnet amount of certain stock repurchases by domestic public corporations. In April 2025, Furthe U.S. announced a 10% baseline tariff on all countrier, our tax obligations and individualized higher tariffs on nations with which the U.S. assesses that it has the largest trade deficits. Theeffective tax rate could increase actions s a resulted in retaliatory of international tariffs by other countriex developments, though such higher tariffs between the U.S. and other countries havincluding the implementation of the been temporarily paused through July 2025, with the exception for tariffs on China. The extent and duration ofase erosion and profit shifting (BEPS) project that was led by the announced tariffs are uncertaiOrganization for Economic Cooperation and the impact on our business depends on various factors, such as negotiaDevelopment (OECD), a coalitions between the U.S. and oth of member countries, exemptions or exclusions that may be granted. Airbus Canada Limited Partnership (Airb. The OECD recommended changes to numerous Canada) manufactures a majority of our Airbus A220 aircraft in Mirabel, Quebec and acceptlong-standing tax principles, including delivery in the U.S. of aircraft manufactured in this facility may subject a lessee to additionalimplementation of a minimum global effective tariffs, though as x rate of March 31, 2025, we did not have any A220 aircraft scheduled for delivery15%. A number of countries in the U.S. in 2025 or beyond. Airwhich we conduct bus Canada alsoiness has a manufve enacturing facility in Mobile, Alabama ed, or are in the U.S. Deliveriesprocess of U.S. manufenactured Boeing aircraft to other countries where tariffs may be imp, core elemented bys of the U.S. could subject those lessees to additional costs. As of March 31se rules. Also, on July 4, 2025, no aircraft placed for delivery from our orderbook are expected to be subject to current tariffs.

We cannot predict what further actthe 2025 budget reconciliations may ultimately be taken with respect to export controls, tariffs or trade relations between the U.S. and o bill, commonly referred to as ther countries. Accordingly, it is difficult to predict exactly how, and to what extent, such  One Big Beautiful Bill Act of 2025 was enactions may impact our business, or the business of our lessees or aircraft manufacturers. Any unfavorable government policies on international trade, such as export controls, capital controls or tariffs, may affect the demand for aircraft from our orderbook, increaseed into law. This new legislation introduces an increased tax deduction for interest expense and a 100% bonus depreciation on U.S. leased assets. While we are still in the costprocess of aircraft componentevaluating these changes, delay production, impact the competitive position of certain aircraft manufacturers or prevent aircraft manufacturers from being awe do not anticipate a significant impact on our effective tax rate. It is possible to sell aircraft in certain countries. More broadly, hat these changes, or othe impact of such tariffr tax law changes or uncertainty as a result of such tariffs, is likely to have near term negative impact on the global economy and may serve to reduce demand for air travel which would negatively impact our business. In turn, this may impact where we can place and deliinterpretations, could increase our compliance costs or future tax liabilities, or otherwise adver our aircraft which may negativesely impaaffect our ability to execute on our long-term strategyfinancial results.