Genesis Lease Limited announces second quarter 2008 results

For the quarter ended June 30, 2008, Genesis Lease Limited reported net income was $9.0 million. During the quarter, two B737-700 aircraft in Genesis’s portfolio were returned from Aloha Airlines, as a result of the airline’s bankruptcy. The pre-tax impact of the early termination of the Aloha leases was $1.4 million, consisting of $2.5 million relating to a reduction in rental revenue and a charge to maintenance costs in preparation for re-lease of these aircraft, offset by the recognition of $1.1 million of security deposits during the quarter. Adjusting for this impact, net income would have been $10.2 million, compared to $11.4 million for the same period last year. The quarter ended June 30, 2008 additionally includes a charge of $1.8 million relating to the amortization of deferred financing costs and commitment fees in connection with Genesis’s $1 billion credit facility and an increase in depreciation related to planned major maintenance costs.

For the quarter ended June 30, 2008, rental revenues were $52.0 million, compared to $41.5 million for the same period in 2007, an increase of 25.3%.

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