First Quarter 2012 Highlights

• Adjusted net income of $26.8 million, $1.04 per share
• Net income of $20.4 million, $0.78 per share
• Acquired two aircraft, bringing fleet total to 111
• Extended $600 million debt facility through 2018
• Declared 18^th consecutive quarterly dividend
• Second quarter dividend to be increased by 10%

Colm Barrington,FLY Leasing's,chief executive officer said, “FLY is reporting very strong first quarter earnings, reflecting our significantly larger portfolio following last year’s aircraft acquisitions.

“Our first quarter revenue increased by more than 100% from the same period last year. Our EPS and Adjusted Net Income per share have each grown by over 600% as compared to a year ago. We ended the quarter with $159 million of unrestricted cash.

“In April, FLY announced a dividend of $0.20 per share for the first quarter. This is our 18^th consecutive quarterly dividend since we listed on the NYSE in 2007,” added Barrington. “FLY’s board has authorized a 10% increase in the dividend to be declared in respect of the second quarter. FLY remains committed to returning capital to shareholders in the form of a dividend.

“During the first quarter we extended the term of a $600 million financing facility from 2012 until 2018 on attractive terms. This underscores the quality of FLY’s fleet and the strength of our banking relationships.”

Financial Results

FLY’s net income and basic and diluted earnings per share for the first quarter of 2012 were $20.4 million and $0.78, respectively, compared to net income of $2.8 million and earnings per share of $0.10 for the same period in 2011. Contributing to the increase in earnings was $15.9 million of end of lease revenue.

Total revenues for the first quarter of 2012 were $104.5 million and include $86.5 million of rental revenue. This 115% increase in revenue reflects the increased size of the fleet and end of lease revenue. Likewise, operating expenses for the first quarter of 2012 were $81.5 million, a 76% increase over the same period in the previous year.

Adjusted Net Income

Adjusted net income was $26.8 million for the first quarter of 2012 compared to $3.7 million in the same period in the previous year. On a per share basis, Adjusted Net Income was $1.04 in the first quarter of 2012 compared to $0.14 for the same period in the previous year.

Please see the reconciliation of Adjusted Net Income to net income determined in accordance with GAAP below.

Dividends and Share Repurchases

On April 13, 2012, FLY declared a dividend of $0.20 per share in respect of the first quarter of 2012. This dividend will be paid on May 21, 2012 to shareholders of record on April 30, 2012. FLY’s board has authorized a 10% increase in the dividend to be declared in respect of the second quarter.

On May 2, 2012, the company’s board of directors approved a $25 million share repurchase program expiring in May 2013 to replace the previous program. Under this program, FLY may make share repurchases from time to time in the open market or in privately negotiated transactions. The timing of the repurchases under this program will depend upon a variety of factors, including market conditions, and the program may be suspended or discontinued at any time.

Financial Position

At March 31, 2012, FLY’s total assets were $3.2 billion, including flight equipment with a net book value of $2.8 billion. Cash and cash equivalents at March 31, 2012 totaled $408.5 million, of which $158.6 million was unrestricted. This compares to total cash and cash equivalents of $380.5 million at December 31, 2011, of which $82.1 million was unrestricted. During the first quarter of 2012, FLY sold securitization notes with a face value of $106.7 million, generating net cash proceeds of $52.8 million after repayment of associated debt.

Aircraft Portfolio

At March 31, 2012, FLY’s 111 aircraft were on lease to 53 airlines in 29 countries. Three aircraft were off lease. Of these, we have entered into letters of intent with respect to two of these aircraft for delivery to new lessees in the second quarter. The table below shows the aircraft in FLY’s portfolio as of March 31, 2012 and December 31, 2011. The table does not include four B767 aircraft owned by a joint venture in which FLY has a 57% interest.

At March 31, 2012, the average age of the portfolio was 8.7 years weighted by the net book value of each aircraft. The average remaining lease term was 3.3 years, also weighted by net book value. At March 31, 2012, FLY’s leases were generating annualized rental revenues of approximately $360 million.