- Latest Edition May 15th: Mega orders show long term optimism
- Latest Edition May 1st: Tariffs: a win-win solution for aircraft
- April 17th Edition: Tariffs on aircraft - delay and hope
- April 3rd Edition: Avoiding tariff turbulence
- March 20th Edition: How tariffs could reshape the aircraft market
- March 6th Edition: The possible slowdown in international air travel
Leasing Business Avolon receives upgrades from Moody's and Fitch
Airline Business Passenger demand grows but outstripped by capacity growthThe latest figures for global passenger demand for air travel grew year-on-year for March but this growth lagged behind growth in passenger capacity, leading to a drop in load factors, while the world's largest domestic air travel market, the US, saw passenger demand drop slightly. Meanwhile, activity in air freight for March was influenced by companies frontloading imports ahead of the US tariffs announcements in early April, with air cargo demand hitting an historic peak for March. Airline Business Qatar Airways and IAG's widebody mega orders shows airlines already looking beyond tariff turbulenceQatar Airways and IAG's moves to make multibillion dollar widebody orders amid global economic uncertainties brought about by the imposition of broad tariffs by the US administration demonstrates these airlines' long term views on the likelihood of aviation and aircraft prices being impacted by the current tariff issues in the longer term. Developments Air Lease took delivery of 14 aircraft in Q1; Record quartely revenue for Willis LeaseAir Lease took delivery of 14 aircraft in Q1 2025; Willis Lease sees record quarterly revenue for Q1; SKY Leasing acquires JetBlue Ventures; CALC agrees nine aircraft deal with new customer Thai Airways; Azorra delivers 4 aircraft in Q1; HALO AirFinance closes loan for Crestone Air Partners; Willis Lease Finance moves consultancy arm to joint venture; ACIA delivers ATR72-600 to Emerald Airlines. |
In this issue In this issueDespite many uncertainties around where and when the market will settle amidst the ongoing upheavel brought about by changing US trade policy and tariffs, and resulting retaliation from its trading partners, the resilience of the aircraft leasing model, proven through numerous economic cycles and aviation industry shocks, is in evidence in this issue. This includes Avolon's latest credit rating upgrade, as well as AviLease's recent assent to investment grade status, and strong quarterly results from Air Lease and Willis Lease, as well as the reopening of the aviation ABS market. Aviation ABS PK AirFinance and Sky Leasing end aviation ABS issuance hiatusFollowing a flurry of early year activity in the aircraft ABS market, issuances dried up as markets attempted to digest and understand how the US' new tariff policies would impact on global trade and commerce. However, after an almost three month issuance pause in the aviation ABS market both PK AirFinance (through an aviation loan ABS) and Sky Leasing (aircraft-backed ABS) have brought their latest offerings to the market. Leasing Business Avilease's first direct aircraft order is the lessor's latest milestone after recently obtaining investment grade status
Leasing Business DAE completes Nordic Aviation Capital acquisitionDubai Aerospace Enterprise has completed the acquisition of Nordic Aviation Capital Designated Activity Company and its consolidated subsidiaries from NAC Holdings Limited, giving DAE a fleet of 750 owned, managed and committed aircraft. The enterprise value of the takeover is approximately $2 billion. |
Enhanced funding flexibility, strengthening profitability and improving aircraft fleet and customer composition were amongst the key rating drivers noted by the credit rating agencies in their assessments to upgrade Avolon's credit ratings. The moves 'highlight the strength of our balance sheet and high levels of liquidity' said Avolon CFO Ross O'Connor. The lessor has also recently closed over $2 billion in unsecured banking facilities.
The Saudi Arabian lessor describes its Boeing 737 MAX order as a strategic investment for the both the growth of its business and the Saudi Arabian aviation ecosystem. It joins a small number of lessors that currently have direct OEM orders and adds a new channel to the lessor's activity according to CEO Edward O'Byrne. In late April Avilease received investment grade corporate credit ratings of Baa2 from Moody’s Ratings and BBB from Fitch Ratings.