Aviation Finance

Aviation Finance Vol. 15 No 14, July 10th 2025. ISSN 2009-7859

Aircraft Financing

Conditions improving for recovery in EETC issuance levels

Fitch Ratings sees the continuing, steady improvement in Boeing's aircraft production levels as being a catalyst to support increased issuance of Enhanced Equipment Trust Certificates in the second half of 2025 and into 2026. The global credit ratings agency said rising aircraft deliveries bolster confidence among suppliers and airlines, provides greater certainty for fleet planning and aircraft financing, and contributes to a more predictable operating environment for the sector.

Leasing Business

Avolon reports strong performance in Q2, prices notes offering

While the second quarter closed with a relatively quiet Paris Air Show for aircraft lessors, Avolon was one of the few that announced a significant leasing deal during the industry get-together, which added to its strong Q2 2025 performance. The lessor has also announced pricing on a $650m notes offering.

Leasing Business

AerCap completed 116 asset deals in Q2 2025

While deal activity remained strong during the second quarter (including 71 lease agreements) the standout development for AerCap was around its 'Russian stranded assets' case in London where the Commercial Court awarded AerCap just over $1 billion from the war risks insurers of its contingent and possessed insurance policy in respect of its assets lost in Russia in 2022.

Developments

Aircastle sees strong revenue growth in Q2; SMBC Aviation Capital agrees five jet deal with Turkish

Aircastle sees strong revenue growth in Q2; SMBC Aviation Capital agrees five aircraft deal with Turkish Airlines’ low cost carrier AJet; Malaysia Aviation Group adds 20 widebodies with Airbus A330neo order; Air Lease records net benefit of $344 million on Russian assets in Q2; BOC Aviation’s Q2 trading update; AELF completes $31 million financing Absa Bank Group; Falko sees continuing heightened renewal activity in Q2

  
In this issue

In this issue

Trading updates featured in this issue underline the strong operating environment for the aircraft leasing sector with strong levels of lease extensions reported. After underwhelming levels of aircraft order numbers at Le Bourget post-Air Show order news flow has been positive with Malaysia Airlines and Air Asia making significant orders while consultancy IBA predicts substantial aircraft orders will be made in the remainder of 2025. Elsewhere, Boeing's upward trajectory on the delivery front is seen as a positive for the EETC market.

Aircraft Economics

Narrowbody storage rates above pre-Covid levels despite high demand for aircraft

Despite very high demand for used aircraft new research from SMBC Aviation Capital shows that storage rates for current technology Boeing 737s and Airbus A320s remain elevated compared to pre-Covid levels. In the lessor's latest Plane Insights for Q3 2025 they look at what is behind the figures.

Airline Business

Further large orders predicted in 2025 despite subdued Paris Air Show

Aviation consultancy IBA anticipates a strong second half of 2025, with large-scale commitments expected for both OEMs’ aircraft from key global operators. It anticipates major order announcements during the remainder of the year with the Dubai Air Show, which takes place in November, a likely venue for such deals to be revealed.

Aviation Business

AirAsia plans to transform network with Airbus mega order

AirAsia said it plans to use the Airbus A321XLR to become the first all narrowbody low cost long haul carrier following the signing of a landmark MoU with Airbus for up to 70 of the long range narrowbody. The airline says adding the A321XLR will enable it to serve longer-range, underserved routes more efficiently, including into Central Asia, the Middle East, and Europe. The aircraft are scheduled for delivery commencing 2028 through 2032.