Aviation Finance

Aviation Finance Vol. 15 No 22, October 30th 2025. ISSN 2009-7859

Leasing Business

With NAC integration complete DAE grows pre-tax profits by 100% Q3 figures show

CEO Firoz Tarapore said 2025 is 'shaping up to be a very good year' for Dubai Aerospace Enterprise (DAE) with the company reporting pre-tax profit for the first three quarters of 2025 reached $653m up 100% on the same period in 2024, as the full benefit of the acquisition of NAC (which closed on May 7th 2025), was reflected in its quarterly figures for the first time. Tarapore also said DAE's MRO arm, Joramco, is also set to produce record revenue and profits in 2025.

Aircraft Investment

FTAI hits $2 billion fundraising cap for its inaugural fund targetting a $300 billion opportunity

FTAI Aviation, a leading provider of engines and related services for current technology narrowbodies, has reached a milestone in its strategy to develop an asset management business of scale, with the announcement that its inaugural Strategic Capital Initiative (FTAI SCI I) fund has reached its equity funding cap of $2 billion. This equity backing, which was upsized from its initial target of $1.5 billion, will give the vehicle purchasing power of $6 billion when including debt financing and, according to FTAI, is the largest fund dedicated to acquiring mid-life, current generation aircraft. With mainstream lessors shifting their portfolios to new technology aircraft, there will be ample opportunities for new players to invest in current technology aircraft and FTAI is looking to seize the opportunity to become one of the largest lessors of current technology narrowbodies through SCI.

Leasing Business

Q3 net income up 24% at Avolon

Sustained demand for aircraft underpinned Avolon's strong Q3 performance with the lessor recording net income growth of 24% compared to Q3 2024. CEO Andy Cronin said demand remains 'exceptionally strong' while the lessor increased its unsecured debt ratio to 76%.

  
In this issue

In this issue

Across the quarterly lessor updates in this issue the entrenched themes in the aviation finance market that have created ‘a favourable environment for leasing and sales’ are evident - short supply of new aircraft, new technology engine issues and strong airline demand for aircraft. While 2025 will see a big improvement in overall narrowbody deliveries (and American Airlines return to the EETC market is a sign of this improvement) thanks to a normalisation of Boeing’s operations, widebody deliveries, as highlighted by AerCap’s Aengus Kelly, are subdued and will likely remain so for some time.

Leasing Business

AerCap ups guidance after another robust quarter

AerCap raised its profit guidance for the full year following another quarter of strong growth, including a new record adjusted net income and earnings per share, which CEO Aengus Kelly said was aided by 'the continued favorable environment for leasing and sales.' Speaking on the lessor's Q3 performance Kelly also gave his insights on the widebody market, AerCap's disciplined approach to M&A and why share repurchases (it has made c.$2 billion in the first three quarters) remain a favoured avenue of capital deployment for the lessor.

Financing

Avation 'resets near-term maturities' with unsecured issuance

Avation PLC is 'back to a stable growth mode' according to executive chairman Jeff Chatfield with the lessor about to reset its near-term debt maturities through a priced $300m unsecured notes issuance, which is a key part to optimising the company's capital structure. Meanwhile, American Airlines is returning to the EETC market with a $1.1 billion deal while TAP Air Portugal have gone down the JOLCO route for the first time in over 20 years to finance a new Airbus A321neo.