- Latest edition April 30th: Demand for aviation assets solid despite airline industry challenges
- April 16th: Sumisho ALC gets off the ground
- April 2nd: Jet fuel prices and airline hedging strategies
- March 19th: Air travel to more than double by 2050
- March 5th: DAE to acquire Macquarie AirFinance
- February 19th: Lessors report record 2025 performance
Leasing Business DAE: 'business as usual' for leasing divisionDubai Aerospace Enterprise has reported strong figures for the first quarter of 2026 with the highlight being the agreement to acquire Macquarie AirFinance as well as a ratings upgrade. CEO Firoz Tarapore says at its leasing division, DAE Capital, it is 'business as usual' but the company's engineering division has seen some impacts due to the conflict in the Gulf region. Looking at the impact of the conflict on aircraft trading, Tarapore says they have seen no shift in sentiment in the market. Aircraft Financing American Airlines taps back into the EETC market
Aircraft ABS Aircraft ABS issuance gets back into full swing despite ongoing conflict and fuel supply concernsSky Leasing has brought its latest aircraft ABS issuance to the market. The deal comes on the back of Castlelake’s and Altavair’s recent successful issuances, and indicates that despite the ongoing conflict in the Middle East and the disruption to global oil supplies, investor demand for aviation assets is solid. Castlelake was the first to test the market since the beginning of the US/Israel attacks on Iran, and the resulting closure of the globally crucial petrochemical sea corridor, in mid-April. This was quickly followed by Altavair’s deal and the move by Sky Leasing underlines issuer confidence in the market. |
In this issue In this issueWhile the standoff in the Middle East persists the outlook for airlines' fuel costs remains bleak and in this issue we feature new research on the impact the oil price shock is having on carriers, in the Gulf, and around the world. The leasing sector, for now, remains insulated from the immediate troubles being faced by the airline industry judging by commentary from leasing leaders in their quarterly updates, while acknowledging anything but a quick resolution to the Middle East conflict risks major worries for the financial health of the the global airline industry. Despite these concerns, demand for exposure to aviation assets remains solid, as seen through the latest ABS issuance and American Airline's EETC issuance. Leasing Business AerCap posts another record quarter
Aviation Business Middle East impact on airlinesCommentary from leading aviation finance executives about how airline clients are responding thus far to the fallout caused by the de facto closure of the Strait of Hormuz, shows the huge disruption caused by the jump in jet fuel prices has not yet resulted in any material long-term fleet strategy changes, new research from IBA gives deep insight into the current, uneven, impact on global airline operations. |
American Airlines’ latest EETC issuance comes at a time of huge uncertainty around the short and medium term operating environment for the global airline industry amidst the jump in jet fuel prices and underlines the attractions of the structure for airlines, especially weaker credits, and investors. The $1.14 billion deal is set to fund the delivery of 17 new aircraft and is additionally backed by 15 older aircraft. It follows on from American's October 2025 EETC issuance used to finance 25 aircraft deliveries.
Despite the challenging economic backdrop and the fuel price shock being experienced by the airline industry AerCap reports that demand for aviation assets is robust, supported by persistent aircraft supply challenges and sustained consumer demand for air travel. CEO Aengus Kelly said leasing sector is well-placed to cater to airline financial needs in the case of pro-longed, elevated fuel prices but that such a scenario would be a net negative for the sector. The lessor reported record adjusted net income of $889 million or net income of $818 million, upped its EPS guidance and also announced another $1 billion share repurchase programme.