- Latest edition July 23rd: Aviation ABS issuance has already surpassed the prior full-year record for 2025.
- July 9th: 10 billion annual air passengers by 2045
- June 25th: Mid-life aircraft opportunity
- June 11th: Airline profits to slide
- May 28th: Retirement rates and increased deliveries
- May 14th: Spirit complications
Aviation ABS: First Half Report 2026 Frequent issuer miles: why aviation ABS keeps taking off
Aircraft Supply Farnborough 2026: a quantitative and qualitative assessment
Aircraft Orders & Options SMBC AC orders 200 aircraft, 90 CFM Leap engines, making it lead buyer at Farnborough 2026SMBC Aviation Capital, one of the leading aircraft leasing and aviation finance platforms, announced landmark agreements with Airbus and Boeing for a total of 200 narrowbody aircraft, alongside a contract with engine manufacturer CFM International covering up to 90 LEAP 1-A engines, making it the lead buyer at the 2026 Farnborough International Airshow. |
In this issue In this issueIn our first issue of 2026 we were one of the first to report that global aviation ABS issuance had, in 2025, returned to the previous peak levels of 2019, following the aviation ABS issuance 'winter' of the Covid years, 2020-2023. Now, we are pleased to report that ABS issuances have pushed ahead again, and that, year to date, already, ABS issuance has in the first half of the year alone pushed ahead of the total for last year. The figures are contained in Alan Greenblatt, managing director, KBRA's article published in this issue of Aviation Finance. KBRA are one of the leading authorities in aviation ABS issuance, one of the two foremost rating agencies in the area, and accordingly able to compile the data on a deal-by-deal basis, based on pre issuance, pre sale reports. Aviation Finance Aviation Finance at Mid-Year: Why Investor Confidence Endures
Aircraft Financing Monroe's inaugural $643m ABSMonroe Capital LLC ("Monroe"), a premier asset management firm specializing in private credit markets, and AIP Capital ("AIP"), a global multi-strategy investment manager focused on opportunities in asset-based finance, on July 20th announced the successful closing of MCAV 2026-1 ("MC Aviation"), a $643.0 million aircraft asset-backed securitisation, an inaugural transaction issued through the firms' aviation leasing venture. MCAV 2026-1 is secured by a diversified portfolio of 18 commercial aircraft leased to 12 airline operators across 10 jurisdictions with an aggregate appraised value of approximately $739 million. The transaction represents a significant milestone for the Monroe-AIP aviation leasing venture, launched in 2025 to build a diversified global aircraft leasing portfolio combining Monroe's investment capabilities with AIP's aviation asset management and servicing expertise. |
Aviation ABS activity has already surpassed the prior full-year record, with 18 transactions representing more than $12 billion closed or in the market as of middle of July 2026, compared with approximately $10 billion across 16 transactions in 2025. Given the substantial volume already completed or launched, KBRA does not expect issuance in the second half of 2026 to match the pace of the first half. However, current market activity and the expected pipeline support full-year (FY) 2026 issuance exceeding $15 billion. Alan Greenblatt, managing director, KBRA, writes.
An assessment of commercial aircraft orders at the Farnborough International Airshow 2026 compared against historical totals from recent major airshows reflects a continuation of the major trends seen in recent months, and indeed years, as an increased significance in the sector of lessors, particularly major lessors, was evident, alongside continued capacity constraints amongst the major manufacturers, Boeing and Airbus.
While the overall order volumes did not match some of the more optimistic expectations, caution prevailing over order exuberance - reinforced perhaps by continued geopolitical uncertainty about the Gulf.
The first half of 2026 has once again demonstrated the resilience of the aviation finance sector. Despite heightened geopolitical tensions, including conflict in the Middle East and associated volatility in energy markets, aviation finance capital markets have remained open, investor appetite has stayed strong and aircraft asset values have largely held firm, Niamh Tobin, partner, EY, writes.