Aviation Finance

Aviation Finance Vol. 15 No 09, May 1st 2025. ISSN 2009-7859

Leasing Business

AviLease reaches investment grade milestone

Avilease, the global aircraft lessor headquartered in Saudi Arabia has received investment grade corporate credit ratings from credit rating agencies Moody's and Fitch. CEO Edward O'Byrne said gaining investment grade ratings was a goal for the lessor since its establishment and that the acquisition and integration of Standard Chartered Aviation has accelerated the strategy by at least two years. 'From day one, AviLease was set up with an investment grade profile in mind.'

Leasing Business

AerCap raises annual guidance after strong opening quarter

The lessor has raised its full-year adjusted earnings per share guidance to $9.30 - $10.30, which takes into account its Q1 gains on sales, and revealed that it spent $445 million on share buybacks in April to take advantage of market volatility. The lessor also announced a new $500 share repurchase programme as its business continues to benefit from strong demand for aviation assets.

Leasing Business

Avolon lease revenue up 10% in Q1

Avolon enjoyed record lease revenue levels in the first quarter of 2025 and year on year lease revenue growth of 10% as it integrates the over 100 aircraft added to its owned fleet following the closing of the Castlelake Aviation Limited acquisition in January 2025. The lessor also added to its funding mix with a new $1.1 billion unsecured loan facility which saw it add seven new lenders to its banking pool.

Developments

Aircastle records 48% net income growth for FY 2024; SKY Leasing's latest fund

Aircastle records 48% net income growth for FY 2024; SKY Leasing raises $1.35 billion for its latest fund; NAC deal highlight of 'outstanding' Q1 for DAE Capital; Aviation Capital Group agrees 20 aircraft deal with Avolon; Ashland Place completes financing facilities for Sirius Aviation Capital; Willis Lease closes more JOLCO deals; SMBC Aviation Capital agrees five jet sale/leaseback deal with Arajet; Saudia orders 10 Airbus A330neo aircraft; BOC Aviation agrees five lease deal with Thai.

  
In this issue

In this issue

As tariffs on aircraft continue to cast a shadow on the aviation finance industry, we look at some of the latest developments in this issue including a hardening of Ryanair's stance towards possible tariff-induced price increases on Boeing aircraft as well as AerCap CEO Aengus Kelly's hopes that a 40 year old WTO agreement could be expanded to more countries and put the aviation finance industry in a better place than before. Lessor performance continues to impress with those of AerCap, Avolon, Aircastle and DAE Capital analysed in this issue while Saudi Arabia's AviLease reaches a new milestone.

Aviation Business

Expansion of WTO civil aircraft agreement would be a win-win for global aviation

While there remains a great deal of uncertainty for the aviation industry on aircraft tariffs there remains a possibility that the current trade disputes between the US and its trade partners, especially China, could result in a wider tariff-free trade area for commercial aircraft than before. AerCap CEO Aengus Kelly outlined his company’s exposure to the increased tariffs and how a positive end result for all sides in the current trade spat could be major markets, including China and India, being brought into the long standing plurilateral WTO agreement on trade in civil aircraft.

Airline Business

Boeing price increases would make Ryanair reassess current orders

The CEO of Europe's largest airline has doubled down on his position that his airline will consider buying the Chinese-made COMAC C919 if the United State's 'ill-judged' tariffs make Boeing aircraft more expensive. Ryanair CEO Michael O'Leary in a letter to US Lawmaker Raja Krishnamoorthi said an increase in prices of Boeing aircraft would see the airline 'reassess' its current orders with the OEM. Ryanair is one of Boeing biggest customers.

Aircraft Values

IBA: old technology narrowbody values still rising

The values of previous generation aircraft, and particularly the Airbus A320-200 and the Boeing 737-800, remain robust according to latest research from aviation consultancy IBA. Hashen Hewawasam, IBA’s Head of Commercial Aircraft Valuation, says the valuations are being driven by the continuing undersupply of narrowbody aircraft as a result of supply chain delays, engine reliability and maintenance cost inflation.