- Latest edition December 11th: Year in Review
- Latest edition November 27th: Solid business in Dubai
- Latest edition November 13th: Headwinds and tailwinds
- Latest edition October 30th: Quarterly reports show strength of market
- Latest edition October 16th: ABS issuance has a strong start to Q4
- Latest edition October 2nd: ABS issuance fully regains early year momentum
Airline Business Airline profits to reach $41 billion in 2026IATA's 2026 Global Outlook for Air Transport forecasts total airline industry net profits to reach $39.5 billion for the whole of 2025 and reach a new record of $41 billion in 2026. Net profit margin across the industry is expected to be 3.9% for 2025 and unchanged for 2026, while the net profit per passenger for both years is expected to be $7.90. Despite the growth in net profits the industry will continue to fail to generate earnings that cover its cost of capital, the figures show. Leasing Business AerCap rounds off a record year with new share buyback authorisation
Aviation ABS Willis Lease's engine ABS to bring issuance past $10 billionWillis Lease's latest aviation ABS transaction will be the 16th deal in 2026 and, when closed, the c.$400m deal will see total aviation ABS issuance for the year exceed $10 billion. Willis Engine Structured Trust IX (WEST IX) is backed by a pool of 47 aircraft engines and two airframes and looks likely to round out one of the biggest years for aviation ABS issuance. |
In this issue In this issueIn this issue we review the major themes of 2025 such as the big M&A moves and the health of the ABS market. IATA's forecast for 2026 also features with the airline industry expected to have a record year for profits, but still unable to cover its cost of capital. On the ABS front Willis Lease's plans for its 10th ABS transaction is set to see aviation ABS issuance exceed $10 billion for 2025, while we also analyse AerCap's continued use of share repurchases. Aviation Business Aviation Finance: The Year in Review
OEM Business Spirit AeroSystems deal closes while Airbus lowers 2025 delivery expectationsOne of the significant moves to resolve aircraft supply chain and quality issues has closed with Boeing having just finalised the acquisition of Spirit AeroSystems’ Boeing-related commercial operations. The ‘pivotal’ deal comes as commercial aircraft deliveries have recovered strongly, driven by increased deliveries from Boeing, but Airbus’ early December announcement to reduce its 2025 delivery target as a result of a quality issues illustrates the difficulties that still face the supply chain. |
The latest share repurchase programme for AerCap, authorised by its board on 2nd December, comes as the very favourable operating conditions for aircraft lessors, especially those with large OEM orders and near term delivery slots, show little signs of deteriorating despite the aircraft and engine OEMs making progress on the supply side throughout 2025. The lessor had completed over $2 billion of share buybacks in 2025 up to the end of October 2025.
The major trends and key moves in the aviation finance sector in 2025 included M&A moves that are reshaping the competitive landscape in aircraft leasing, the growth in ABS issuance, new aviation funds and the continuing tailwinds for the aircraft leasing model, as seen through record operational and financial performance across the major lessors.