Aviation Finance

Aviation Finance Vol. 16 No 04, February 19th 2026. ISSN 2009-7859

Tokenisation

Pioneering jet engine-backed investment product launches

A new digital token, Eurus Aero Token I, aims to give investors exposure to on-lease aircraft engines in what its creator calls a ‘first-of-its-kind’ investment instrument. ETHZilla Corporation, a fintech that focuses on developing digital infrastructure to enable real-world assets to be traded on blockchain technology, has formed a new entity, ETHZilla Aerospace, as a home for its new tokenised aviation asset strategy. The first token is backed by two CFM56 engines on lease to an unnamed US carrier.


Leasing Business

AerCap ups dividend following record income in 2025

AerCap, the world’s largest lessor, is amongst latest firms to reveal record performance for 2025 reporting record net income and record earnings per share and announcing it was increasing its quarterly dividend by $0.10 to $0.40. The other major listed lessor for now, Air Lease, reported record quarterly and yearly revenue figures as it prepares for the closing of the Sumitomo Corporation-led deal that will take it private while Avolon and DAE have also reported strong performance.


Taxation

WHT on leases creates ‘adverse economic consequences’ for global aviation

The Aviation Working Group has highlighted the negative impact the imposition of withholding taxes (WHT) on aviation leases has on the commercial aviation industry. In calling for no WHT to be imposed on cross-border commercial aircraft or aircraft engine lease transactions, AWG says that it is international best practice, avoids adverse economic consequences and levels the playing field among airlines and jurisdictions.

 
In this issue

In this issue

In this issue we look at lessors’ performance as a number of the larger player revealed their figures for 2025 AerCap and Air Lease (ahead of its acquisition by a Sumitomo Corpration-led consortium) both posting impressive figures. The sector continues to attract outside capital as highlighted by BlueFive Capital’s new initiative. We also look at one of the early instances of the tokenisation of aviation assets and highlight the AWG’s recent policy position regarding the WHT in the aviation sector.


Leasing Business

New leasing platform targets over $1 billion for debut fund

A new aircraft leasing platform has been launched by Abu Dhabi-based alternative investment manager BlueFive Capital which aims to capitalise on the robust growth of air travel across the Middle East, Asia and Africa. The platform, BlueFive Leasing, is based in Muscat, Oman and adds to the Gulf region’s growing presence in the aviation finance space.


Aviation ABS

Marathon, Castlelake and World Star in ABS deals

The aviation ABS market is seeing strong issuance in the opening weeks of 2026, maintaining the strong trend in issuance seen for most of 2025. Amongst the latest deals is a converted freighter-backed deal from World Star and two mid-life deals. This brings to six the number of aviation ABS issuances, including one aviation loan ABS, so far in 2026 with an issuance value above $4 billion.