- Latest edition 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
- February 5th: Deliveries to reach $120 billion in 2026
- January 22nd: Two deals open 2026 ABS market
Credit Ratings Avolon and DAE rewarded for enhanced scaleAvolon and DAE have had their credit ratings upgraded by global ratings agency KBRA in recognition of the increased scale, growing market share, fleet quality, customer diversification and growing franchises of the businesses. DAE especially has added scale to its business in the last 18 months, most recently reaching an agreement to buy Macquarie AirFinance, while Avolon is closing in on becoming the fourth aircraft lessor with a 1,000+ aircraft portfolio. Airline Business The Middle East impact and airline hedging strategies
Aviation Sustainability IATA calls for the EU's emissions trading system (ETS) to be reviewed as it cites 'growing skepticism' among EU leaders about it
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In this issue In this issueAs the oil market experiences ever greater potential disruption as the Iran was continues, we look at how this is currrently impacting airlines and fuel hedging, which is now seen as 'a differentiator, not the norm' in the industry. A change in balance sheet strategy at AerCap in relation to OEM orders also features as do the recent credit upgrades for Avolon and DAE, both rewarded for, amongst other things, their increased scale and growing market shares. Leasing Business: AerCap changes course with new Airbus order
Leasing Business UK Supreme Court rules in favour of bank in Russia-linked letters of credit appeal
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The conflict in the Middle East has resulted in what the International Energy Agency (IEA) describes as the largest disruption in the history of the global oil market as the amount of crude oil and other refined products passing through the crucial Strait of Hormuz falling from around 20 million barrels per day to a trickle. The implications for airline’s input costs are stark with jet fuel prices jumping and leaving airlines around the globe, and especially those who do not hedge their fuel, facing increased margin pressures while travel disruption across the region will also hit unit costs at affected carriers.
IATA has called for a review of the European Union’s Emissions Trading System (EU ETS) to boost the bloc's competitiveness while enhancing European air connectivity and economic resilience. To do this IATA recommends the full implementation of CORSIA, the establishment of a book-and-claim system for SAF, reinvestment of more of the proceeds of the EU STS into the aviation industry's transition and the pursuit of a balanced climate policy that safeguards the competitiveness of the Europe's air transport industry.
The lessor's decision to place its first direct Airbus OEM order since 2017 is linked to its agreement earlier agreement with Spirit Airlines, as well as it more recent agreement with Frontier Airlines, and signals a change in its balance sheet strategy. In recent years the lessor has preferred to return capital to shareholders (through the establishment of a quarterly dividend and a series of significant share buyback programmes) in favour of expanding its order backlog. This latest order, for 100 aircraft, also includes a major engine element for SES, AerCap's engine leasing JV with Safran Aircraft Engines, with AerCap CEO Aengus Kelly saying the deal will drive its long-term growth.
In a case related to the Russian 'stranded' assets episode the UK Supreme Court has delivered its ruling on the effect of sanctions law on a bank's duty to pay under letters of credit.