- Latest edition May 14th: Spirit complications
- April 30th: Demand for aviation assets solid despite airline industry challenges
- April 16th: Sumisho ALC gets off the ground
- 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
Airline Business Spirit closure throws up new complications for lessors
Leasing Economics Fallout from Iran conflict clouds leasing sector outlookFitch Rating’s 2026 mid-year outlook for global aircraft lessors has been revised to Deteriorating from Neutral with the credit rating agency saying 'downward revision primarily reflects geopolitical headwinds arising from the ongoing Iran conflict and the potential effect of higher fuel costs on travel demand and airline credit profiles' but despite this increasingly dim view says sector dynamics continue to support aircraft lessors. Aircraft Financing Novus Aviation Capital launches two aviation fundsThe Dubai-headquartered aircraft financier and manager has launched two funds in recent weeks, both of which are the third iterations of their type. Tamweel Aviation Finance III is its third secured second lien debt fund dedicated to the financing of Airbus aircraft and Ortus Aircraft Leasing Fund, L.P. III operating leasing funds focused on acquiring leased Airbus and Boeing aircraft. The launch of the funds extend Novus' collaborations with Development Bank of Japan (TAF III) and Sumitomo Mitsui Trust Bank (Ortus III). |
In this issue In this issueIn this issue we look at the impact of the collapse of Spirit on the former airline's lessors as well as the exposure of aircraft ABS deals. While Spirit's 2025 bankruptcy only acted to stagger the pain for its leasing partners, the total failure of the airline so soon after exiting Chapter 11 adds major complications for lessors looking to secure maintenance slots to re-lease returning aircraft. We also feature Fitch's latest peer review of aircraft lessors and its view that the market for lessors is deteriorating as airlines (such as Spirit) come under increasing cost pressures. Elsewhere we see that confidence remains in the aviation finance sector as demonstrated by BOC Aviation's latest issuance and we include an update on Sumisho Air Lease's integration and business strategy. Leasing Business Sumisho's Swan: 'Scale is the key differentiator'
Lessor Financing BOC Aviation taps market with Renminbi issuanceBOC Aviation Limited has issued CNY 2 billion fixed rate notes demonstrating its ability to access renminbi funding, diversifying its funding sources and further boosting the lessor's liquidity following major financing deals in Q1. |
With Spirit Airlines' ceasing operations on 2nd May we look at the impact the airline's closure has on lessors as well as the exposure of aircraft ABS deals. The airline operated a fleet of A320 family aircraft, split between current and new technology iterations - of the total of 114 aircraft in its fleet at the cessation of operations it only owned 28, with 20 aircraft under agreement to be sold under a previously approved deal and the balance of 66 aircraft under lease agreements. This latest development follows quickly on from Spirit having previously handed back 114 aircraft to lessors in relation to its August 2025 Chapter 11 bankruptcy, which complicates the path and timeline for these latest aircraft to be re-leased.
The take private of Air Lease Corporation closed on 8th April and with the now renamed Sumisho Air Lease Corporation under new ownership and management the firm used its Q1 investor call to provide an update on the ongoing integration process so far, it plans to manage the platform's portfolio and give background and insight into its business strategy, which includes focusing on deleveraging and portfolio optimisation in 2026. It says it also plans to take advantage of the strong aircraft trading market to reduce debt, noting it has $4.6 billion of aircraft sales under letter of intent.