Aircraft Leasing Market

Aircraft Leasing Market Research, 2032

Aircraft Leasing Market size was USD 158.99 billion in 2021 and projected to grow from USD 186.3 billion in 2023 to USD 385.0 billion by 2032, exhibiting a CAGR of 8.4% during the forecast period.

Aircraft Leases are the leases used by the airlines and other airplane operators. Airlines lease airplanes from the leasing businesses or other airlines to operate aircraft without financial burden of purchasing them and to temporarily enhance capacity. There are many kinds of leases like wet leases, damp leases, and dry leases, depending on the needs and various tax and income concerns by the lessee.

Market Highlights

Aircraft Leasing Market is expected to project a CAGR of 8.4 % during the forecast period, 2022-2032

Aircraft Leasing Market is expected to reach USD 385.0 billion, growing at a CAGR of 8.4% during the forecast period owing to the growing demand air passengers, increasing disposable income of consumers, and rise in the international tourist travel. Also, the rising airport infrastructure is expected to boost the growth of Aircraft Leasing Market in future.

Aircraft Leasing Market Segmentation:

Narrow Body segment is expected to dominate in the forecast period

Aircraft Leasing Market is classified based on the Aircraft Type into Narrow Body, Wide Body, and Regional Aircraft. The Narrow Body segment held a major share in 2021 and is projected to lead over the forecast period as well. The growth is supported by the increase in global demand for narrow-body aircraft. LCCs and budget airlines in the airline business are mainly responsible for the increased demand. Furthermore, since the newest generation of aircraft can now fly lengthy routes, full-service airlines are aiming to increase the size of their fleets of narrow-body aircraft. This will ultimately propel the market with bigger numbers over the predicted period.

Dry Lease segment is expected to dominate in the forecast period

Aircraft Leasing Market is classified based on the Lease Type into Wet Lease, Dry Lease, and Damp Lease. The Dry Lease segment is anticipated to witness considerable growth during the estimated period. The segment growth is attributed to the reduced maintenance and operating expenses of dry-leased aircraft. In case of dry lease, the lessor hands over the plane to the lessee unmanned; as a result, the lessee is responsible for all maintenance and operational costs. Since the lessee or airplane operators completely control the finance, they implement multiple cost-cutting tactics to make aircraft operation and maintenance inexpensive. Though it is assumed that dry leasing is ideal for the bigger airlines, dry leasing is more often used by budget and low-cost airlines.

Market Dynamics:                                                    

Growth Drivers

Advantages of Leasing Aircraft in place of Purchasing is Expected to Boost the Market Growth

There are five primary benefits of leasing an airplane rather than purchasing one. These include lower maintenance costs, fleet uniformity, quick growth, flexible capacity, and financial liquidity. In its earliest form, leasing enables airlines to pay off debt. This enables improved cash flow and increased financial flexibility. In order to operate the aircraft without the financial burden of acquiring them and to temporarily enhance capacity, cargo and airline operators lease airplanes from leasing businesses or other airlines. The growth of low-cost airlines is a key element in the growth of the Aircraft Leasing Market.

Rising Developments in Airport Infrastructure is Expected to Boost the Market Growth

As airport infrastructure in emerging nations continues to expand, the need for aircraft leasing is rising. To ensure that airport development initiatives provide affordable, adaptable facilities that can meet the needs of airline operations and customer experience, (IATA) International Airport Transport Association collaborates closely with airport authorities, airlines, design consultants, and regulators.

Restraint

Improper Awareness Regarding Installation Costs May Restrain the Market Growth

The inability to identify and keep recently rented aircraft in the proper location is a big issue for aircraft lessors due to the lack of contemporary airport infrastructure. One important criterion for the lessor or investor wishing to invest in the Aircraft Leasing Market is the availability of well-run airports. Due to airport infrastructure and the need for new aircraft, the improvements and developments to the airfield are much needed.

Recent Developments:

• The leasing arm of (DAE) Dubai Aerospace Enterprise Ltd, DAE Capital, said in July 2021 that it has inked contracts to sell nine thin and wide body aircraft with a collective market value of above USD 500 million.
• The international aircraft lessor located in Dublin, Goshawk Management Ltd, and related corporate assets were acquired by SMBC Aviation Capital in December 2022, according to an announcement made at the time. With the acquisition, it became the biggest Japanese-owned airplane lessor and the second largest global participant in terms of aircraft.

Aircraft Leasing Market :Key Players Covered

• Sumitomo Mitsui Finance
• CIT Aerospace Inc.
• Dubai Aerospace Enterprise
• Avolon
• International Lease Finance Corporation
• BOC Aviation
• Nordic Aviation Capital
• SMBC Aviation Capital
• Boeing Capital Corporation
• BBAM
• Air Lease Corporation
• Goshwak Aviation Limited
• TrueNoord
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Aircraft Leasing Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Owing to the growth of the aviation sector, the market is expected to dominate in the United States. The general aviation industry in North America may experience growth over the next several years as a result of the growing emphasis on enhancing the development of private airports and beneficial regulatory improvements.

Aircraft Leasing Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Aircraft Leasing Market Scope and Segments:

Frequently Asked Questions (FAQ):