Commercial Aircraft Leasing Market

Commercial Aircraft Leasing Market Size

Commercial Aircraft Leasing Market size was USD 38.62 billion in 2021 and is projected to grow from USD 44.3 billion in 2023 to USD 82.7 billion by 2032, exhibiting a CAGR of 7.2% during the forecast period.

Commercial Aircraft Leases are widely used by airlines and most other aircraft operators. Aircrafts are leased by airlines either from other airlines or by leasing firms for two major reasons: to operate aircraft without the financial strain of purchasing them and to temporarily enhance capacity. The industry usually uses a combination of both leasing types. Wet lease is used for shorter-term leases, and dry lease is used for longer-term leases.

Market Highlights

Commercial Aircraft Leasing Market is expected to project a CAGR of 7.2 % during the forecast period, 2022-2032

Commercial Aircraft Leasing market is expected to reach USD 82.7 billion, growing at a CAGR of 7.2% during the forecast period owing to the increasing economically priced aircraft, rising traffic of air passengers, and expanding air freight volume. Also, ongoing improvements in airport and aircraft infrastructure, particularly in emerging countries is fuelling the Commercial Aircraft Leasing Market.

Commercial Aircraft Leasing Market Segmentation:

Dry Leasing segment is expected to dominate in the forecast period

Commercial Aircraft Leasing Market is classified based on the Leasing Type into Dry Leasing and Wet Leasing. The dry lease segment is projected to hold a major growth during the estimated period. The segment's expansion is attributed to the reduced maintenance and operating expenses of dry-leased aircraft. In a dry lease, the lessor gives the aircraft to the lessee with no crew, hence the lessee is responsible for all operational and maintenance expenditures. Since the airline operators or the lessee have complete control over the financial element, they employ several cost-cutting strategies to make aircraft maintenance and operation affordable.

Wide-Body Aircrafts segment is expected to dominate in the forecast period

Commercial Aircraft Leasing Market is classified based on the Aircraft Type into Narrow-Body Aircrafts, Wide-Body Aircrafts, and Others. The narrow body segment registered a major share in 2021 due to its increased demand. However, due to the increasing air traffic of passenger on international routes, the wide-body aircraft market is anticipated to have considerable growth. The newly made wide-body aircraft can currently fly for up to 15 hours nonstop and are efficient. In addition, due to the costly aircraft, airline operators chose to lease them rather than buy them since it provides a consistent cash flow at a low operating cost.

Market Dynamics:                                                    

Growth Drivers

Growing Number of Aircrafts and Budget Airlines Globally are Expected to Boost the Market Growth

One of the key drivers of the Commercial Aircraft Leasing Market is the rising number of low-cost carriers and budget airlines in the world. To keep the cost of maintenance and operation to a minimum, many airline operators prefer to lease each aircraft in their fleet and return or lease out the aircraft after some years. These airlines have been connecting every urban and rural area in their registered nations due to increasing passenger air traffic on domestic routes.

Considerable Growth in Urban Air Mobility Solutions is Expected to Boost the Market Growth

Solutions for Urban Air Mobility, aka UAM are designed to lessen the environmental impact while increasing the effectiveness of transportation in urban and interurban settings. Unmanned Aerial Mobility (UAM) will provide enticing mobility-on-demand options at the urban, suburban, and interurban levels in addition to the expenses and time saved by airborne solutions. The development and deployment of effective, secure, sustainable, and integrated air mobility systems over major urban regions will be addressed using novel approaches to unmanned aerial mobility. This will ultimately impact the growth of Commercial Aircraft Leasing Market positively.

Restraint

Lack of Modern Airport Infrastructure to 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 advanced airport infrastructure. One important prerequisite for the lessor or investor willing to invest in the aircraft leasing market is the availability of effective airports. Infrastructure at airports, the demand for new aircraft necessitating airfield upgrades, and market expansion will impede market growth.

Recent Developments:

• AerCap Holdings stated in July 2022 that it ordered five more Boeing 787-9 Dreamliners, increasing the total number of 787 aircraft ordered by AerCap to 125, both owned and under order. In aircraft leasing industries and the airline, the 787 Dreamliner family is vital to maintaining and reopening new long-distance routes with excellent fuel efficiency.
• BOC Aviation Limited stated in April 2022 that it signed a contract with Airbus S.A.S. to buy 80 brand-new Airbus A320NEO group aircraft. Delivery of each aircraft is anticipated to take place between 2027 & 2029.
• The leasing arm of Dubai Aerospace Enterprise (DAE) Ltd, DAE Capital, said in July 2021 that it inked contracts to sell nine wide-body and narrow aircraft with a complete market value of over USD 500 million.

Commercial Aircraft Leasing Market Key Players Covered:

• Boeing Capital Corporation
• Dubai Aerospace Enterprise (DAE) Ltd.
• AerCap Holdings N.V.
• Avolon Aerospace Leasing Ltd
• Alliance Airlines
• SMBC Aviation Capital
• BOC Aviation Limited
• Avion Express
• BBAM Aircraft Leasing and Management
• Aviation Capital Group Corp.
• Macquarie AirFinance
• ALAFCO Aviation Lease and Finance Company
• AviaAM Leasing
• 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

Commercial 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. In 2021, Europe dominated the market for leasing aeroplanes. The existence of a significant player named Aercap is credited with the area's expansion. Due to Ireland's favourable tax structure and business-friendly environment, most lessors are settled there. Nevertheless, the Asia Pacific market is anticipated to reach new heights of growth during the projection period due to the expanding aviation and airline sectors in nations like China and India.

Impact of Covid-19 on Commercial Aircraft Leasing Market

Most regions experienced lockdown due to the escalating COVID-19 instances, which briefly suspended several aviation industry operations. The virus's spread has significantly affected the earnings of airlines and businesses that lease aircraft. It is obvious to expect large losses among lessors and airline businesses. The substantial capital outflow brought on by the grounding of these airplanes led to huge losses for airlines that have leased a sizable portion of their fleet.

Commercial 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

Commercial Aircraft Leasing Market Scope and Segments:

Frequently Asked Questions (FAQ):