Commercial Aircraft Leasing Market Forecasts to 2028 – Global Analysis By Leasing Type (Wet Leasing and Dry Leasing ), Aircraft Type (Narrow-Body, Wide-Body and Other Aircraft Types), Security Type (Asset-Backed Security (ABS) and Non-Asset-Backed Securit

Commercial Aircraft Leasing Market Forecasts to 2028 – Global Analysis By Leasing Type (Wet Leasing and Dry Leasing ), Aircraft Type (Narrow-Body, Wide-Body and Other Aircraft Types), Security Type (Asset-Backed Security (ABS) and Non-Asset-Backed Security (Non-ABS)) and By Geography

According to Stratistics MRC, the Global Commercial Aircraft Leasing Market is accounted for $52950.43 million in 2022 and is expected to reach $71365.09 million by 2028 growing at a CAGR of 5.1% during the forecast period. Airlines and other operators of aircraft employ aeroplane leases. In order to operate aircraft without the financial burden of purchasing them and to temporarily enhance capacity, airlines lease aircraft from other airlines or leasing businesses. Various benefits such as financial liquidity, capacity flexibility, rapid development, fleet consistency and reduced maintenance costs are driving the commercial aircraft leasing market

According to the Bureau of Transportation Statistics, airline carriers in the United States carried 46.3 million scheduled service passengers in January 2022 which was more by 33.2% than January 2021.

Market Dynamics:

Driver:

Increasing in the number of air passengers

Substantial growth factors in the business include the significant rise in air travel globally, the increasing amount of goods, and development frameworks in airport facilities and aircraft, especially in developing countries. Furthermore, as aircraft leasing provides tax and balance sheet benefits, its demand is anticipated to increase even more in the years to come. Moreover, the demand for air travel has risen as a result of the advancement in economic circumstances in international economies. The quantity of aircraft flying hours has increased as a result of the rise in demand for air travel.

Restraint:

Fall in the price of crude oil

Reductions in fuel prices can enable airlines to save significant amounts on their operating expenses. Aeroplanes use jet fuels primarily derived from crude oil, commonly known as liquid petroleum. Organic materials found in shale, namely petroleum solids or kerogen are the sources of jet fuel. Manufacturers then use heat to convert these into shale oil. The increasing crude oil price has been lowering the price of aviation, which is hindering the market.

Opportunity:

Increasing industrial export trading

Recent developments in the aviation industry include expanded export in industrial goods, improvements to airport infrastructure in emerging economies, and globalisation. The top companies in the aeroplane leasing market have access to a variety of attractive options as a result of these considerations. The Advancement in aircraft & airport infrastructure, and rise in urban air mobility (UAM) solutions are the factors that offer opportunity for the growth of the commercial aircraft leasing market.

Threat:

Government Rules and Taxation Policies

Over the coming years, it is expected that the increasing number of stringent and unclear leasing taxation laws and regulations would have a significant adverse impact on the worldwide leasing sector. Another difficult factor in the market for aircraft leasing is the substantial asset recovery risk associated with airline bankruptcy. In addition, reduced rates of leasing commercial aircrafts and volatility of fuel price limit the growth of the commercial aircraft leasing market.

Covid-19 Impact

The global aviation sector has been negatively impacted by the COVID-19 outbreak. The COVID-19 epidemic, containment procedures, and travel limitations affected how customers behaved, which significantly reduced interest for airline services and hampered the expansion of the aviation industry. COVID-19 instances, which temporarily interrupted air travel, production, the supply of raw materials, and the delivery of aeroplanes, was the cause of the lockdown thus hampering the market growth.

The wet leasing segment is expected to be the largest during the forecast period

The wet leasing segment is estimated to have a lucrative growth, due to its added advantage of eliminating direct operating costs that are usually the responsibility of the lessor, depending on the leasing arrangements. No need for the lessee to recruit its own crewa and provide flexibility to match demand during peak traffic. Furthermore, Airlines often turn to wet leasing when they want to ensure smooth operations during peak times, to deal with unexpected delays or maintenance, or as a means of testing new routes thus, boosting the market growth.

The asset-backed security segment is expected to have the highest CAGR during the forecast period

The asset-backed security segment is anticipated to witness the fastest CAGR growth during the forecast period, due to ability to protect from potentially risky loans, provides an alternative and more stable investment vehicle and also reduces default risk and other credit risks. Asset-backed securities are essentially pools of smaller assets held by various financial institutions, such as banks, credit unions, and other lenders. By selling the assets through asset-backed securities, they are also able to gain a new source of funding that can be used to issue more loans or for other business purposes. Hence all the above factors are encouraging the market growth.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the rising focus on improving the infrastructure of private airports, combined with positive regulatory reforms, may support the general aviation sector in Asia Pacific to grow in the coming years. Moreover, the market has also benefited from the rising demand for fuel-efficient aircraft and the explosive growth in regional air traffic. The expansion of leasing vendors, infrastructural improvements, advantageous tax laws, and the accessibility of lease rates could all contribute to the market's growth rate in this region.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to due to the growing requirement for cost-effective aircraft operation and the quick development of technology. The growing air passenger traffic, the swift increase in GDP per capita, and the speedy growth of the tourism sector are all expected to benefit the APAC market. Commercial aircraft leasing has benefited from the influx of low-cost air carriers into the region. European airlines are being driven to buy more fuel-efficient planes not only to save money on fuel but also to comply with the EU's emissions trading system, a cap-and-trade scheme aimed at reducing greenhouse gas emissions thereby propelling the market growth in Europe.

Key players in the market

Some of the key players profiled in the Commercial Aircraft Leasing Market include Aviation Capital Group, BOC Aviation, Nordic Aviation Capital, ICBC Leasing, Air Lease Corporation, SMBC Aviation Capital, AerCap, Avolon, BBAM, GECAS, SAAB Aircraft Leasing, International Lease Finance Corporation, AerCap, CIT Commercial Air and Boeing Capital Corporation.

Key Developments:

In Dec 2022, Aviation Capital Group LLC (“ACG”) announced the delivery of one new Airbus A321neo aircraft on long-term lease to JetSMART, as part of a three-aircraft sale and lease back transaction between ACG and JetSMART.

In Oct 2022, Aviation Capital Group LLC (“ACG”) announced the delivery of one new Boeing 737-9 MAX aircraft on long-term lease to Copa Airlines. This Boeing 737 MAX aircraft, powered by CFM International LEAP-1B engines, is part of a multiple-aircraft sale-and-lease back transaction between ACG and Copa Airlines and is the ninth Boeing aircraft currently on lease from ACG to the airline.

In Oct 2022, BOC Aviation Completes Delivery of Six Boeing 787-9 Aircraft To Norse Atlantic Airways. The delivery of these six aircraft reflects the strong level of teamwork and cooperation between Norse Atlantic and BOC Aviation.

Leasing Types Covered:
• Wet Leasing
• Dry Leasing

Aircraft Types Covered:
• Narrow-Body
• Wide-Body
• Other Aircraft Types

Security Types Covered:
• Asset-Backed Security (ABS)
• Non-Asset-Backed Security(Non-ABS)

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements