Commercial Aircraft Leasing market size is estimated to reach $325 billion by 2030; Rising air travel demand and the cost-effective nature of leasing offers flexibility and access to new aircraft technology drives the demand for commercial aircraft l

The Commercial Aircraft Leasing market size is estimated to reach $325 billion by 2030, growing at a CAGR of 7.9% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Commercial Aircraft Leasing Market – By Aircraft type: (Narrow-body, Wide-body, regional aircraft), By Lease Type: (Wet lease, Dry lease, Damp lease), By Lease Duration: (Short Term leasing, Long Term leasing), By Security type: (Asset-backed security, non-asset-backed security), By Aircraft Age: (New delivery aircraft, Used aircraft),  By Fleet type:  (Passenger Aircraft, Freight Aircraft), By Geography: Global Opportunity Analysis & Industry Forecast, 2024-2030”

The commercial aircraft leasing market is growing due to increased air traffic, high aircraft purchase costs, and government support for aviation.

Europe holds a 35% global market share in the leasing of commercial aircraft. The International Air Transport Association predicts that despite several supply-side constraints and capacity challenges, Europe is going to do better than anticipated by the end of 2024. In 2023, European airlines most likely made a net profit of about $8.6 billion. There is yet hope for the remainder of the year. In 2024, net profits are projected to reach approximately USD 9.0 billion, with a 3.8% net profit margin. Furthermore, Europe's central location and well-developed transportation infrastructure makes it a strategic hub for the global aviation industry. This proximity to major hubs and airlines provides leasing companies with a competitive advantage.

The high cost of aircraft purchase has been one of the key factors affecting the commercial aircraft leasing market, which holds back airlines from fully purchasing new aircraft. The aircraft are among the most valuable possessions for any airlines, ranging from $50 million to $500 million in cost for each different model and particular specification. This high capital outlay is a big hurdle to many airlines, mainly the small and regional ones, in expanding or modernizing their fleet. In such cases, leasing provides flexibility to airlines with a low initial financial outlay. High aircraft purchasing costs not only shape airlines' buying strategy but also strengthen growth in the commercial aircraft leasing market as a practical alternative to ownership.

The growing global aviation industry has been the main driver of the recent notable growth in the commercial aircraft leasing business. According to International Air Transport Association in global outlook report 2024, forecasts a robust growth in global passenger traffic, over the next 20 years, we expect world passengers to increase by 3.8% per year on average, resulting in over 4 billion additional passenger journeys in 2043 compared to 2023. Additionally, 50% of the aircraft in use worldwide are on operating leases, which have grown in popularity as an alternative to aircraft ownership. Operating leases help airlines maintain their liquidity position and reduce the risks related to asset ownership by enabling them to grow their fleet without having to make significant capital investments. This makes flight fare less expensive and leads to rise in demand for air travel.

Key companies profiled in the Commercial Aircraft Leasing Market are AerCap Holdings N.V., Dubai Aerospace Enterprise, BBAM Aircraft Leasing & Management, SKY Leasing, Nordic Aviation Capital (NAC), BOC Aviation Limited, Avolon Holdings Limited, SMBC Aviation Capital, Air Lease Corporation (ALC), AVIAM Leasing and others.

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