Aircraft Leasing Market Taking Off Again
The use of aircraft operating leases has increased over the last 40 years. In 1980, less than 2% of the world’s Western-built jet aircraft were leased. This has significantly increased over the years to the point where approximately 50% of the world’s aircraft were leased at the beginning of 2020. According to research, the global aircraft leasing market was estimated to reach USD 78 billion by 2026 due to factors such as the need for airlines to expand their fleets and the growth in air traffic passengers.
The pandemic outbreak has had a massive impact on the aviation industry across the world. The aircraft leasing market is no exception. Many aircraft have been grounded. The airlines, on the other hand, have been burning considerable capital towards maintenance and aircraft rent payments. Last year, we witnessed a big number of aircraft being returned to the lessors or retired, especially old and large planes.
While the passenger airline market has been hard hit by the pandemic, the airfreight market has significantly boomed. Cargo aircraft and their cabins filling up with cardboard boxes, either with or without seats, have transported, not only PPE and other medical items, but also perishable goods to just-in-time global supply chains. We have also seen many passenger aircraft being converted into cargo aircraft, partially or fully. While the demand for air cargo continues to outpace capacity, cargo aircraft availability has remained very low, hence having impact on the price.
As the overall market is recovering, a number of airlines have already started looking to lease aircraft, both wet and dry lease. This includes start-up, restarting and existing airlines that are already preparing for the next busy Summer Season. We are working with multiple airlines regarding fleet planning for the Summer 2022 season, where Pax ACMI will be required to cover the increase in travel demand.
We forecast a strong demand for regional, narrow-body, business- and all type cargo aircraft for short- and medium-term, while the demand for wide-body airplanes is likely to remain low as travel restrictions are still in place in most parts of the world.
Brookfield Aviation Leasing is here to help connect operators with airlines looking to wet lease, dry lease, damp lease, charter, or purchase aircraft.
We have available through our airline and leasing partners regional turboprops, regional jets, narrow- and wide-bodies and executive aircraft. If you have a requirement, we can help you find the right aircraft that meets the needs of your operations.
We are always looking for new airline partners that have availability of aircraft of all types for both passenger and cargo of any size for sale, charter, or lease. If you have any availability of any aircraft type, please get in touch via firstname.lastname@example.org.