Developments

Latest Edition (June 13th): Airline profitability to rise
June 13th 2024: In this issue: IATA, at its AGM in Dubai, ups its 2024 forecast for airline industry profitability, showing continuing strong growth in demand for air travel; SMBC Avation Capital books record profits; SAF: aerospace leaders establish new IAEG working group on the effect of the use of 100% SAF on aviation systems; Southwest is the latest airline to attract activist investor attention; Global lessors begin court case in Dublin on Russian 'stranded' assets; El Al to give Boeing's MAX a boost with planned new order.

May 30th edition: Imbalance between supply and demand drives aviation sector
May 30th 2024: In this issue we analyse the impact of supply and demand developments on current lease rates and values: Problems with P&W engines, in terms of durability and the need for inspections, continue to create capacity problems for carriers with significant Airbus narrowbody fleets: Also in this issue: a welcome a judgment by India’s High Court which seems to suggest a greater willingness than heretofore to respect the terms of the Cape Town Convention: Aquila doubles loan; WLFC declares dividend

 

Perspectives

Lessors place big orders with Boeing and Airbus


The latest batch lessors look to a peace to come includes one of the largest orders this year, for 80 A320 family aircraft by BOC Aviation, and the firming up of an order with Boeing for 32 MAXs from ALC.
Sanctions present varied legal issues for lessors
Insurers ponder true extent of their claims exposure
Delta, easyJet and Wizz see blue skies ahead
Assets trapped in Russia are an operational nightmare for financiers and lessors

Developments

May 16th edition: Strong interest in airline bonds
May 16th 2024: Investors flock to European carriers’ bond issues; ALC thinks today’s OEM order ‘frenzy’ may yield future opportunities; AerCap dividend reflects cashflow confidence; Brookfield takes 51% of Castlelake; Passenger revenue growth lifts airline profitability; Avolon taps market for $1bn more five-year notes; High Ridge, Genesis increase warehousing facilities; Some optimism that it will be third time lucky for Lufthansa's ITA deal approval; airBaltic signs MoU with FokkerNextGen; Hanwha to lease engines.

May 2nd edition: Lessors positive on profit outlook
May 2nd 2024: In this issue: Leading lessors confident about profit outlook; AerCap ups projected EPS; Carriers report mixed outturn from Q1 operations; China's Comac C919 continues its quest to be a real global option with two large domestic orders; Aircraft trading: lessor maintain momentum; ALC ups RCF to $7.8bn; IndiGo orders 30 A350-900; Avation orders ATR 72-600s; CDB Aviation deal with Turkish;

April 18th edition: Lessor says "best first quarter since 2020"
April 18th 2024: In this issue the continued buoyancy of the aviation financing sector is reflected, once again, in positive reports of Q1 activity by more industry leaders; United Airlines has signed two LoIs with two lessors to acquire 35 new Airbus A321neos commencing 2026; Airbus is predicting that North America’s commercial aircraft services market will grow by 45 per cent between now and 2042; Brookfield may buy Castlelake; DAE $750m term loan; CALC places Dreamliners; AerCap leases three A320s to Amelia; AerCap note exchange offer; FG Aviation acquires planes from Crestone; Formidion sells aircraft to De Havilland.


April 4th edition: Capital markets back aircraft leasing
April 4th 2024: In this issue we refer to the strength in demand for note offerings by leading lessors; AerCap maintained its business activity momentum in the first quarter; The switch in new aircraft orders, from narrowbody to widebody, also highlights the strong fundamentals now at play in the sector; TrueNoord secures new DB loan; MUFG insurance covered facility for Azorra; SAS AB reorganisation process in Sweden; Atlas Air freighter for YunExpress.

March 21st edition: Leasing companies report record results; look ahead with confidence
March 21st 2024: In this issue we report on the positive outlook of three of lessor's – BOC Aviation, CALC and Willis Lease; Boeing: Commercial CFO Brian West says operating profit margin of the unit is set to fall to minus 20 per cent in Q1; ICAO and AWG seek to drive CTC compliance; SAA talks finally abandoned; CCB $420m loan for DAE; AerCap notes swap; Korean, JAL in market for widebodies; AerCap delivers A330neo to Corsair; Canada Jetlines takes A320s from ACG; SMBC, GOAL deliver A320s to JetSMART.

March 7th edition: Good conditions will "persist for many years" - Kelly
March 7th 2024: Industry dynamics create difficulties for carriers but opportunities for lessors; Pace of aircraft orders shows no signs of easing at Singapore Airshow; AirAsia parent makes progress on US listing plan; Merger between JetBlue and Spirit abandoned amidst continuning regulator opposition; Oliver Wyman lowers global fleet projections; NAC continues its move away from regional jets with portfolio sale Falko.

 

Developments - 2021

February 22nd edition: Big widebody orders in Singapore
February 22nd 2024: Orders reflect Asian international travel recovery; DAE reports profit of $350 million for 2023; Avolon reports strong profit growth in 2023; ACG swings back into profit; Thai orders 45 Boeing 787s; Starlux orders A350Fs, A330neos; BOC finalises IndiGo finance leases; CALC Orders 40 LEAP-1A engines.

February 8th edition: Bright opportunities pull in new investors
February 8th 2024: Aviation finance as attractive as ever as new pension-backed platform to invest $1.5bn over next three years; CALC's $500m sustainability-linked PDP loan is an industry first; Avolon predicts that a return to ‘higher for longer’ cost of capital conditions could ‘encourage sub-scale leasing platforms to exit the market,’ with the potential for an uptick in lessor M&A activity in 2024: IATA’s Walsh demands states, fuel suppliers step up to meet SAF challenge; Boeing’s bad news creates further delays for deliveries, certifications; GOL enters Chapter 11, SAS resolves creditor concerns.

January 25th edition: Boeing’s woes wont go away
January 25th 2024: FAA blocks 737 production growth - serious implications for Boeing cashflow; Avolon, Aircastle and ALC take advantage of the early year positivity in US capital markets as they raise a combined $2.3bn; Higher lease rates now lifting mid-life and widebody values - Forsberg; Does M&A regulation do more harm than good? Ashland Place's latest financing; Griffin gears up for further growth with order for six A220s.

January 11th edition: Positive market background reflected in aircraft orders
January 11th 2024: It is always pleasant to start a new year with a positive, or relatively positive markets background to sustain the natural optimism that always accompanies a new year. All the more so, as pure probability seems to suggest that after the serial 'black swan' events of Covid and Ukraine the aviation and aircraft leasing industry can perhaps hope for a break for a while.

December 7th edition: Pace of recovery reflects resilience
December 7th 2023: IATA now expects airlines to make over $23bn in 2023, a fivefold increase on its original forecast; Time runs out for Go First; SpiceJet seeks $100m credit; Alaska Airlines agrees to acquire Hawaiian in $1.9 bn deal; Avolon prices additional $400m of senior 2028 notes; SAS prepares to exit Chapter 11; European carriers mull their options for listing locations.

November 23rd edition: Dubai Airshow orders a milestone in aviation recovery
November 23rd 2023: Activity at the Dubai Airshow demonstrated the strong optimism that now exists amongst airlines, keen to secure new aircraft slots at a time when future delivery dates for both narrowbody and widebody planes remains uncertain. SMBC AC reports strong performance in its latest financial release; ALC's deals; GE Capital closes its position in AerCap, the last act in a historic deal for aviation finance; Northern Ireland's aerospace industry showcases its strengths; Aeroflot's latest settlement.