Aircraft Leasing Market
Report ID: SQMIG20A2334
Report ID: SQMIG20A2334
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Report ID:
SQMIG20A2334 |
Region:
Global |
Published Date: May, 2025
Pages:
185
|Tables:
137
|Figures:
73
Global Aircraft Leasing Market size was valued at USD 198.34 Billion in 2024 and is poised to grow from USD 220.75 Billion in 2025 to USD 519.83 Billion by 2033, growing at a CAGR of 11.3% during the forecast period (2026–2033).
Growing demand for new aircraft globally due to the increase in air travel is expected to drive the market. The increasing reliance on leased aircraft by low-cost carriers (LCCs) is expected to propel global aircraft leasing market growth. As LCCs strive to offer competitive pricing while enhancing customer experience, aircraft leasing provides a cost-efficient alternative to fleet ownership, allowing them to optimize operational expenses and expand their networks effectively. The global aviation industry now includes a crucial and active area known as aircraft leasing. Numerous benefits come with this strategy, including more operational flexibility, lower initial capital expenses, and the capacity to adjust to evolving market demands.
The rising competition among airlines is a key driver of the aircraft leasing market, as carriers seek cost-effective strategies to expand their fleets and optimize operations. For example, in 2024, Ryanair announced a major leasing agreement to acquire additional Boeing 737 MAX aircraft through leasing firms, allowing it to rapidly scale its operations without the high capital costs of direct purchases. This trend highlights how leasing enables airlines to remain competitive by expanding their fleet size while maintaining financial flexibility.
The high costs associated with fleet maintenance and upgrades are pushing airlines toward leasing as a more financially viable alternative. Additionally, the escalating prices of new aircraft have made direct purchases challenging, compelling airlines to opt for leasing solutions. For instance, in 2024, IndiGo expanded its fleet through long-term lease agreements for Airbus A320neo aircraft, enabling the airline to maintain operational efficiency without the financial strain of outright purchases. This shift toward leasing helps airlines manage financial risks, ensure fleet modernization, and sustain long-term growth.
How is AI Enhancing Operational Efficiency in Aircraft Leasing?
AI is transforming the aircraft leasing market by enhancing operational efficiency, risk assessment, and asset utilization. Predictive analytics powered by AI helps lessors anticipate maintenance needs, reducing downtime and extending aircraft lifespan, ultimately improving lease profitability. Additionally, AI-driven automation streamlines contract management, lease negotiations, and compliance monitoring, reducing administrative costs and enhancing decision-making speed.
Market snapshot - 2026-2033
Global Market Size
USD 178.2 billion
Largest Segment
Dry Leasing
Fastest Growth
Wet Leasing
Growth Rate
11.3% CAGR
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Global Aircraft Leasing Market is segmented by Aircraft Type, Lease Type, Lease Term, Lease Structure and region. Based on Aircraft Type, the market is segmented into Wide-body aircraft, Narrow-body aircraft and Regional aircraft. Based on Lease Type, the market is segmented into Operating leases, Finance leases and Sale and leaseback. Based on Lease Term, the market is segmented into Short-term leases (less than 5 years), Medium-term leases (5-12 years) and Long-term leases (more than 12 years). Based on Lease Structure, the market is segmented into Fixed-rate leases, Variable-rate leases and Hybrid leases. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
The aircraft leasing market is undergoing a significant transformation, driven by emerging startups leveraging technology, sustainability initiatives, and innovative financing models. These startups are reshaping the industry by optimizing aircraft utilization, enhancing maintenance efficiency, and introducing digital leasing platforms.
As per the 2024 global aircraft leasing market analysis, the dry leasing segment is projected to experience significant growth in the coming years, primarily due to its cost-effectiveness and operational flexibility. Under a dry lease arrangement, the lessor provides the aircraft without crew, maintenance, or insurance, placing full responsibility on the lessee. This structure allows airline operators to control operational and maintenance costs, implementing cost-cutting strategies to enhance efficiency. While dry leasing has traditionally been favored by budget airlines and low-cost carriers, it is increasingly being adopted by major airlines seeking greater financial and operational flexibility. Additionally, the rising demand for dry-leased aircraft is contributing to job creation in the aviation sector, further driving market expansion.
In contrast, the wet leasing segment is expected to witness moderate growth, largely due to limited adoption by airlines. A key drawback of wet leasing is that airlines lack full control over aircraft operations, as the leasing company provides crew, maintenance, and insurance services. However, wet leases remain a viable solution during peak travel seasons, when airlines face increased passenger demand but lack the resources to expand their fleets permanently. Instead of purchasing new aircraft or hiring additional staff, airlines opt for short-term wet leases to quickly scale up operations. While wet leasing is not as widely utilized as dry leasing, its role in meeting seasonal demand and addressing temporary capacity shortages is expected to sustain its market presence in the forecast period.
As per global aircraft leasing market forecast, the wide body segment dominated the market in terms of revenue in 2024, primarily due to the increasing demand for long-haul travel, particularly in North America and Asia Pacific. The superior passenger capacity, enhanced fuel efficiency, and expanded cargo space of wide-body aircraft have driven their adoption, making them a preferred choice for long-distance routes. This growing demand has significantly contributed to the expansion of the aircraft leasing sector, as airlines seek cost-effective fleet expansion options. Wide-body aircraft offer higher passenger capacity, superior fuel efficiency, and enhanced cargo space, making them a strategic choice for airlines operating long-haul routes.
The narrow body segment is projected to experience robust growth in the coming years, fueled by the expansion of airline fleets in emerging markets and the segment’s cost-effectiveness. These aircraft, known for their operational efficiency and suitability for shorter routes, are becoming increasingly popular among airlines. Their fuel efficiency and lower operating costs further strengthen their appeal, positioning the narrow body segment as a key driver of growth in the aircraft leasing market.
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North America remains one of the most dominant regions in the global aircraft leasing market, driven by a well-established aviation industry, strong financial institutions, and the presence of major leasing companies like AerCap and Air Lease Corporation. The region accounts for a significant share of the global leasing market, with airlines increasingly relying on leased aircraft to optimize operational costs.
The U.S. maintains a dominant position in the aircraft leasing market, supported by major lessors such as Air Lease Corporation and AerCap Holdings N.V. These companies have been instrumental in providing airlines with flexible leasing options, facilitating fleet expansion and modernization. Innovations in the U.S. market include the integration of advanced technologies in fleet management and the development of sustainable leasing solutions to meet evolving environmental standards.
Canada's aircraft leasing market has grown steadily, with airlines like Air Canada and WestJet increasingly utilizing leasing arrangements to optimize their fleets. The country's strategic emphasis on enhancing regional connectivity has led to a higher demand for leased aircraft, particularly narrow-body models suitable for domestic and transborder routes. Canadian lessors have also focused on incorporating fuel-efficient aircraft into their portfolios to align with global sustainability trends.
Asia-Pacific is witnessing unprecedented growth in the aircraft leasing market, fueled by the rapid expansion of air travel and the rising influence of aviation hubs like Singapore and Hong Kong. The region’s leasing market is experiencing a double-digit growth rate, with airlines in countries like Japan, China, and Singapore relying heavily on leasing to expand their fleets. One of the key drivers of this growth is the increasing demand for new-generation aircraft among low-cost carriers (LCCs) and full-service airlines.
Japan has emerged as a key player in the aircraft leasing industry, with companies like SMBC Aviation Capital expanding their global footprint. A notable development is the acquisition by Sumitomo Mitsui Finance and Leasing (SMFL) of Macquarie Rotorcraft, a UK-based helicopter leasing business, through its joint venture SMFL LCI Helicopters. This $1 billion deal, announced in March 2025, added approximately 120 leased aircraft to SMFL's portfolio, underscoring Japan's strategic move to strengthen its position in the helicopter leasing sector.
Singapore stands as a prominent hub in the Asia-Pacific aircraft leasing market, with BOC Aviation, a subsidiary of the Bank of China, headquartered in the city-state. BOC Aviation is one of the largest aircraft operating leasing companies globally, with a portfolio that includes 453 aircraft and an additional 203 on order from Airbus and Boeing. Singapore's strategic location and business-friendly environment have attracted numerous leasing firms, fostering innovations such as the development of integrated leasing and maintenance solutions to enhance operational efficiency.
Europe has emerged as a highly competitive region in the aircraft leasing industry, with countries like Germany, France, and Ireland playing key roles. The European market is characterized by the presence of leading aircraft lessors, including SMBC Aviation Capital and Avolon, which have extensive portfolios of leased aircraft. One of the driving factors for leasing growth in Europe is the focus on sustainability and green leasing initiatives. On November 12, 2024, Dublin hosted the third annual Global Aviation Sustainability Day, organized by Aircraft Leasing Ireland (ALI). The event brought together over 300 industry leaders, including lessors, airlines, regulators, fuel producers, manufacturers, and financiers, to discuss the theme "Sustainability: Is Reality Biting." Panel discussions focused on Sustainable Aviation Fuels (SAF), advancements in aircraft technology, and evolving industry regulations. European lessors are increasingly offering incentives for airlines to lease fuel-efficient aircraft, aligning with the region’s stringent carbon reduction policies.
Germany plays a significant role in the European aircraft leasing landscape, with airlines such as Lufthansa engaging in sale-and-leaseback transactions to maintain operational flexibility. The German market has seen a trend toward leasing newer, more efficient aircraft to comply with stringent EU emissions regulations. Innovations include the adoption of digital platforms for lease management and the exploration of leasing options for emerging technologies like electric aircraft.
France is Europe's fastest-growing aircraft leasing market, with an annual growth rate of 7%. Air France and its subsidiaries are increasingly adopting leasing models to modernize fleets while maintaining financial flexibility. French lessors have introduced green leasing initiatives, including incentives for airlines leasing fuel-efficient aircraft. In 2025, Air France signed a lease deal for 15 Airbus A220 aircraft, reducing fuel consumption by 25% compared to older models
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Rising Demand for Sustainable Aviation Solutions
Cost-Effectiveness and Flexibility for Airlines
Rising Interest Rates and Economic Uncertainty
Supply Chain Disruptions Affecting Aircraft Deliveries
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The global aircraft leasing industry is becoming increasingly competitive, with established players and emerging startups vying for market share. Industry giants like Avolon, LCI, and AerCap continue to dominate with extensive leasing portfolios and strategic investments in next-generation aircraft, particularly eVTOLs. However, new entrants such as Fly2Sky Airlines, Archer Aviation, and FitzWalter Capital Limited are reshaping the landscape with innovative leasing models and a focus on sustainable aviation. Startups are leveraging technological advancements and flexible financing structures to attract airlines seeking cost-effective leasing solutions.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the escalating demand for air travel is one dominant factor sharply driving the aircraft leasing market's exponential growth. The aviation industry's landscape is dynamically changing, and airlines are employing leasing strategies to restructure their fleets. An increasing number of airline companies are shifting away from owning aircraft, causing a surge in the demand for leased aircraft. The fleet expansion of low-cost carriers and budget airlines around the world is one of the major driving factors. These airline operators prefer leasing every aircraft in their fleet and lease out or return the aircraft after a few years just to minimize the maintenance and operation cost. With growing passenger air traffic on domestic routes, these airlines have started connecting every rural and urban area in their registered countries. For instance, in the current situation for European aviation, one sector is doing exceptionally well, low-cost carriers. The lack of modern airport infrastructure is a major problem for aircraft lessors, as newly leased aircraft must be located and stored in the right location. The availability of efficient airports is one major requirement for the investor or lessor looking forward to investing in the aircraft leasing business.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 198.34 Billion |
| Market size value in 2033 | USD 519.83 Billion |
| Growth Rate | 11.3% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Aircraft Leasing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Aircraft Leasing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Aircraft Leasing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Aircraft Leasing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
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Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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