Aircraft Leasing Market By Lease Type (Dry Lease, Wet Lease); By Aircraft Type (Narrow-body, Wide-body, Regional Jets); By Lessee Type (Full-Service Carriers, Low-Cost Carriers, Cargo Operators); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

1. Introduction and Strategic Context

The Global Aircraft Leasing Market will witness a steady CAGR of 7.2%, valued at USD 180.5 billion in 2024 , and expected to reach USD 273.9 billion by 2030 , confirms Strategic Market Research.

 

This market sits at the core of how modern airlines scale operations without burning capital. Rather than outright purchasing aircraft, carriers increasingly opt for flexible leasing models—especially as aircraft prices soar and macro volatility reshapes airline balance sheets. The leasing model is no longer just a cost-saving play. It’s become a strategic tool for fleet agility.

 

Over the next six years, the sector is poised for continued growth, driven by multiple shifts converging at once. Global air travel demand is rebounding faster than many expected, especially across Asia-Pacific and the Middle East. At the same time, the wave of fleet retirements from older aircraft is accelerating, opening up leasing opportunities tied to next-generation narrow-body and long-haul aircraft. Sustainability pressures are also nudging airlines toward cleaner fleets—and leasing gives them the fastest route to transition.

 

From a supply-side lens, lessors are responding with innovative lease structures—power-by-the-hour models, mid-life asset pooling, and sale-leaseback mechanisms that unlock capital for airlines. At the same time, rising interest rates have complicated the traditional economics of aircraft financing. As a result, lease terms are getting smarter, more dynamic, and more tailored to each airline’s operating environment.

 

Stakeholders are diverse. Major lessors, such as banks and pure-play leasing firms, are consolidating. Airlines are increasingly negotiating hybrid lease structures to spread risk. Aircraft manufacturers like Boeing and Airbus are partnering with leasing companies to offload delivery slots. And private equity players are circling mid-life aircraft portfolios, looking to extract long-term value through smart asset rotation.

 

2. Market Segmentation and Forecast Scope

The aircraft leasing market is structured across several key dimensions that reflect how airlines optimize fleet size, cost structure, and operational flexibility. Each segment brings its own dynamics, especially as demand for fuel-efficient aircraft, regulatory compliance, and regional growth patterns evolve.

By Lease Type

The market is primarily divided into dry leasing and wet leasing . Dry leasing involves renting out only the aircraft, without crew or maintenance. It dominates the market today due to its longer contract durations and appeal to large full-service carriers and low-cost airlines looking for autonomy. Wet leasing, by contrast, includes crew, maintenance, and insurance—making it ideal for short-term capacity boosts or seasonal operations.

Dry leasing accounts for nearly 72 percent of market share in 2024, especially favored in emerging markets where carriers seek long-term capacity without capital outlay. That said, wet leasing is gaining traction in Europe and Africa for regional operators facing pilot shortages or regulatory barriers.

By Aircraft Type

Aircraft leasing spans three broad categories: narrow-body , wide-body , and regional jets . Narrow-body aircraft, such as the Airbus A320neo or Boeing 737 MAX, dominate this segment due to high-frequency domestic and short-haul international routes. Their fuel efficiency and availability make them the top leased asset globally.

Wide-body aircraft are typically leased for long-haul, intercontinental routes. Despite being costlier to operate, demand is expected to rebound as global tourism picks up and major airlines resume deferred international routes. Regional jets, meanwhile, see leasing demand primarily from secondary airports, feeder airlines, and developing nations.

Narrow-body aircraft remain the fastest-growing asset category through 2030, driven by LCC fleet expansions and rapid demand recovery across Asia and Latin America.

By Lessee Type

The primary lessees include full-service carriers , low-cost carriers (LCCs) , and cargo operators . LCCs are the most aggressive users of leasing models, often operating with leased fleets of 70 percent or more. Full-service carriers also leverage leases for fleet balancing, particularly when testing new markets or adjusting to seasonal shifts. Cargo operators, boosted by e-commerce growth, are increasingly turning to freighter conversions and leasing mid-life aircraft.

LCCs accounted for around 45 percent of leasing volume in 2024. Their asset-light approach and rapid route additions make them the most consistent drivers of leasing demand.

By Region

Geographically, the market is segmented into North America , Europe , Asia Pacific , and LAMEA (Latin America, Middle East, and Africa) . While North America remains a mature hub for operating leases and sale-leaseback deals, Asia Pacific leads in growth, with rising domestic air travel and new airline launches across India, Vietnam, and Indonesia.

Scope-wise, this report covers market sizing from 2024 through 2030, across dry and wet leasing, aircraft categories, and regional footprints. It also reflects the transition underway as leasing moves from being a financing alternative to a fleet optimization strategy.

 

3. Market Trends and Innovation Landscape

The aircraft leasing market is evolving fast—not just in terms of deal volume but in how leases are structured, assets are managed, and digital systems are integrated. Innovation here is less about shiny new tech and more about smarter asset lifecycle decisions, predictive modeling, and contract agility. Let’s look at what’s reshaping the market right now.

Hybrid Lease Structures Are Becoming the Norm

The days of static, one-size-fits-all leases are fading. Lessors are increasingly offering hybrid structures—blending features of finance leases, operating leases, and even usage-based terms. Airlines want flexibility, especially in a world of demand shocks and rising maintenance costs. Some lessors now offer lease packages with embedded maintenance credits, optional early return clauses, or variable pricing tied to fuel burn metrics.

For airlines navigating uncertainty, these hybrid deals reduce long-term risk. For lessors, they open the door to better asset utilization and stronger client retention.

AI and Predictive Analytics Are Redefining Fleet Planning

Digital transformation is no longer optional. Lessors are investing in AI-driven platforms that model aircraft residual values, forecast engine maintenance schedules, and track real-time asset health. Predictive analytics helps them proactively manage mid-life assets and time re-marketing decisions more precisely.

This shift is especially valuable in the narrow-body market, where competition is high and timing asset availability can make or break profitability.

Green Leasing Is Now on the Radar

Sustainability is driving change across the aviation ecosystem—and lessors are feeling the heat. Airlines under carbon pressure are looking to upgrade to more fuel-efficient aircraft quickly. That’s creating demand for green leases, which offer favorable terms for aircraft that meet certain emission thresholds.

In response, some lessors have introduced “green portfolios” of newer-generation aircraft like the A321XLR or 787 Dreamliner, backed by sustainability-linked finance. While still a niche, the interest is growing, especially from European carriers and ESG-focused investors.

Aircraft Conversion Demand Is Surging

Passenger-to-freighter (P2F) conversions are rising fast. As e-commerce logistics mature and global cargo volumes remain sticky, mid-life aircraft are seeing extended life through cargo leasing. This trend benefits lessors holding aging narrow-body aircraft, which are now being repositioned for second-life freighter use.

One executive noted that a five-year-old 737 may be a depreciation liability for passenger routes—but a revenue generator as a converted freighter on e-commerce corridors.

OEM-Lessor Collaboration Is Getting Tighter

Aircraft manufacturers are leaning more on leasing firms to secure delivery placements and ensure market coverage. Boeing and Airbus now routinely work with top lessors to offload bulk orders, especially during economic slowdowns. These partnerships reduce OEM backlog risks while giving lessors early access to high-demand aircraft types.

This collaboration is also expanding into digital services—where OEMs offer lessors data tools to track in-service reliability, maintenance costs, and route suitability across fleets.

Overall, the aircraft leasing market is becoming more dynamic—less about inventory turnover and more about lifecycle orchestration. Lessors that combine digital foresight with financial creativity are building clear competitive advantage.

 

4. Competitive Intelligence and Benchmarking

The aircraft leasing industry may appear concentrated, but strategic approaches vary significantly among the top players. Some firms prioritize long-haul wide-body placements. Others chase narrow-body bulk deals. And a few are redefining their edge through asset-light digital platforms or sustainability-linked portfolios. Here’s how the leading players are positioned.

AerCap

As the largest aircraft lessor globally, AerCap blends scale with geographic diversity. Its 2021 acquisition of GECAS expanded its portfolio to include over 2,000 aircraft. The firm’s strength lies in its ability to offer a wide range of aircraft types—from regional jets to next-gen long-haul models—backed by deep manufacturer relationships. AerCap is also known for optimizing asset rotation cycles and aggressive remarketing strategies across global markets.

They’ve recently begun reshaping their portfolio around lower-emission aircraft, shifting focus toward the A320neo and Boeing 787 platforms. That move aligns well with airline sustainability mandates, particularly in Europe and Asia.

SMBC Aviation Capital

Backed by a consortium of Japanese banks, SMBC focuses heavily on narrow-body leasing—especially the A320 family and 737 MAX. Its conservative financial model, combined with a high-quality lessee base, gives it a strong risk profile. The company tends to stick with Tier 1 airlines, avoiding high-risk regional operators.

Its disciplined underwriting approach is one reason why it maintained strong lease collections during the pandemic disruption.

Air Lease Corporation (ALC)

ALC positions itself as a partner-first lessor, often working closely with airlines during the aircraft selection and customization phase. Their leadership team, with deep airline operating experience, brings an insider mindset to fleet strategy. The firm has placed a strong bet on fuel-efficient aircraft, particularly the A321XLR and A220, to meet demand from environmentally conscious carriers.

ALC’s forward-order book is one of the strongest in the market—allowing them to secure delivery slots that many carriers now struggle to access on their own.

Avolon

Based in Ireland, Avolon combines competitive pricing with active portfolio management. The firm has leaned into sale-leaseback arrangements in recent years, giving airlines liquidity while securing aircraft with established flight histories. Avolon is also one of the more vocal players in the sustainability space, committing to invest in eVTOL technologies like the Vertical Aerospace VX4.

This dual-track strategy—short-term leasing strength plus long-term innovation bets—gives Avolon an interesting position in the market.

BOC Aviation

Owned by Bank of China, BOC Aviation brings a strong Asia-Pacific focus. The company has deep penetration in China, Southeast Asia, and India—markets that are leading global air traffic recovery. With over 90 percent of its fleet leased to Asian carriers, BOC acts as a strategic lessor for growth-stage airlines across the region.

Its ability to offer financing in multiple currencies and provide favorable lease structures to domestic carriers is a core strength few Western lessors can match.

DAE Capital

Dubai-based DAE has been scaling fast, especially across the Middle East and South Asia. With a relatively young fleet and increasing investments in narrow-body aircraft, DAE is focused on meeting fast-growing regional demand. It’s also active in P2F conversions, aligning with the shift toward e-commerce-driven cargo leasing.

DAE’s geographic alignment with low-cost carrier expansion makes it a go-to partner in emerging hubs like India and Turkey.

Industry Snapshot

• The top five lessors control over half of the global leased fleet.

• Competitive advantage now hinges on access to delivery slots, forward-order capacity, and digital tools for predictive asset management.

• Regional players with local financing access are gaining share in developing markets.

To be honest, size still matters—but agility matters more. The winners in this space are not just financial powerhouses. They’re strategic orchestrators who understand both aircraft economics and airline psychology.

 

5. Regional Landscape and Adoption Outlook

Aircraft leasing isn’t evenly distributed across the globe—it reflects a patchwork of regulatory regimes, airline maturity, economic cycles, and capital access. While leasing originated in the West, its real growth story today is being written in the East. Here's how regional dynamics are playing out.

North America

The U.S. is home to many of the world’s largest airlines, but they’ve traditionally leaned more toward ownership than leasing—especially legacy carriers like Delta and American. That said, the leasing share has been climbing post-COVID, as airlines look to maintain liquidity while renewing fleets.

Sale-leaseback arrangements are becoming more common, and regional carriers are expanding their use of operating leases to gain access to newer aircraft without upfront capital burdens. Canada, meanwhile, is seeing increased leasing activity from low-cost players pushing into transatlantic routes.

Lessors serving North American clients tend to focus on flexible lease terms and quick asset turnover, knowing these carriers often prioritize operational independence.

Europe

Europe is the global center for aircraft leasing headquarters, led by Dublin’s status as the financial and tax hub of the industry. Leasing penetration in Europe is among the highest globally, with over 50 percent of aircraft operated under lease agreements.

Airlines like Ryanair, Wizz Air, and easyJet rely heavily on leasing for fleet expansion, especially across intra-European routes. Regulatory clarity, fleet modernization mandates, and environmental pressures make the region a mature and competitive leasing market.

Environmental policy is also nudging European lessors to transition to next-gen aircraft faster than other regions. Some lease contracts now factor in carbon offset clauses or emissions-linked pricing.

Asia Pacific

This is where the action is. Asia Pacific is the fastest-growing region for aircraft leasing, driven by exploding demand for air travel in China, India, Indonesia, and Vietnam. Many of the region’s airlines are young, fast-expanding, and lack the balance sheet to purchase aircraft outright—making leasing an essential tool.

Chinese lessors like ICBC Leasing and CDB Aviation are growing rapidly, often outpacing Western rivals on home turf. They have strong local relationships and benefit from government-supported financing. India is also evolving, with its recent regulatory moves to establish Gujarat as a domestic leasing hub—mirroring Ireland’s Dublin model.

The big challenge in Asia? Matching aircraft supply with surging demand while ensuring lessee credit quality remains stable.

Middle East and Africa (MEA)

The Middle East is a strategic leasing hotspot, especially due to global carriers like Emirates, Qatar Airways, and Etihad. These airlines traditionally bought aircraft outright, but newer regional players and LCCs are tilting toward leases for flexibility. In Africa, however, leasing is often the only viable path to fleet acquisition—especially given currency risk, limited capital markets, and credit barriers.

African carriers tend to lease older aircraft or converted freighters. But change is coming, as some governments introduce tax incentives and policy reforms to attract lessors.

Latin America

In Latin America, leasing has been a lifeline. Airlines in Brazil, Colombia, and Mexico rely heavily on leases to refresh fleets, especially after several bankruptcies and restructurings in recent years. The region’s economic instability makes purchasing risky, so leasing becomes a capital-light survival strategy.

That said, credit risk remains a top concern for lessors in Latin America. Lease terms often include tighter covenants and more aggressive asset recovery clauses.

Key Takeaways by Region

• North America leans on leasing for liquidity and fleet flexibility.

• Europe is a mature, policy-driven market where green leasing is gaining ground.

• Asia Pacific is the engine of growth, but not without risk.

• MEA is bifurcated—wealthy Gulf carriers and cash-strapped African ones.

• Latin America treats leasing as financial necessity, not strategy.

In short, leasing growth depends not just on aircraft demand, but on how regional ecosystems support—or constrain—access to those assets.

 

6. End-User Dynamics and Use Case

Aircraft leasing is not just a financial decision—it’s a strategic lever for airlines to manage volatility, experiment with new markets, and align fleets with evolving travel patterns. End users across different airline models engage with leasing for different reasons, and understanding their mindset is key to understanding where leasing demand is headed.

Full-Service Carriers (FSCs)

Large legacy airlines have historically preferred owning their fleets, using leasing selectively—often for short-term flexibility or to fill gaps between aircraft retirements and new deliveries. That’s changing.

With capital tightening and sustainability targets increasing, even FSCs are now expanding operating lease exposure. Many are engaging in sale-leaseback deals to unlock capital tied up in owned aircraft. These carriers are also more likely to lease wide-body aircraft for long-haul routes that need fast ramp-up without long procurement cycles.

For example, a European flag carrier used a short-term lease to restart transatlantic services ahead of summer demand, bypassing the need to wait for OEM delivery slots.

Low-Cost Carriers (LCCs)

LCCs are the backbone of leasing demand. These airlines often operate fleets where 70 to 100 percent of aircraft are leased. The reason is simple: leasing enables rapid expansion without locking up cash, and it offers route flexibility if markets underperform.

LCCs tend to favor narrow-body aircraft, particularly new-generation fuel-efficient models, and are increasingly attracted to power-by-the-hour lease models that align cash outflows with actual usage. They also show interest in sale-leaseback structures for aircraft ordered directly from manufacturers, monetizing their early access while maintaining control of assets.

Regional and Hybrid Airlines

These carriers operate in dynamic environments—secondary routes, underserved regions, or niche cross-border corridors. Leasing allows them to tailor capacity precisely. They often look for shorter-term leases, mid-life aircraft, or freighter conversions depending on route type.

What makes them unique is their demand for flexibility and support. Lessors serving this segment often offer bundled services like maintenance partnerships or pilot sourcing, especially in geographies where infrastructure is weak.

Cargo Operators

Freight operators have emerged as a key end-user group, especially since the pandemic. With demand for e-commerce capacity still strong, cargo airlines are leasing converted freighters—mainly older narrow-body jets—at an increasing pace.

Many lessors have begun specializing in cargo leasing, targeting mid-life assets for P2F conversion and repositioning them across Asia, Africa, and Latin America.

Use Case Highlight

A fast-growing Southeast Asian LCC was facing delayed deliveries from its OEM partner. To meet launch schedules for new domestic routes, it entered a short-term lease for five A320neo aircraft from a European lessor. The lease included crew training support, flexible return clauses, and maintenance coverage.

Within three months, the airline launched service in six cities. Occupancy exceeded projections, and by year-end, the airline renegotiated to extend the lease by two years. This allowed the LCC to postpone capital expenditure while scaling with confidence.

This case reflects how aircraft leasing isn’t just about access—it’s about speed, optionality, and solving real-world capacity gaps in days, not years.

Bottom line: different operators need different things. The lessors that win are those who understand whether they’re enabling a strategic pivot, a survival move, or a growth push—and tailor structures accordingly.

 

7. Recent Developments + Opportunities and Restraints

Recent Developments (Last 2 Years)

1. AerCap Signs $20 Billion Lease Deal with Boeing (2023): AerCap announced a major leasing agreement to purchase and lease over 200 new-generation aircraft including 737 MAX and 787 models. This deal reaffirmed demand for fuel-efficient aircraft and locked in supply at a time of long OEM delivery queues.

2. India Launches Aircraft Leasing Hub in Gujarat IFSC (2023): In a bid to replicate Dublin’s success, India unveiled a dedicated legal and tax framework to attract aircraft lessors. Several leasing firms have already registered in GIFT City, signaling a new regional shift in lessor base.

3. Rise in Freighter Conversions (2024): Lessors are capitalizing on e-commerce growth by expanding P2F programs. Firms like BBAM and DAE have placed large conversion orders with MRO partners for 737-800 and A321 platforms.

4. Sustainability-Linked Leasing Gains Momentum: Several lessors, including Avolon and SMBC, have introduced ESG-linked aircraft lease contracts with pricing incentives tied to carbon intensity per seat-kilometer.

 

Opportunities

1. Next-Gen Narrow-Body Dominance With more than 60 percent of airline orders focused on A320neo and 737 MAX families, there’s a huge leasing opportunity for lessors who can secure forward delivery slots and offer flexible dry leases to cost-sensitive carriers.

2. Green Financing as a Differentiator Lessors offering sustainability-linked finance, carbon-tracked leases, and greener fleets are positioned to win long-term contracts with carriers under investor pressure to decarbonize.

3. Growth in Underserved Markets Markets like Central Asia, sub-Saharan Africa, and tier-2 cities in Southeast Asia are opening up for regional aircraft leasing. Operators in these areas are more likely to lease mid-life jets and converted freighters due to cost constraints.

 

Restraints

1. High Interest Rates and Financing Costs Aircraft leasing is capital-intensive, and rising rates have narrowed lease yield spreads. For newer or smaller lessors, accessing competitive financing is becoming harder, especially for wide-body placements.

2. OEM Delivery Delays Aircraft production bottlenecks are creating a supply mismatch. Lessors face delivery deferrals, limiting their ability to place new aircraft with lessees on time—leading to missed revenue windows.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 180.5 Billion
Revenue Forecast in 2030	USD 273.9 Billion
Overall Growth Rate	CAGR of 7.2% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Lease Type, Aircraft Type, Lessee Type, Geography
By Lease Type	Dry Lease, Wet Lease
By Aircraft Type	Narrow-body, Wide-body, Regional Jets
By Lessee Type	Full-Service Carriers, Low-Cost Carriers, Cargo Operators
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, China, India, UAE, Brazil, etc.
Market Drivers	- Shift toward asset-light airline models - Rapid growth in air traffic across emerging markets - Pressure to renew fleets with fuel-efficient aircraft
Customization Option	Available upon request