Aircraft Leasing Market

Aircraft Leasing Market Size

The global aircraft leasing market was valued at USD 187.1 billion in 2024. The market is expected to grow from USD 207.1 billion in 2025 to USD 354.5 billion by 2030 and USD 565.1 billion by 2034, growing at a CAGR of 11.8% during the forecast period.

• The growth of aircraft leasing market is attributed to rising air traffic, fleet expansion, and ongoing OEM delivery delays and production constraints.
  
• The growth of passenger traffic is significantly driving demand for rapid fleet expansion in the aviation industry. A joint ACI-ICAO report stated that global passenger traffic is anticipated to reach 9.5 billion in 2024, which is 104% increase as compared to 2019 levels, indicating a full recovery post-pandemic. ACI also projected that the international passenger traffic would reach 12 billion by 2030 mainly driven by the international aircraft market expansion in the Asia-Pacific and Middle Eastern regions. Airlines are increasingly shifting to leasing models to preserve capital and retain fleet flexibility. This change is forecasted to greatly increase the demand for aircraft leasing, enabling carriers to rapidly scale operations, manage fleet age profiles, and integrate new generation aircraft without incurring the financial burden of outright purchases.
  
• OEMs such as Airbus and Boeing are facing persistent delays in aircraft deliveries, which is in turn, fostering growth in the aircraft leasing market. Prior issues with the supply chain, skilled labor shortages, and strict production workflows have extended lead times for new aircraft. For example, the US Government Accountability Office reported that in 2023 Boeing only delivered 528 commercial aircraft, which fell short of their projected output due to persistent manufacturing issues. To cater this, carriers are now increasingly turning to leasing in order to fulfill short to medium-term capacity needs as well as to fill the gap between supply and demand. As the OEM backlogs continue to expand into the multi-year time frame, leasing proves to be the quickest and most adaptive way for airlines to acquire new, fuel-efficient aircraft, permitting sustained growth in demand in the leasing market.
  
• In 2024, North America accounted for 35.1% of the aircraft leasing market due to the region’s well-developed aviation infrastructure as well as increasing air traffic. As reported by ACI, North American airports witnessed a 4.5% growth in total passenger traffic in 2024 accompanied by a rise in cargo volumes and aircraft movements. The ongoing operational growth is prompting airlines to adopt leasing models to quickly scale capacity, acquire new types of aircraft, and optimize fleet management expenses. The presence of numerous low-cost carriers in the region, in conjunction with robust financial markets supporting lessor activity, strengthens the dominance of North America in the global aircraft leasing industry.
  

Aircraft Leasing Market Trends

• In the aircraft leasing industry, the increasing adoption of fuel-efficient, narrow-body aircraft by full-service carriers is emerging as a notable development. Airlines are significantly investing in next-generation aircraft such as the A321LR to improve operational efficiency and passenger experience. In July 2025, AerCap was scheduled to deliver the first of 20 new A321LRs to Etihad Airways. These aircraft, which are equipped with private first-class suites, are the first A321LRs in Etihad's fleet and will enable the airline to more competitively operate medium and long-hauls. This is in line with Etihad's strategy of leasing modern aircraft to service medium- and long-haul routes at a reasonable cost. It is anticipated that this development will accelerate between 2025 and 2030.
  
• Another trend shaping the aircraft leasing industry is the increasing number of multi-aircraft lease commitments as airlines seek to expand their fleets in the long term. In order to secure timely capacity, carriers are locking in multiple lease agreements due to the increase in passenger volumes and OEM delivery delays. For example, China Aircraft Leasing Corporation (CALC) signed 44 lease commitments during Q2 and completed eight aircraft lease transactions in July 2025, indicating a spike in leasing activity and renewed optimism from airlines. This trend is anticipated to accelerate between 2025 and 2027 as airlines prioritize flexible, asset-light growth strategies.
  
• As lessors leverage blockchain, artificial intelligence, and data analytics technologies for the automation of contract monitoring, asset valuation, and maintenance supervision, the industry is undergoing rapid digital transformation. This development is anticipated to improve operational and strategic transparency for both lessors and lessees. As the industry seek to increase operational efficiency, it is anticipated that these technologies will be widely adopted between 2025 and 2028.
  
• Sustainability-linked financing is gaining traction and is becoming noteworthy in the context of leasing aircraft. Lessors and financiers are slowly implementing leases that are limited by an aircraft’s environmental performance metrics which motivates airline operators to use less fuel in their operations. With the increasing decarbonization pressure for the aviation industry, this is expected to develop significantly from 2025 to 2030, thus improving leasing practices in general concerning the ESG goals.
  

Aircraft Leasing Market Analysis

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On the basis of aircraft type, the market is divided into narrow-body, wide-body, and regional jets.

• The narrow-body segment dominated the market with a market share of 43.9% in 2024 due to their fuel efficiency and rapid turnaround times. These aircraft support high-utilization models in both emerging and mature markets by offering frequency and route optimization.
  
• Lessors should prioritize LCCs and regional connectivity by expanding the narrow-body fleet. Lessors should also appeal to operators seeking fleet modernization or expansion by providing generous flexible leasing terms and expedited delivery schedules.
  
• The wide-body segment is anticipated to grow at a CAGR of 14.2% during the forecast period 2025 - 2034. Wide-body aircraft are crucial for high-capacity and long-haul international routes. Due to the increasing demand for intercontinental travel and freight, full-service carriers and international cargo operators are drawn to these aircraft as they support hub-and-spoke models and offer exceptional passenger comfort and cargo capacity.
  
• Lessors should invest in next-generation wide-body models to capture demand from full-service airlines aiming to modernize fleets. Structured lease packages with maintenance support appeal to operators seeking cost-efficient long-haul capacity.

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On the basis of lease type, the aircraft leasing market is divided into wet lease, dry lease, and damp lease.

• The wet lease segment is anticipated to reach USD 240.1 billion by 2034. Wet leasing models involve providing aircraft, crew, maintenance, and insurance (ACMI) to address seasonal demand, launch new routes, or lower operational disruptions. This model is particularly useful in recovering or volatile markets as it enables airlines to swiftly increase their operational capabilities without making significant long-term commitments.
  
• In the case of newly established carriers, lessors should focus on airlines that are undergoing shortages and offer short-term wet lease solutions. Focusing on operational availability enhances appeal in urgent time-sensitive leasing circumstances.
  
• The dry lease segment is projected to grow at a CAGR of 11.2% during the forecast period 2025 - 2034. Dry leasing is the process of leasing aircraft without any crew or operational support, generally on a long-term basis. This leasing model is preferred by well-established airlines with all the necessary infrastructure as it is popular for fleet expansion or replacement strategies while providing operational autonomy and control over costs.
  
• Lessors should position their dry lease offerings with flexible financing and favorable terms to focus on stable carriers with long-term expansion plans. To cater with rising sustainability objectives, lessors should provide tailored packages for new, more fuel-efficient models.
  

On the basis of end user, the aircraft leasing market is segmented into commercial airlines, air cargo operators, government & defense, charter operators, training & aviation schools, and others.

• The commercial airlines segment is anticipated to reach USD 202.3 billion by 2034. The primary users of leased aircraft are commercial airlines, as leasing aids in fleet expansion, capacity management, and financial flexibility. Aircraft leasing allows airlines to respond to demand shifts and manage expansion with minimal capital expenditure, which is critical in a competitive market with tight operating margins.
  
• To maximize efficiency with commercial airlines, lessors should offer bespoke lease structures that incorporate sale-and-leaseback contracts. Comprehensive support packages for new aircraft strengthen relations with fleet modernization-focused carriers.
  
• The air cargo operators segment is anticipated to grow at a CAGR of 13.5% during the forecast period 2025 - 2034. Leased aircraft are pivotal to air cargo operators in addressing the increasing demand for global e-commerce and express delivery and logistics services. Leasing contributes to growing network agility by providing access to wide-bodied and converted freighters at a fraction of the cost of full acquisition.
  
• To capture the growth in logistics, lessors need to develop leasing offerings for freighter-converted narrow and wide body aircraft. Seasonal and long-term lease arrangements will bring a competitive edge in the booming e-commerce cargo industry.

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North America held a market share of 35.1% in 2024 and is anticipated to grow at a CAGR of 11.4% during the forecast period 2025 - 2034. With the extensive use of aviation and well-established infrastructure. Airlines and maintenance service providers prioritize the implementation of predictive technologies to enhance fleet reliability and minimize operational disruptions. Furthermore, the region also benefits from a well-established regulatory landscape alongside high investment in digital aviation technologies.

• U.S. dominated the aircraft leasing market, accounting for USD 57.7 billion in the year 2024. According to the Bureau of Transportation Statistics (BTS), nearly 83.3 million passengers were transported by American carriers in December 2024. This significant volume demonstrates the growing pressure on airlines to operate at optimum efficiency. It further emphasizes that aircraft leasing has become an essential component of business strategy to rapidly scale capacity, fleet optimization, and demand in a cost-effective manner.
  
• Offering flexible lease terms and sale-and-leaseback options will help U.S. carriers manage liquidity while responding to rising passenger volumes.
  
• Canada is anticipated to grow at a 9.1% CAGR during the forecast period 2025 - 2034. In Canada, Air Canada is undergoing fleet modernization, which includes the reintroduction of Boeing 767s, as well as the acquisition of 90 new aircraft by 2029. This development showcases the airline's continued emphasis on replacing older aircraft with more efficient and multifunctional models, thereby enabling aircraft lessors to provide flexible leasing options to facilitate fleet expansion and renewal.
  
• In Canada, lessors should support Air Canada's fleet modernization objectives by extending long-term leases for next-generation wide-body and freighter aircraft.
  

Europe accounted for 27.5% of the global aircraft leasing market in 2024 and is anticipated to grow with a CAGR of 10.4% during the forecast period 2025 - 2034. European airlines are increasingly implementing fleet standardization along with extending lease agreements in a bid to optimize capital expenditures while maintaining continuity within the fleet.

• Germany is anticipated to grow at a 12% CAGR during the forecast period 2025 - 2034. Carriers in Germany are renewing long-term leases to maintain cost efficiency and reduce replacement risks. In August 2024, German Airways extended the lease agreements of its Embraer E190-100LR aircraft with U.S. Azorra. This indicates a shift towards strengthening operational collaboration over new capital purchases.
  
• UK's aircraft leasing market is anticipated to grow at a 11.3% CAGR during the forecast period. Fleet modernization and sustainability compliance are major priorities in the UK, driving demand for new-generation aircraft through leasing rather than direct ownership. The UK aircraft market is predicted to accrue USD 3.59 billion in revenues by 2025, suggesting a surge in leasing activity as operators attempt to gain access to more fuel-efficient aircraft.
  
• In the UK, leasing providers should focus on next-gen aircraft with sustainability-linked terms and offer sale-and-leaseback arrangements to help airlines unlock capital while meeting ESG targets.
  

Asia-Pacific held a share of 24.7% in the global aircraft leasing market and is the fastest-growing region with a 15.1% CAGR during the forecast period. The Asia-Pacific region is experiencing rapid air travel growth, driven by emerging middle-class populations and expanding low-cost carrier networks. As airline companies in this region focus on scalability, leasing has become the preferred strategy for fleet expansion, as it alleviates the burden of upfront purchase costs.

• The market in China is anticipated to reach USD 77.3 billion by the year 2034. Chinese carriers are actively expanding their domestic networks, increasing the demand for aircraft leasing due to regulatory pressures and OEM backlogs. To address the increasing capacity requirements, leasing continues to be the most resource efficient option.
  
• In China, leasing providers should offer long-term leases for new-generation narrow-body aircraft and collaborate with local leasing companies to navigate currency and policy requirements.
  
• Japan's aircraft leasing market was valued at USD 7 billion in 2024. In Japan, airlines are prioritizing operational reliability along with sustained efficiency in expenditures, which is gradually shifting their preference toward leased aircraft over direct purchases. This is further supported by the need for standardization of the fleet, Dispatch Reliability Objectives (DRO), and stable maintenance interval scheduling.
  
• In Japan, lessors are advised to offer extended leases on high-reliability aircraft along with performance-based maintenance, flexible transition procedures for the leased asset at the end of the lease period, and options for asset lifecycle management.
  
• India's aircraft leasing market is anticipated to grow at a CAGR of over 16.6% during the forecast period. India's aviation sector is expanding quickly, and airlines are utilizing leasing to upgrade their fleets and scale operations effectively. For example, the first Airbus A350-900 aircraft in India was successfully acquired by Air India, India's one of the top international airline, in September 2023 through a finance lease with HSBC. This demonstrates the growing significance of leasing models to gain access to contemporary aircraft.
  
• In India, leasing companies should focus marketing efforts on full-service and low-cost carriers with targeted lease options for wide and narrow body geo-strategically. Furthermore, these providers should use GIFT City leasing models to take full advantage of the regulatory tax benefits and other leasing opportunities.
  

Latin America held 3.6% market share in 2024 and is anticipated to grow with a 9.7% CAGR during the forecast period. Latin American aircraft operators are modernizing their fleets to enhance efficiency on regional and international routes. They are strategically leasing to mitigate financial overexposure. Leasing is viewed as a strategic tool for fleet expansion and replacement amid uncertain economic conditions.

In 2024, Middle East and Africa held a share of 9.1% and is anticipated to grow at a 6.2% CAGR during the forecast period 2025 - 2034. MEA airlines are pursuing fleet renewal and expansion to address the increasing demand for passenger and cargo services.

• Saudi Arabia accounted for an 24.7% market share in 2024. The Vision 2030 strategy of Saudi Arabia stimulates fleet acquisition with the establishment of new carriers such as Riyadh Air. Leasing is a cost-effective approach to increase fleet size that aligns with the growth plans of the Saudi Arabia's aviation industry.
  
• In Saudi Arabia, lessors should supply wide- and narrow-body aircraft through Sharia-compliant structures such as Ijarah and secure long-term contracts with emerging carriers for multi-aircraft deployment.
  
• The South Africa market is anticipated to grow at a CAGR of 4.3% during the forecast period. In South Africa, recovery efforts for fleets are in motion after the pandemic, as airlines focus on economical planes to restore their full capacity. Leasing aircraft is becoming the preferred solution in the country, as it enables operational readiness without incurring upfront capital investment.
  
• Leasing companies in South Africa should provide mid-life narrowbody aircraft on low cost leases and incorporate maintenance, repair and operations (MRO) to assist to financially constrained airlines.
  
• The UAE accounted for a share of 30.7% in the market in 2024. Carriers based in the United Arab Emirates, such as Emirates and Etihad, are expanding their long-haul operations and possess a sustained need for next-generation wide-body aircraft. Within the UAE's aviation hub, leasing is still the most favored approach for expanding fleets.
  
• In the UAE, leasing companies should focus on long-range wide-body leasing while expanding their regional footprint through physical offices or strategic collaboration to maintain proximity to key clients.
  

Aircraft Leasing Market Share

The key players in the market are AerCap, Avolon, SMBC Aviation Capital, Air Lease Corporation, and BOC Aviation. In 2024, these companies collectively accounted for over 8.4% of the market share.

• AerCap lead the market with 3.7% market share in 2024. AerCap obtains new aircraft through strategic acquisitions and sale-and-leaseback agreements to sustains the industry’s largest and most diversified fleet. It aims to maximize asset utilization in addition to attaining diversified risk and revenue across the narrow and wide-body passenger plane and cargo aircraft segments.
  
• Avolon held 1.2% of the market share in 2024. Avolon emphasizes sustainable fleet growth through disciplined capital deployment and focus on fuel-efficient aircraft. Avolon places direct investment in sale-and-leaseback transactions and orderbook placements and is building long-term customer relationships in emerging and mature markets. Avolon also includes ESG factors and green leasing frameworks into its long-term strategic planning.
  
• SMBC Aviation Capital held a market share of 1% in 2024. SMBC Aviation Capital operates a young, narrow-body-dominated fleet and is dedicated to a low-risk, conservative leasing approach. It targets its strategy at long-term leases with credit-worthy airlines, strong Japanese shareholder support, and disciplined asset management. The company proactively manages portfolio turnover and aims integration of environmentally friendly aircraft types to meet evolving airline requirements.
  
• Air Lease Corporation held a market share of 1.4% in 2024. Air Lease Corporation focuses on obtaining direct orders from OEMs for next-generation aircraft at competitive terms. ALC focuses on long-term leases with global airlines and fleet modernization. Its combination of low leverage, global market coverage, and relationships with airlines allows it to maintain stable revenue growth and preserve portfolio value.
  
• BOC Aviation held around 1.1% of the aircraft leasing market in 2024. BOC Aviation employs a disciplined investment approach backed by its Chinese parent bank, with a preference for fuel-efficient aircraft and long-term leases. Supported by solid airline alliances, the business prioritizes financial stability and risk diversification. BOC Aviation strategically extends its dominant position in the Asia-Pacific area by utilizing its liquidity and wide global reach.
  

Aircraft Leasing Market Companies

Major players operating in the aircraft leasing industry are:

• ACIA Aero Leasing
• AerCap
• Air Lease Corporation
• Aircastle
• ALAFCO Aviation Lease and Finance Company
• AviaAM Leasing
• Avolon
• BBAM
• BOC Aviation
• Zephyrus Aviation Capital
  
• AerCap, Air Lease Corporation, Avolon, BOC Aviation, and SMBC Aviation Capital are considered as leaders in this market. These companies are key players in the global aircraft leasing portfolio, maintain strong partnerships with leading airlines, and continue to invest in next-generation aircraft. These companies maintain a competitive advantage due to their broad fleet management expertise and strong global presence.
  
• CDB Aviation, Dubai Aerospace Enterprise, Jackson Square Aviation, BBAM, and ALAFCO Aviation Lease and Finance Company are considered as challengers in aircraft leasing market. These businesses have robust order books and strategic support and are expanding rapidly. These companies are modernizing their fleets, increasing their operational capabilities, and significantly growing their regional footprint.
  
• Aircastle, Macquarie AirFinance, Merx Aviation Finance, Sky Leasing, and AviaAM Leasing are classified as followers. These companies have a steady leasing market presence with smaller fleets and selective partnerships. Their business is opportunistic and focused on specific aircraft types, regional airlines, and localized markets.
  
• ACIA Aero Leasing, Truenoord, Falko, and Zephyrus Aviation Capital are classified as niche players. These companies deal in regional aircraft and mid-life asset leasing, often focusing on specific, underserved geographies. These players focus on leasing models and service tailored to the client rather than volume or scale.
  

Aircraft Leasing Industry News

• In May 2025, IndiGo signed a damp lease agreement with Norwegian low cost carrier Norse Atlantic Aviation for two additional Boeing 787-9 Dreamliner aircraft. This agreement extends their existing partnership, which already includes four leased aircraft from Norse.
  
• In June 2025, AIP Capital and Monroe Capital formed a joint venture to acquire a diversified aircraft leasing portfolio valued at up to USD 1 billion. The portfolio will include mid-life aircraft on long-term leases to airlines worldwide.
  

The aircraft leasing market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2034, for the following segments:

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Market, By Leasing Type

• Wet lease
• Dry lease
• Damp lease

Market, By Aircraft Type 

• Narrow-body
• Wide-body
• Regional jets

Market, By Lease Tenure

• Short-term (<2 years)
• Medium-term (2–6 years)
• Long-term (>6 years)

Market, By End Use        

• Commercial airlines
• Air cargo operators
• Government & defense
• Charter operators
• Training & aviation schools
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands 
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE