The Aircraft Leasing Industry Remains Strong Regardless of the Current Inflationary Cycle

The inflationary cycle continues to weigh on the economic recovery and hamper the restoring process at all levels and in all sectors. Despite this unpromising situation, marked by a post-Covid recovery that is still very weak and a long-lasting war between Russia and Ukraine, the aircraft leasing industry continues to perform well, despite all odds.

It is true that the airline industry continues to be affected by the general rise in airfares. However, real assets, such as aircraft, are far from suffering from inflationary shocks: and for good reason, these assets are still able to generate yield premiums in case of resale or fleet modification. Indeed, inflation causes aircraft prices to rise over time, which can help offset the depreciation in their value. Even better, owning an aircraft gives you the opportunity to continue to benefit from the rental income it generates until it is resold!

A sector that literally “surfs” on the current inflation!

At ABL Aviation, we believe that the aircraft leasing industry has enough flexibility to withstand inflation. Offering maximum resilience to our customers worldwide, ABL Aviation is constantly providing highly innovative solutions to airlines, as well as providing them with optimal agility in dealing with the challenging inflationary cycle that is spreading all over the world.

In this regard, ABL Aviation works with leading airlines of different categories (established national airlines, niche airlines, low-cost or ultra-low-cost growing airlines). And since today’s transportation companies need a more agile and dynamic approach to financing and optimizing their fleets, ABL Aviation continues to innovate by offering them an even more credible alternative to traditional financing, which is much slower to obtain and significantly more expensive. ABL Aviation has more than $4 billion of invested capital with no less than 55 aircraft deals with leading airlines. The company is now one of the fastest-growing asset managers in the international aviation sector.