The global aircraft leasing market was valued at USD 172.88 billion in 2023 and is projected to grow from USD 183.23 billion in 2024 to USD 401.67 billion by 2032, exhibiting a CAGR of 11.1% during the forecast period. Europe led the market in 2023 with a 50.32% share, driven by the dominance of leasing companies in Ireland and the rising adoption of leasing models by low-cost carriers (LCCs).
Aircraft leasing offers airlines the flexibility to operate without the financial burden of purchasing aircraft. Lessors purchase aircraft and lease them to operators in return for periodic payments, providing airlines with liquidity, fleet consistency, and capacity flexibility. Leasing is typically short-term (not exceeding 10 years), after which the aircraft is returned to the lessor.
The rapid expansion of low-cost carriers is a key driver. LCCs typically lease most of their fleets to minimize operational costs and increase route coverage. With rising domestic air travel, budget airlines are connecting regional and rural markets, significantly boosting leasing demand.
Global passenger traffic reached 6.8 billion in 2022, with approximately 400 commercial departures per hour worldwide. This surge in air travel has encouraged both new and established airlines to lease aircraft for efficient fleet management and cash flow optimization.
Leasing enables airlines to reduce debt and maintain liquidity. The sale-and-leaseback model, where lessors purchase aircraft ordered by airlines and lease them back, has gained momentum and strengthens airline balance sheets.