Aircraft Orders & Deliveries
China Aircraft Leasing Group Reports Strong Growth and Market Expansion in 2025
CALC shows robust H1 2025 financials, strategic partnerships, and fleet growth, strengthening its global aircraft leasing market position.
China Aircraft Leasing Group Holdings Limited: Strategic Growth and Market Leadership in Global Aviation Finance
China Aircraft Leasing Group Holdings Limited (CALC) stands as a pivotal force in the global aircraft leasing sector, demonstrating resilience and strategic vision amid a rapidly evolving aviation landscape. In 2025, CALC’s operational and financial achievements have not only reinforced its market position but also underscored its adaptability and forward-thinking approach to aviation finance. As the first publicly listed aircraft lessor in Asia, CALC leverages its Hong Kong base to bridge Chinese and international aviation markets, capitalizing on both regional growth and global opportunities.
The significance of CALC’s trajectory lies in its ability to navigate complex market dynamics, maintain robust financial performance, and execute strategic partnerships that extend its reach beyond Asia. Recent milestones, such as a heavily oversubscribed US$160 million bond issuance, a surge in adjusted net profit to HK$300 million, and new leasing agreements with international carriers like Icelandair, highlight CALC’s operational excellence and investor confidence. The company’s investment-grade credit rating and a substantial order book position it to benefit from industry trends projecting the global aircraft leasing market to reach nearly USD $400 billion by 2034.
With a diversified business model encompassing both new aircraft leasing and comprehensive aftermarket services, CALC is uniquely equipped to address the full spectrum of airline needs. This article provides a fact-based analysis of CALC’s recent performance, strategic initiatives, and industry context, drawing on verified data and expert perspectives to offer a neutral, professional overview of the company’s standing and future prospects.
Company Background and Historical Context
Founded in 2006 and headquartered in Hong Kong, CALC has evolved into a leading aircraft lessor with a global footprint. Its 2014 listing on the Hong Kong Stock Exchange (01848.HK) marked a watershed moment for the Asian aviation finance sector, positioning CALC as a pioneer in public market access for aircraft leasing companies.[5] The company operates representative offices in key aviation hubs, including Beijing, Shanghai, Shenzhen, Tianjin, Toulouse, and Ireland, enabling it to serve a broad client base across multiple regulatory environments.[6]
CALC’s business model is distinguished by its focus on the entire aircraft lifecycle. Beyond conventional leasing, the company provides value-added services such as fleet planning, upgrades, and aircraft disassembly and component sales. This integrated approach allows CALC to support Airlines from fleet expansion through to aircraft end-of-life management.[5]
Strategic investments from entities like China Everbright Limited and China Aerospace Investment Holdings Limited have further strengthened CALC’s capital base and operational flexibility.[22] These partnerships have enabled CALC to remain one of China’s largest independent aircraft leasing companies, with access to diversified funding sources and enhanced market agility.
Financial Performance and Operational Excellence
CALC’s interim results for the first half of 2025 reflect operational resilience and prudent asset management. The company reported total revenue of HK$2,405.2 million, a slight decrease from the previous year, but achieved a 6.7% year-on-year increase in profit attributable to shareholders, reaching HK$140.5 million.[4] Adjusted for foreign exchange effects, profit attributable to shareholders surged to HK$300 million, indicating robust underlying business performance.
Operating profit grew significantly to HK$481.0 million, up 75.9% from HK$273.5 million in the first half of 2024.[4] This improvement was driven by efficient cost management and optimization of lease rates. Earnings per share also increased, and the board declared an interim dividend of HK$0.12 per share, reflecting a commitment to shareholder returns.
CALC’s wholly owned subsidiary, CALC (Tianjin), reported total assets of RMB 42,434.73 million and a net profit of RMB 479.00 million for the same period, further illustrating the group’s financial strength.[1] These figures underscore CALC’s ability to generate stable cash flows and maintain a solid balance sheet in a competitive market.
“CALC’s operating profit surged 75.9% year-on-year in the first half of 2025, demonstrating the company’s effective cost management and strategic portfolio optimization.”
Strategic Financing and Capital Market Access
In August 2025, CALC marked its successful return to the international debt market with a US$160 million senior unsecured notes issuance, oversubscribed 4.35 times and priced at a 6% fixed coupon rate.[3] This transaction, the company’s first USD bond since 2021, was facilitated by a syndicate of global financial institutions, reflecting strong investor confidence in CALC’s credit profile.
The bond issuance followed CALC’s receipt of an Ag- long-term credit rating with a stable outlook from China Chengxin (Asia Pacific) Credit Ratings Company Limited (CCXAP).[27] The rating, based on factors such as the recovery of the global aviation industry, CALC’s leading market position, and support from China Everbright Group, enhances CALC’s access to capital and reduces funding costs.
The broad investor base for the bond, spanning Hong Kong, Mainland China, Singapore, and France, demonstrates CALC’s international appeal and ability to tap diverse funding sources. This financial flexibility supports ongoing fleet expansion and strategic initiatives.
“The successful bond issuance and investment-grade rating reflect CALC’s robust financial position and broad investor confidence.”
Fleet Portfolio, Strategic Partnerships, and Market Expansion
CALC’s fleet management strategy focuses on high asset utilization and modern, fuel-efficient aircraft. As of June 30, 2025, CALC managed a fleet of 181 aircraft (151 owned and 30 managed), with 89% of the owned fleet comprising narrowbody models, an asset class favored for its liquidity and market demand.[4]
During the first half of 2025, the company completed record aircraft transactions, entering into 21 sale and purchase agreements or letters of intent and 38 lease agreements or letters of intent. Notably, 19 aircraft and 2 engines were sold, and 11 aircraft (10 new, 1 used) were delivered to customers, primarily Airbus new-generation models.[4]
Fleet utilization rates reached 100% (excluding one aircraft affected by Russian market conditions), underscoring CALC’s effective asset management and strong airline relationships.[4] The company maintains a robust order book of 124 aircraft, providing a pipeline for future growth and supporting its strategy of fleet modernization.
International Partnerships and Market Diversification
CALC’s expansion into Europe was highlighted by a new lease agreement with Icelandair for two Airbus A321LR aircraft, scheduled for delivery in late 2026.[12] This partnership not only supports Icelandair’s fleet renewal but also signals CALC’s growing presence in the European market and ability to serve established international carriers.
In Southeast Asia, CALC holds a 49% stake in PT TransNusa Aviation Mandiri, Indonesia, providing direct exposure to a rapidly expanding aviation market.[23] TransNusa’s successful operation of the China-made C909 aircraft, with high passenger loads and on-time performance, demonstrates CALC’s role in promoting Chinese-manufactured aircraft internationally.
The company’s strategic alliances and geographic diversification enhance its resilience against regional market fluctuations and open new avenues for growth. These Partnerships also position CALC as a bridge between Chinese aviation manufacturing and global airline operations.
“Our collaboration with Icelandair exemplifies CALC’s commitment to delivering flexible and efficient fleet solutions to international partners.”
Industry Trends and Market Outlook
The global aircraft leasing market is projected to grow from USD 183.13 billion in 2024 to nearly USD 400 billion by 2034, driven by airlines’ preference for fleet flexibility and capital efficiency.[8] The Asia-Pacific region, in particular, has seen significant demand growth, with international air traffic nearing pre-pandemic levels.
Technological advancements, including AI and machine learning, are transforming fleet management and lease optimization. Leading lessors use these tools to analyze performance, estimate residual values, and manage portfolio risks in real time.[8]
Fleet modernization and sustainability are central to industry strategy. Airbus projects demand for over 43,000 new aircraft by 2044, with narrowbody models expected to dominate future deliveries.[21] CALC’s focus on fuel-efficient aircraft and comprehensive aftermarket services aligns with these trends, supporting both growth and environmental objectives.
Environmental Initiatives and Investment Grade Rating
CALC’s environmental strategy emphasizes both fleet modernization and aircraft recycling. The company’s delivery of A320neo aircraft, which offer a 20% reduction in carbon emissions and fuel consumption per seat compared to earlier models, demonstrates its commitment to Sustainability.[26]
Through its associate, China Aviation Aftermarket Holdings Limited (CAAM), CALC provides aircraft disassembly and recycling services in China and the US. By the end of 2022, CAAM had dismantled over 380 aircraft and 80 engines, supplying more than 370,000 certified recycled components to the aviation supply chain.[26]
Regulatory support for sustainable aviation practices in China and internationally further strengthens CALC’s position as a leader in environmentally responsible aircraft lifecycle management.
“Upgrading a 20-year-old A320ceo to a new A320neo can reduce carbon emissions by 50,000 tonnes over 10 years.”
Investment Grade Rating and Credit Profile
CALC’s Ag- investment-grade rating from CCXAP, awarded in December 2024, reflects its strong market position, diversified fleet, and likelihood of support from major shareholders.[27] The rating enhances CALC’s credibility in international capital markets and supports its long-term growth strategy.
The rating agency cited CALC’s leading position in China, narrowbody-focused fleet, and robust financial channels as key strengths. The stable outlook indicates expectations of continued operational and financial stability over the next 12 to 18 months.[25]
This recognition allows CALC to access funding on favorable terms, reinforcing its ability to invest in fleet expansion, technology, and sustainability initiatives.
Conclusion
CALC’s performance in 2025 showcases its ability to adapt to changing market conditions, capitalize on growth opportunities, and deliver value to stakeholders. The company’s strong financial results, successful bond issuance, and investment-grade rating underscore its operational excellence and strategic foresight.
Looking ahead, CALC’s diversified business model, robust order book, and commitment to sustainability position it to benefit from ongoing industry growth and transformation. By leveraging its Hong Kong base, strategic partnerships, and comprehensive service offerings, CALC is set to maintain its leadership in global aviation finance and contribute to the evolution of the aircraft leasing industry.
FAQ
Q: What is CALC’s core business?
A: CALC specializes in aircraft leasing and comprehensive lifecycle management services, including new aircraft leasing, fleet planning, aircraft disassembly, and component sales.
Q: How did CALC perform financially in H1 2025?
A: CALC reported HK$2,405.2 million in revenue and a 6.7% year-on-year increase in profit attributable to shareholders, with adjusted net profit surging to HK$300 million.
Q: What recent strategic partnerships has CALC announced?
A: In 2025, CALC signed a lease agreement with Icelandair for two Airbus A321LR aircraft and continues its partnership with Indonesian carrier TransNusa, supporting the operation of China-made C909 aircraft.
Q: What is CALC’s approach to sustainability?
A: CALC focuses on delivering fuel-efficient aircraft and provides aircraft recycling and component remanufacturing services through its associate company, CAAM.
Q: What is CALC’s credit rating, and why is it significant?
A: CALC holds an Ag- investment-grade rating from CCXAP, enhancing its access to international capital and supporting its long-term growth initiatives.
Sources
Photo Credit: Airbus
Aircraft Orders & Deliveries
FAA Certifies Boeing 737 MAX 10 for Commercial Service
The FAA issued the type certificate for the Boeing 737 MAX 10 on Oct. 20, 2026, completing the MAX family certification.
The Federal Aviation Administration (FAA) has officially issued the amended type certificate and updated Production Limitation Record for the Boeing 737 MAX 10, clearing the largest variant of the narrowbody family for commercial service and production.
The October 20, 2026, certification marks the conclusion of a years-long regulatory review process and completes the certification of the entire 737 MAX family. In a press release issued today, Alaska Airlines (AS) welcomed the milestone, noting the aircraft is a critical component of its long-term fleet strategy and planned premium transcontinental services.
Regulatory approval and safety enhancements
The certification of the Boeing 737 MAX 10 (737-10) follows an extensive testing and review period. According to Boeing, the certification program included approximately 1,000 test flights and 2,060 total flight test hours.
The regulatory path for the 737-10 was significantly extended following the two fatal crashes of the 737 MAX 8 in 2018 and 2019, which resulted in heightened regulatory scrutiny and new legislative requirements. The 737-10 is the first commercial airplane certified to the full extent of the 2020 Aircraft Certification, Safety, and Accountability Act (ACSAA).
To meet requirements set by the FAA and the National Transportation Safety Board (NTSB), Boeing incorporated key safety improvements into the aircraft. These include updates to the flight-control system featuring an enhanced angle of attack (AOA) sensor. This enhanced AOA system will become standard across the entire 737 MAX family.
U.S. Transportation Secretary Sean P. Duffy highlighted the rigor of the process in an official statement.
“After extensive safety reviews, including thousands of hours of test flights, the team at the FAA is ready to approve this critical aircraft for sale. This is a major win for American manufacturing and our nation’s status as a global aviation powerhouse.”
FAA Administrator Bryan Bedford confirmed that the agency will maintain strict oversight as the manufacturer transitions to the next phase. Bedford stated that the decision follows a thorough review of the design and safety requirements of the aircraft, adding that the FAA will continue to hold Boeing to the highest safety standards as production begins.
Alaska Airlines targets premium transcontinental routes
For Alaska Airlines, the certification unlocks a new phase of fleet modernization and route expansion. The Seattle-based carrier has positioned the 737-10 as the foundation for its upcoming premium transcontinental service.
During its Analyst and Investor Day on September 29, 2026, Alaska Airlines revealed its strategy to deploy the MAX 10 on high-demand, long-haul domestic routes. The airline plans to configure these aircraft with a four-cabin layout featuring 12 lie-flat suites and at least 45 percent premium seating. The carrier intends to use a minimum of 25 MAX 10 aircraft to launch this service.
Ben Minicucci, Chief Executive Officer of Alaska Air Group, emphasized the importance of the regulatory milestone for the carrier.
“The MAX 10 is an important part of Alaska’s long-term fleet strategy and our future.”
Boeing’s competitive positioning in the narrowbody market
Introduced at the 2017 Paris Air Show, the 737-10 was designed to compete directly with the Airbus A321neo in the high-capacity, long-range single-aisle segment. The aircraft features a maximum passenger seating capacity of 230 and offers an additional 365 nautical miles of range compared to competitors without auxiliary fuel tanks.
The narrowbody market remains highly competitive, with the Airbus A321neo currently holding a dominant position in the high-capacity space. The certification of the MAX 10 allows Boeing to offer a direct competitor with claimed advantages in per-seat economics.
Stephanie Pope, President and Chief Executive Officer of Boeing Commercial Airplanes, stated that completing the certification program clears the path for the manufacturer to deliver an airplane that sets a new standard in commercial aviation. Pope noted that the 737-10 offers greater capacity, longer range, and the best seat economics in its class.
The MAX 10 accounts for a significant portion of Boeing’s narrowbody backlog. The variant represents 30 percent of the current 737 MAX program order book, with 1,555 total orders from more than 30 customers globally.
The October 20, 2026, approval follows the certification of the smaller 737-7 variant in August 2026, finalizing the regulatory approvals for the four main variants of the MAX family. Boeing expects to begin delivering the 737-10 to airline customers in the coming months, with the first aircraft projected to enter commercial service in 2027.
AirPro News analysis
The certification of the 737-10 is a critical inflection point for Boeing as it seeks to stem market share losses to the Airbus A321neo. While the A321neo has established a formidable lead in the high-capacity single-aisle segment, the MAX 10 provides Boeing operators with a high-density alternative that maintains crucial fleet commonality and reduces pilot transition costs.
For carriers like Alaska Airlines, the aircraft enables a strategic shift toward premium-heavy configurations that were previously difficult to justify on smaller airframes. The ability to install 12 lie-flat suites while maintaining favorable seat economics allows domestic operators to compete more aggressively on lucrative transcontinental routes, potentially altering the competitive dynamics among major U.S. carriers.
Photo Credit: Bo
Aircraft Orders & Deliveries
Embraer Delivers First RECARO-Equipped E175 to American Airlines
Embraer delivered the first E175 with new RECARO seats to American Airlines on October 19, 2026, in São José dos Campos.
Embraer has delivered the first Embraer E175 regional jet equipped with new-generation RECARO passenger seats to American Airlines. The handover marks a tangible step in the carrier’s broader initiative to align its regional cabin experience with its mainline fleet.
The October 19, 2026, delivery from Embraer’s facility in São José dos Campos, Brazil, introduces an updated interior designed to maximize personal space and knee room. According to the manufacturer’s press release, the seating upgrade brings the E175’s main cabin environment closer to the standards of the newer Embraer E2 family.
Upgrading the regional cabin environment
The integration of RECARO Aircraft Seating products into the E175 platform represents a shift in how airlines approach regional jet interiors. While Embraer’s official communications refer generally to new-generation RECARO passenger seats, aviation industry observers note the released images suggest the installation of the RECARO R2 model. The primary focus of the redesign is optimizing the available cabin footprint to enhance passenger comfort on shorter feeder routes.
American Airlines is the first United States-based carrier to introduce RECARO seating on the Embraer E175. The airline views the cabin update as a critical component of its customer service strategy, aiming to eliminate the historical disparity in comfort between regional and mainline flights.
“As the first U.S. airline to introduce RECARO seats on Embraer E175 aircraft, we’re continuing to raise the bar for regional travel,” said Rhonda Crawford, Senior Vice President of Customer Experience Design and Strategy at American Airlines. “Our goal is to deliver the elevated experience customers want, while creating greater consistency across the American travel experience.”
American Airlines’ fleet modernization strategy
The delivery follows a significant fleet commitment made by American Airlines earlier in the decade. On March 4, 2024, the carrier placed a firm order for 90 Embraer E175 aircraft, configured with 76 seats in a dual-class layout. The agreement also included purchase rights for an additional 43 jets.
This procurement strategy was designed to phase out the airline’s aging 50-seat, single-class regional jets by the end of the decade. Replacing these older airframes with larger, dual-class E175s allows American Airlines to offer premium seating options and better match the capacity and comfort levels expected by passengers connecting to mainline flights.
Building on the aircraft order, American Airlines announced a comprehensive regional fleet cabin modernization program on September 30, 2025. The phased rollout includes refreshed interiors, the installation of fast Wi-Fi, and the addition of in-seat power across its regional network. The newly delivered RECARO-equipped E175 is the first direct realization of this interior refresh initiative.
The enduring market position of the E175
Despite the introduction of the newer Embraer E2 family, the first-generation E175 remains a cornerstone of the North American regional aviation market. Embraer continues to invest heavily in the legacy platform to ensure it meets contemporary operational and passenger expectations.
Recent upgrades to the E175 program include enhanced data connectivity, next-generation weather radar systems, and the revised cabin interiors seen in the American Airlines delivery. These continuous improvements are intended to keep the aircraft competitive and reliable for operators.
“The E175 has built an unmatched reputation by continuously evolving to meet the needs of airlines and passengers,” said Arjan Meijer, President and CEO of Embraer Commercial Aviation. “The introduction of our new RECARO seats demonstrates our commitment to investing in the platform and delivering enhancements that improve passenger experience while creating additional value for operators.”
The sustained demand for the E175 in the United States is largely driven by pilot union scope clauses. These contractual agreements restrict the operation of heavier, higher-capacity aircraft by regional airline affiliates. The E175 fits precisely within these regulatory and contractual boundaries, making it the benchmark regional jet for U.S. network carriers.
Embraer, founded in 1969 and headquartered in Brazil, has delivered over 9,000 aircraft across its commercial, executive, defense, and agricultural divisions. The company maintains its position as the leading global manufacturer of commercial jets with a capacity of up to 150 seats.
Photo Credit: Embraer
Aircraft Orders & Deliveries
ACG Orders 75 Airbus A320neo Family Aircraft for 2032-2035
Aviation Capital Group places its largest-ever order, 75 A320neo Family jets, bringing total A320neo commitments to 190 aircraft.
Aviation Capital Group (ACG) has finalized a firm order for 75 Airbus A320neo Family aircraft, securing delivery slots between 2032 and 2035 in the largest single transaction in the lessor’s nearly 40-year history.
The agreement, announced in a press release on October 16, 2026, brings the Newport Beach, California-based company’s total historical commitments for the A320neo Family to 190 aircraft. The order provides ACG with conversion rights across the aircraft family, allowing the lessor to adapt its portfolio to shifting airline demand over the next decade.
Securing narrowbody capacity into the 2030s
The 75-aircraft commitment significantly expands ACG’s backlog with the European manufacturer. Following this transaction, the lessor holds 115 outstanding orders for the A320neo Family. As of June 30, 2026, ACG reported 118 A320neo Family aircraft in its active fleet.
Thomas Baker, Chief Executive Officer and President of Aviation Capital Group, stated that the company’s portfolio strategy focuses on new-technology narrowbody aircraft that are most in demand with airlines globally. He characterized the record order as a statement of confidence in the long-term future of air travel and in the company’s role as a conduit between airlines, aircraft, and capital.
The A320neo Family offers a minimum 20 percent reduction in fuel consumption and carbon dioxide emissions, along with a 50 percent noise reduction compared to previous-generation single-aisle aircraft. The program has secured more than 20,400 orders globally.
Rob Downes, Chief OEM Officer at ACG, noted that the aircraft family remains highly sought-after among airline customers for both replacement and growth requirements. The new order extends the lessor’s delivery pipeline into the mid-2030s.
The relationship between the two companies spans nearly two decades. Benoît de Saint-Exupéry, Executive Vice President of Sales for the Commercial Aircraft business at Airbus, highlighted that the partnership dates back to 2007 when ACG placed its first order with the manufacturer.
Corporate restructuring and leasing market demand
Founded in 1989, ACG is currently a wholly owned subsidiary of Tokyo Century Corporation. The lessor manages a portfolio of over 500 aircraft leased to approximately 85 to 90 airlines across 50 countries. On August 12, 2026, the company reported second-quarter financial results showing total revenues of $668 million for the first half of the year, total assets of $14.6 billion, and available liquidity of $6.6 billion. The company also recently relocated its global headquarters to a modernized facility in Newport Beach on June 15, 2026.
The record Airbus order arrives during a period of significant corporate transition for the lessor. On August 3, 2026, Tokyo Century Corporation announced a binding memorandum of understanding to transfer a 50 percent ownership interest in ACG’s direct parent company to ITOCHU Corporation for approximately $1.9 billion. The transaction, expected to close in November 2026 subject to regulatory approvals, will shift ACG to a 50:50 joint management structure between the two Japanese conglomerates.
The aircraft leasing sector is currently experiencing robust demand driven by a global shortage of new aircraft and sustained post-pandemic air travel demand. Lessors are placing large orders to secure delivery slots well into the next decade. ACG competes with major independent lessors such as AerCap, SMBC Aviation Capital, Avolon, and Air Lease Corporation.
AirPro News analysis
We view the timing of this record order as a direct reflection of ACG’s impending joint ownership structure under Tokyo Century and ITOCHU. The strategic partnership with ITOCHU is explicitly aimed at scaling ACG’s combined leasing business into one of the world’s top five by fleet size. By locking in 75 delivery slots in the highly constrained 2032 to 2035 window, ACG is executing on that growth mandate before the acquisition even closes.
Furthermore, securing A320neo Family positions into the mid-2030s is a defensive necessity in the current leasing environment. With Airbus production slots largely sold out for the remainder of the decade, lessors without guaranteed future pipelines risk losing market share to competitors who can offer airlines guaranteed lift. This order ensures ACG will have the industry’s most liquid asset class available to offer customers during a period when narrowbody capacity is expected to remain tight.
Photo Credit: Airbus
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