Aircraft Orders & Deliveries
Air Lease Q3 2025 Fleet Growth and $7.4 Billion Acquisition Update
Air Lease Corporation expands fleet with 13 new aircraft and prepares for $7.4 billion acquisition by Sumitomo-led consortium in Q3 2025.
Air Lease Corporation’s third quarter 2025 activity update reveals a company operating at the intersection of significant operational growth and transformational corporate change, positioning itself as a pivotal player in the evolving aircraft leasing landscape. The company delivered thirteen new aircraft while investing $685 million in fleet expansion during the quarter, even as it navigates a pending $7.4 billion acquisition by a consortium led by Sumitomo Corporation and SMBC Aviation Capital. This comprehensive analysis of Air Lease’s Q3 2025 performance demonstrates how the company continues to execute its core leasing strategy while preparing for a fundamental ownership transition that will reshape the global aircraft leasing industry.
The developments in Q3 2025 are significant not only for Air Lease but for the broader aircraft leasing sector. The delivery of new aircraft and the pending acquisition highlight both the resilience and adaptability required in a market shaped by supply chain disruptions, shifting airline demand, and increasing industry consolidation. As airlines worldwide continue to modernize their fleets and respond to evolving passenger needs, Air Lease’s actions and strategic direction provide a window into the future of aviation finance and fleet management.
Air Lease Corporation stands as one of the most significant success stories in the modern aircraft leasing industry, founded in 2010 by aviation mogul Steven F. Udvar-Házy after his departure from International Lease Finance Corporation (ILFC). Udvar-Házy’s pioneering role in creating the aircraft leasing industry cannot be overstated, as he essentially invented the sector in the United States when he founded ILFC in 1973 with fellow Hungarian Leslie Gonda and his son Louis Gonda, beginning with a single used Douglas DC-8 leased to Aeroméxico. The establishment of Air Lease represented Udvar-Házy’s return to entrepreneurship after selling ILFC, bringing with him decades of experience and an encyclopedic knowledge of aircraft and airlines that has proven instrumental in the company’s rapid growth.
The company’s business model centers on purchasing commercial jet aircraft directly from manufacturers and leasing them to airlines worldwide, generating attractive returns on equity while providing essential fleet solutions to carriers across diverse markets. Air Lease’s approach differs from traditional lessors through its focus on new technology aircraft and strategic relationships with both Boeing and Airbus, allowing the company to secure favorable delivery positions and pricing. This strategic positioning has enabled Air Lease to build a portfolio centered on fuel-efficient, modern aircraft that command premium lease rates and maintain strong residual values.
Since its founding, Air Lease has grown to become a major force in the global aircraft leasing market, with its fleet reaching 503 owned aircraft and 50 managed aircraft as of September 30, 2025. The company’s geographic diversification strategy has proven particularly valuable, with operations spanning the Asia-Pacific region, Europe, the Middle East, Africa, Mexico, Central America, South America, the United States, and Canada. This global footprint provides natural hedging against regional economic downturns and allows the company to capitalize on growth opportunities across different markets.
The company’s leadership team, led by President and CEO John Plueger, has maintained the entrepreneurial spirit and aviation expertise that characterized Udvar-Házy’s approach to the business. Plueger, who has been Udvar-Házy’s closest partner since the late 1980s, brings deep industry knowledge and operational expertise that has been crucial in executing the company’s growth strategy. The continuity of leadership and strategic vision has enabled Air Lease to navigate various market cycles while maintaining its focus on fleet modernization and customer service excellence.
Air Lease Corporation’s third quarter 2025 operational performance demonstrates the company’s continued commitment to fleet modernization and strategic growth, despite the uncertainty created by the pending acquisition. The company delivered thirteen new aircraft during the quarter, representing a significant addition to its operational capacity and reinforcing its position as a leading provider of modern, fuel-efficient aircraft to global airlines. The specific composition of these deliveries reflects Air Lease’s strategic focus on narrow-body aircraft that serve the backbone of global airline operations, including two Airbus A220s, two Airbus A321neos, six Boeing 737-8s, and three Boeing 737-9s.
The $685 million investment in aircraft during the third quarter underscores Air Lease’s substantial capital deployment capabilities and its commitment to maintaining a young, technologically advanced fleet. This investment level represents a significant commitment to growth, particularly given the challenging supply chain environment facing the aviation industry. The company’s ability to take delivery of new aircraft in the current constrained manufacturing environment demonstrates the value of its long-standing relationships with aircraft manufacturers and its strategic order book positioning. Air Lease’s fleet composition as of September 30, 2025, reveals a company that has achieved substantial scale while maintaining focus on modern aircraft technology. With 503 owned aircraft and 50 managed aircraft, the company operates one of the largest independent aircraft leasing portfolios in the industry. The company’s order book extends through 2031 with 228 new aircraft on order from Airbus and Boeing, providing visibility into future growth and cash flow generation. This substantial order book represents a significant competitive advantage, as aircraft delivery slots have become increasingly valuable in the current supply-constrained environment.
The company’s aircraft sales activity during the quarter also demonstrates its sophisticated approach to portfolio management and capital allocation. Air Lease sold five aircraft to third-party buyers, generating approximately $220 million in sales proceeds. This selective disposal strategy allows the company to optimize its portfolio composition while realizing gains on aircraft that have appreciated in value or reached optimal points in their lifecycle. The ability to generate substantial proceeds from aircraft sales provides important liquidity and flexibility for reinvestment in newer aircraft or other strategic initiatives.
“The combination of high aircraft utilization, strong lease rates, and continued demand for modern aircraft has created favorable operating conditions for lessors like Air Lease.”
Air Lease’s operational metrics reflect the strong fundamentals of the aircraft leasing business in the current market environment. The company has benefited from the recovery in global air travel demand, which has driven strong utilization rates and enabled lease rate increases as older contracts roll off and are replaced with new agreements at current market rates. The combination of high aircraft utilization, strong lease rates, and continued demand for modern aircraft has created favorable operating conditions for lessors like Air Lease.
The announcement of Air Lease Corporation’s acquisition by a consortium led by Sumitomo Corporation, SMBC Aviation Capital, Apollo, and Brookfield represents one of the most significant transactions in the aircraft leasing industry’s history, with implications that extend far beyond the companies directly involved. The $7.4 billion cash transaction, which values Air Lease at $65.00 per share, represents a substantial premium over the company’s historical trading levels and reflects the strategic value that the acquiring consortium places on Air Lease’s assets, market position, and growth prospects.
The structure of the acquisition reveals the sophisticated approach that the consortium has taken to this transformational transaction. Upon closing, Air Lease will be renamed Sumisho Air Lease Corporation and will remain a separate entity, preserving the operational independence that has been crucial to its success while gaining access to the financial resources and strategic capabilities of its new owners. This approach suggests that the acquirers recognize the value of Air Lease’s existing management team, operational systems, and customer relationships, while seeking to enhance these capabilities through integration with their broader aviation ecosystem.
SMBC Aviation Capital’s role in the transaction is particularly significant, as the company will acquire Air Lease’s order book and act as servicer to the majority of Sumisho Air Lease’s portfolio. This arrangement creates substantial synergies between the two organizations while significantly expanding SMBC Aviation Capital’s scale and capabilities. The integration of Air Lease’s 241 aircraft on order, including 36 Airbus A220s, 130 A320/A321neos, a single A330neo, 64 Boeing 737 Max jets, and 10 787-9/10s, will substantially diversify SMBC’s current order book and enhance its ability to serve airline customers across different market segments.
The financial structure of the transaction demonstrates the acquiring consortium’s confidence in the aircraft leasing sector’s long-term prospects and their ability to generate attractive returns from Air Lease’s assets. The $28.2 billion total consideration, including debt obligations to be assumed or refinanced net of cash, represents a significant commitment of capital that reflects the strategic value of aircraft leasing platforms in the current market environment. The involvement of Apollo and Brookfield as capital providers brings sophisticated institutional investment capabilities to the transaction, while Sumitomo Corporation’s deep expertise in aviation leasing provides strategic guidance and operational synergies.
“The transaction’s timing coincides with favorable market conditions in the aircraft leasing sector, as supply chain constraints and strong demand have created a supportive environment for lease rates and asset values.”
The transaction’s timing coincides with favorable market conditions in the aircraft leasing sector, as supply chain constraints and strong demand have created a supportive environment for lease rates and asset values. The acquiring consortium is positioning itself to capitalize on these favorable conditions while building a platform capable of serving the evolving needs of airline customers in an increasingly complex and capital-intensive industry. The scale and financial strength that will result from this combination should enable Sumisho Air Lease to compete more effectively for large-scale transactions and provide more comprehensive solutions to airline customers. Air Lease Corporation’s third quarter 2025 performance exemplifies a company successfully navigating the complex dynamics of a transforming aviation industry while preparing for a fundamental ownership transition that will reshape its strategic positioning and competitive capabilities. The company’s delivery of thirteen new aircraft and $685 million investment in fleet expansion during the quarter demonstrates its continued commitment to growth and modernization, even as it manages the complexities of a $7.4 billion acquisition by a consortium led by Sumitomo Corporation and SMBC Aviation Capital.
The strategic significance of this acquisition extends far beyond Air Lease itself, representing a watershed moment in the aircraft leasing industry’s evolution toward greater scale, financial strength, and operational sophistication. The transaction creates a platform with enhanced capabilities to serve airline customers’ increasingly complex needs while positioning the combined entity to capitalize on favorable industry dynamics including supply-demand imbalances, strong lease rates, and sustained growth in global air travel demand.
Q: How many aircraft did Air Lease deliver in Q3 2025? Q: What is the significance of the $7.4 billion acquisition? Q: How does Air Lease manage supply chain challenges? Q: What is Air Lease’s current fleet size? Q: Who founded Air Lease Corporation?
Air Lease Corporation’s Third Quarter 2025: Strategic Fleet Expansion Amid Industry Transformation and $7.4 Billion Acquisition
Background and Historical Context of Air Lease Corporation
Third Quarter 2025 Operational Performance and Fleet Expansion
The Transformational $7.4 Billion Acquisition Deal
Conclusion
FAQ
A: Air Lease delivered thirteen new aircraft in the third quarter of 2025, including two Airbus A220s, two Airbus A321neos, six Boeing 737-8s, and three Boeing 737-9s.
A: The acquisition by Sumitomo Corporation, SMBC Aviation Capital, Apollo, and Brookfield represents a major consolidation in the aircraft leasing industry, positioning the new entity (Sumisho Air Lease Corporation) for enhanced scale, financial strength, and market reach.
A: Air Lease leverages long-term relationships with manufacturers and a diversified order book to secure new aircraft deliveries and maintain a modern fleet, despite industry-wide supply chain constraints.
A: As of September 30, 2025, Air Lease owns 503 aircraft and manages an additional 50 aircraft.
A: Air Lease was founded in 2010 by Steven F. Udvar-Házy, a pioneer in the aircraft leasing industry.
Sources
Photo Credit: Boeing – Airbus – Montage – 737 MAX and A220
Aircraft Orders & Deliveries
EgyptAir Receives First Airbus A350-900 to Modernize Fleet
EgyptAir accepts its first Airbus A350-900, starting a fleet overhaul with 16 aircraft to expand long-haul routes and improve efficiency.
This article is based on an official press release from Airbus and additional fleet data.
EgyptAir has officially taken delivery of its first Airbus A350-900, registered as SU-GGE, marking a significant milestone in the carrier’s modernization strategy. The handover, which took place on February 9, 2026, positions the Cairo-based airline as the first operator of the A350-900 in North Africa.
According to an official press release from Airbus, this aircraft is the first of 16 A350-900s ordered by the Egyptian flag carrier. The delivery underscores EgyptAir’s commitment to phasing out older wide-body jets while expanding its long-haul network capabilities to new destinations in North America and Asia.
The arrival of the A350-900 represents a pivotal shift in EgyptAir’s long-haul operations. The airline originally signed for 10 aircraft during the Dubai Airshow in November 2023, later expanding the commitment with a top-up order for six additional units. These new airframes are intended to replace the carrier’s aging Boeing 777-300ER fleet, offering improved operating economics and passenger comfort.
In a statement regarding the initial order, Yehia Zakaria, EgyptAir Holding Chairman and CEO, highlighted the flagship status of the new type:
“The A350-900 will be our flagship aircraft… adding the world’s most modern and efficient widebody aircraft to our fleet will be instrumental in expanding our offering.”
Christian Scherer, Chief Commercial Officer at Airbus, noted the economic advantages the aircraft brings to the airline’s network:
“The A350 is the one and only aircraft enabling EgyptAir to open up its network with benchmark economic efficiency, not to mention passenger comfort.”
EgyptAir has outlined a phased entry-into-service plan for the new fleet. Initially, the aircraft will be deployed on trunk routes to London and Paris to facilitate crew familiarization. Following this integration period, the airline plans to leverage the A350’s 9,700 nautical mile range to launch non-stop services to the U.S. West Coast and key Asian markets, including Shanghai, Beijing, and Tokyo.
The new A350-900 features a two-class configuration designed to maximize capacity while introducing updated premium amenities. According to fleet data, the aircraft accommodates a total of 340 passengers. Technological upgrades are a focal point of the new cabin. The aircraft is equipped with Panasonic Avionics’ Astrova in-flight entertainment system, providing 4K OLED screens and high-fidelity audio. Additionally, passengers across all classes will have access to USB-C fast charging ports and high-speed Wi-Fi connectivity.
The transition to the A350-900 aligns with broader industry sustainability goals. Powered by two Rolls-Royce Trent XWB engines, the aircraft is reported to burn 25% less fuel compared to the previous generation aircraft it replaces. This efficiency gain corresponds to a 25% reduction in CO2 emissions.
Furthermore, the A350 is recognized as the quietest aircraft in its class, possessing a noise footprint 50% smaller than older jets, a critical factor for operations at noise-sensitive airports in Europe and North America.
EgyptAir’s delivery secures its position as the sole active operator of the A350-900 in the North African region, a status solidified by the shifting strategies of its neighbors. While other carriers in the region had previously expressed interest in the type, market dynamics have led to cancellations and delays.
For instance, Air Algérie cancelled its order for A350-1000s in early 2025, opting instead for Airbus A330-900neos. Similarly, Tunisair cancelled its A350 commitments in 2013. Other regional orders, such as those from Libyan carriers Afriqiyah Airways and Libyan Airlines, remain stalled due to long-standing instability. Consequently, EgyptAir currently faces no direct regional competition operating this specific airframe, potentially offering it a product advantage on competitive routes connecting Africa to Europe and the Americas.
Sources:
EgyptAir Accepts Delivery of First Airbus A350-900, Initiating Major Fleet Overhaul
Fleet Modernization and Strategic Expansion
Operational Deployment
Cabin Configuration and Passenger Experience
Environmental Performance
AirPro News Analysis: Regional Market Context
Airbus Press Release
Photo Credit: Airbus
Aircraft Orders & Deliveries
India to Purchase $80B Boeing Aircraft in $500B US Trade Deal
India plans to buy up to $80 billion in Boeing aircraft within a $500 billion trade pact with the US, including tariff reductions and energy diversification.
This article summarizes reporting by CNBC and Priyanka Salve, alongside official government statements and AirPro News analysis.
In a landmark development for global aviation and trade, India has announced plans to purchase up to $80 billion in Boeing aircraft as part of a broader strategic partnership with the United States. According to reporting by CNBC, India’s Minister of Commerce and Industry, Piyush Goyal, confirmed that New Delhi expects to sign a formal trade deal with the U.S. in March 2026.
The aviation commitment is the centerpiece of a massive $500 billion trade pact intended to span the next five years. While the headline figure for Boeing jets stands between $70 billion and $80 billion, officials indicate that the total value of the aviation sector deal, including engines, MRO services, could exceed $100 billion.
This agreement signals a profound shift in India’s geopolitical and economic strategy, trading market access and energy realignment for relief from punitive U.S. tariffs.
The scale of the reported aircraft purchase underscores India’s position as the fastest-growing aviation market in the world. According to details shared by Minister Goyal and summarized by CNBC, the deal allocates a specific $70–$80 billion tranche for Boeing airframes.
Industry observers note that this figure likely aggregates the value of deliveries from existing record-breaking orders alongside new commitments. Air India, owned by the Tata Group, placed a historic order in 2023 for 470 aircraft (split between Boeing and Airbus) and finalized an additional order for 30 Boeing 737 MAX jets in January 2026. Similarly, Akasa Air holds a substantial order book extending through 2032.
Boeing executives have previously confirmed plans to deliver approximately two aircraft per month to Indian carriers to meet surging travel demand. The inclusion of engines and aftermarket services pushes the total aviation package over the $100 billion mark, cementing the U.S. aerospace giant’s foothold in South Asia.
Contextualizing the Order Book: While the $80 billion figure is staggering, we believe it is crucial to interpret this as a “delivery value” commitment over the five-year pact rather than solely a new purchase agreement for unannounced jets. At current list prices (after standard discounts), $80 billion represents roughly 600 to 800 narrowbody jets or a significant mix of widebodies. Given Boeing’s current backlog constraints, fulfilling $80 billion in entirely new orders within five years would be logistically improbable. It is more likely that the Indian government is guaranteeing the execution and payment of the massive backlogs already held by Air India, Akasa, and potentially SpiceJet, framing these commercial milestones as diplomatic victories. Beyond aviation, the trade deal outlines a reciprocal reduction in trade barriers. The United States has agreed to slash tariffs on Indian imports from 50% to 18%, a move expected to boost Indian exporters. In exchange, India has committed to purchasing $500 billion in American goods and services over five years.
A critical component of the negotiations involves India’s energy procurement. Following the invasion of Ukraine, India became a primary consumer of discounted Russian crude. However, the new trade framework reportedly includes provisions for India to shift away from Russian energy.
U.S. President Donald Trump explicitly claimed that Prime Minister Narendra Modi agreed to stop buying Russian oil. However, the Indian Ministry of External Affairs (MEA) has maintained a more nuanced public stance. MEA spokesperson Randhir Jaiswal emphasized that energy security remains the nation’s “supreme priority,” noting that India would diversify based on commercial viability. This includes potential resumption of imports from Venezuela and increased purchases from the United States.
“Energy security is the supreme priority [for India’s 1.4 billion citizens].”
— Randhir Jaiswal, MEA Spokesperson (via press briefing)
The trade deal has triggered sharp criticism within India. The opposition Congress party has characterized the agreement as a surrender of sovereignty, particularly regarding the pressure to alter energy partners and lower agricultural tariffs.
Opposition leaders Mallikarjun Kharge and Jairam Ramesh have voiced concerns that the influx of U.S. agricultural products could harm local farmers, warning of potential protests similar to those seen in 2021. Minister Goyal has defended the pact, asserting that it protects sensitive sectors like dairy and agriculture while securing essential technology and energy partnerships.
When will the deal be signed? Is the $80 billion for new planes only? What does the U.S. offer in return? Will India stop buying Russian oil?
Breakdown of the $100 Billion Aviation Commitment
Commercial Implications
AirPro News Analysis
The Broader Strategic Trade Pact
The “Russian Oil” Pivot
Domestic Opposition and Political Fallout
Frequently Asked Questions
According to Minister Piyush Goyal, the formal trade agreement is scheduled to be signed in March 2026, following a joint statement expected in early February.
The figure likely represents a mix of new commitments and the value of deliveries from existing massive orders (like Air India’s 2023 deal) scheduled for the next five years.
The U.S. has agreed to reduce tariffs on Indian goods from 50% to 18%, significantly improving market access for Indian exporters.
While the U.S. President claims an agreement is in place, Indian officials state they are diversifying energy sources based on commercial viability and security, without explicitly confirming a total ban.
Sources
Photo Credit: Daily Shipping Times
Aircraft Orders & Deliveries
CDB Aviation Delivers Three Boeing 737-8 Jets to WestJet in 2026
CDB Aviation delivers three Boeing 737-8 aircraft to WestJet, increasing leased jets to 13 and supporting fleet growth for summer 2026.
This article is based on an official press release from CDB Aviation.
On February 5, 2026, CDB Aviation announced the successful delivery of three Boeing 737-8 aircraft to WestJet. According to the official press release from the Irish subsidiary of China Development Bank Financial Leasing Co., Ltd., these deliveries mark the completion of a lease agreement originally announced in January 2024. The addition of these aircraft brings the total number of CDB Aviation-leased jets in the WestJet fleet to 13, reinforcing a strategic partnership that began in 2020.
The newly delivered aircraft are part of WestJet’s broader strategy to modernize its fleet and expand its network capacity for the 2026 summer schedule. By securing these airframes directly from CDB Aviation’s existing order book, WestJet has bypassed some of the manufacturing delays currently affecting the global aviation supply-chain. The airline continues to hold the largest narrowbody order book of any Canadian carrier.
The three Boeing 737-8s (commonly referred to as the MAX 8) were delivered on February 5, 2026. These aircraft were leased directly from CDB Aviation’s order book with Boeing, a mechanism that allows airlines to access capacity more quickly than through direct manufacturer orders in a constrained market.
According to data associated with the delivery, WestJet’s 737-8 fleet is typically configured to seat 174 passengers, split between 12 Premium seats and 162 Economy seats. The aircraft are equipped with satellite-supported Wi-Fi and in-seat power, aligning with the carrier’s focus on passenger connectivity. The 737-8 is powered by CFM LEAP-1B engines, which deliver approximately 15% greater fuel efficiency and a 40% reduction in noise footprint compared to the previous generation 737-800NG.
Both companies highlighted the strength of their ongoing relationship. Luís da Silva, Head of Commercial, Americas at CDB Aviation, emphasized the history between the two entities in a statement included in the release:
“We’ve built a strong partnership with the WestJet team since the inaugural transaction between our companies in 2020. To date, we have financed and leased a total of 13 737-8 aircraft which support this strong and growing Canadian airline.”
Jennifer Bue, Senior Vice President and Treasurer at WestJet, also commented on the significance of the delivery for the airline’s growth trajectory:
“CDB Aviation is a valued partner of WestJet. The relationship enables WestJet to continue our momentum driving our growth strategy.”
This delivery comes at a critical time for WestJet as the airline approaches a total fleet size of nearly 200 aircraft, including its subsidiaries. The additional capacity is slated to support an aggressive network expansion, including new international connections such as Toronto to Medellín, Colombia, and increased frequencies to sun destinations. The Role of Lessors in a Constrained Supply Chain
The delivery of these three aircraft highlights a vital trend in the 2026 aviation market: the increasing reliance on lessors to bridge the gap caused by OEM production delays. While manufacturers work to clear backlogs, lessors like CDB Aviation, who hold significant positions in the delivery queue, are becoming essential partners for airlines needing immediate lift. For WestJet, leasing directly from CDB’s order book allows them to circumvent the long wait times associated with direct orders, ensuring they can capitalize on the projected travel demand for the summer 2026 season. This transaction underscores that in the current climate, access to delivery slots is just as valuable as capital.
How many aircraft does CDB Aviation lease to WestJet? What is the primary benefit of the Boeing 737-8 for WestJet? When was this deal originally agreed upon?
CDB Aviation Delivers Three Boeing 737-8 Aircraft to WestJet
Transaction Details and Fleet Configuration
Aircraft Specifications
Executive Commentary
Strategic Implications for 2026
AirPro News analysis
Frequently Asked Questions
With the delivery of these three aircraft on February 5, 2026, CDB Aviation now leases a total of 13 Boeing 737-8 aircraft to WestJet.
The 737-8 offers significantly improved fuel efficiency (approximately 15% better than the 737NG) and a longer range (approx. 3,550 nm), allowing WestJet to operate routes like Western Canada to Europe or Toronto to South America more economically.
The lease agreement for these specific aircraft was originally announced on January 23, 2024.
Sources
Photo Credit: CDB Aviation
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