Aircraft Orders & Deliveries
ACG Reports Strong Q3 2025 Financials Signaling Growth in Aircraft Leasing
ACG posts robust Q3 2025 results with $934.7M revenue, fleet expansion, and strong liquidity, reflecting positive trends in aircraft leasing.
Aviation Capital Group LLC (“ACG”), a key player in the global aircraft asset management space, has unveiled strong financial results for the third quarter of 2025, painting a picture of strategic growth and operational strength. The performance of firms like ACG is often seen as a barometer for the health of the entire aviation industry. When lessors do well, it typically means airlines are expanding their fleets and passenger demand is robust, reflecting positive momentum across the travel and tourism sectors. ACG’s latest numbers suggest that the industry continues its solid trajectory, navigating a complex global economic landscape with confidence.
Founded in 1989, ACG has established itself as a premier full-service aircraft lessor, managing a significant portfolio of commercial jets for airlines worldwide. The company’s business model involves purchasing new, in-demand aircraft and leasing them to airlines, which allows carriers to operate modern fleets without the immense capital outlay required for direct purchases. This symbiotic relationship is crucial for airline flexibility and growth. ACG’s Q3 results not only highlight its own financial health but also underscore the prevailing industry trends, such as the push for fleet modernization and the sustained recovery in air travel.
ACG’s financial disclosure for the nine months ending September 30, 2025, reveals a company in a powerful position. Total revenues reached $934.7 million, with a total pre-tax net income of $668.8 million. It is important to note that this income figure includes a significant net benefit of $544.8 million from the settlement of insurance claims related to losses from its Russia exposure. Excluding these proceeds, the pre-tax net income stood at a solid $124.0 million for the nine-month period. This performance demonstrates core profitability even without the one-time insurance settlement.
The company’s operational efficiency has also seen marked improvement. Cash flow from operations for the first nine months of the year was $502.2 million, a notable 17% increase compared to the same period in the previous year. In a statement, CEO and President Tom Baker attributed this growth to higher aircraft utilization, a lower cost of funds, and a strategic focus on acquiring attractive aircraft while divesting from less profitable assets. These actions have directly contributed to strengthening the company’s bottom line and competitive stance.
From a balance sheet perspective, ACG presents a formidable profile. The company reported total assets of $13.7 billion and an impressive available liquidity of $5.8 billion as of September 30, 2025. This substantial liquidity positions ACG to comfortably fund maturing debt, finance new aircraft purchases, and pursue further growth opportunities. Furthermore, its net debt-to-equity ratio is 1.9x, well below its long-term target of 2.5x, indicating a conservative and healthy leverage position that provides significant financial flexibility.
“With $5.8 billion of available liquidity and industry leading leverage of 1.9x, we are poised to accelerate growth and performance of the business in 2026 and beyond.”
A cornerstone of ACG’s success is its dynamic and forward-looking fleet management strategy. As of the end of Q3, the company’s portfolio consisted of approximately 470 owned, managed, and committed aircraft leased to around 90 airlines in about 50 countries. During the third quarter alone, ACG added sixteen aircraft to its portfolio. This included twelve new-technology, fuel-efficient models such as the Airbus A320neo family, Boeing 737 MAX family, Boeing 787, and Airbus A330neo. This focus on modern aircraft aligns with the global airline industry’s push for improved fuel efficiency and reduced emissions.
The company’s growth has been both organic and acquisitive. ACG has been actively acquiring aircraft, including completing the purchase of thirteen aircraft from a 20-aircraft portfolio acquired from Avolon Aerospace Leasing Limited within the first nine months of 2025. This strategic expansion has grown the portfolio by 12% in that period while simultaneously improving its overall credit profile. Such moves are indicative of a broader trend in the leasing market, where scale and a high-quality, modern asset base are critical for success.
The outlook for the aircraft leasing sector in 2025 remains stable and positive. Lessors are benefiting from a supply-and-demand imbalance for commercial-aircraft, particularly for narrow-body jets. This environment, coupled with improving airline profitability, creates favorable conditions for companies like ACG. The industry is seeing a rebound in passenger traffic and a strong focus on fleet modernization, which drives demand for the new-technology aircraft that ACG is actively acquiring. Aviation Capital Group’s third-quarter results for 2025 clearly demonstrate a company executing a well-defined strategy. Through disciplined financial management, strategic fleet expansion focused on new-technology aircraft, and improved operational efficiencies, ACG has strengthened its market position. The significant increase in operating cash flow and a robust liquidity position provide a solid foundation for capitalizing on future opportunities in the dynamic aviation marketplace.
Looking ahead, ACG appears well-equipped to navigate the opportunities and challenges of the global aviation landscape. The continued demand for air travel and the airline industry’s imperative to operate more efficient and sustainable fleets play directly to the strengths of ACG’s business model. The company’s strong balance sheet and strategic focus suggest it is on a clear runway for sustained growth and performance into 2026 and beyond.
Question: What does Aviation Capital Group (ACG) do? Question: What were the main highlights of ACG’s Q3 2025 financial-results? Question: How is ACG managing its aircraft fleet?
ACG Soars in Q3 2025, Signaling Robust Health in Aircraft Leasing Sector
Dissecting the Financial Performance
Strategic Fleet Management and Market Outlook
Conclusion: A Clear Runway for Growth
FAQ
Answer: ACG is a global, full-service aircraft asset manager. It primarily owns and manages a portfolio of commercial jet aircraft, which it leases to airlines around the world. It also provides asset management services and financing solutions.
Answer: For the nine months ended September 30, 2025, ACG reported total revenues of $934.7 million, a 17% increase in cash flow from operations, and total assets of $13.7 billion. The company also maintained a strong liquidity position of $5.8 billion and a low net debt-to-equity ratio of 1.9x.
Answer: ACG is actively growing and modernizing its fleet. In Q3 2025, it added 16 aircraft, 12 of which were new-technology models like the A320neo and 737 MAX. The company grew its portfolio by 12% in the first nine months of 2025 through both direct orders and strategic acquisitions.
Sources
Photo Credit: Aviation Capital Group
Aircraft Orders & Deliveries
DAE Capital Nears Acquisition of Macquarie AirFinance Aircraft Lessor
DAE Capital is finalizing a deal to acquire Macquarie AirFinance, expanding its fleet and securing key aircraft delivery slots amid industry consolidation.
This article summarizes reporting by Reuters.
Dubai Aerospace Enterprise (DAE) Capital is reportedly in the final stages of negotiations to acquire a controlling stake in Dublin-based lessor Macquarie AirFinance. According to exclusive reporting by Reuters on February 22, 2026, the Dubai-based giant has emerged as the leading contender in a competitive bidding process, potentially solidifying its status as one of the world’s premier aviation lessors.
The potential transaction highlights the intense consolidation currently reshaping the global aircraft leasing sector. As supply chain constraints continue to plague major manufacturers, established lessors are increasingly turning to Mergers and Acquisitions to secure fleet growth and valuable delivery slots.
Sources close to the matter told Reuters that DAE Capital is “closing in” on an agreement to purchase the controlling interest in Macquarie AirFinance. The deal follows a strategic review by Macquarie Group, which reportedly engaged JP Morgan to explore options for the business, including a potential sale.
The bidding process reportedly attracted significant interest from other major players in the Middle East, underscoring the region’s growing dominance in aviation finance. Reuters notes that DAE competed against:
While the final terms have not been publicly disclosed, the acquisition targets the ownership stakes currently held by Macquarie Asset Management (50%), the PGGM Infrastructure Fund (25%), and the Australian Retirement Trust (25%).
According to the Reuters report, DAE Capital is “closing in” on a deal to acquire a controlling stake in the Dublin-based lessor.
If completed, this acquisition would represent a significant expansion for DAE Capital, which has pursued an aggressive growth strategy in recent years. By integrating Macquarie AirFinance’s portfolio, DAE would cement its position within the top tier of global aircraft lessors.
Industry data indicates that a primary driver for this transaction is Macquarie’s robust order book. With original equipment Manufacturers (OEMs) like Boeing and Airbus facing multi-year backlogs, acquiring a lessor with confirmed delivery slots is one of the few viable paths for near-term growth.
Macquarie AirFinance holds a portfolio of approximately 225 to 233 owned and managed aircraft. Crucially, this includes confirmed orders for 70 Boeing 737 MAX aircraft, alongside additional Airbus A220 and A320neo jets. For DAE, gaining access to these delivery slots would provide a critical pipeline of new technology aircraft at a time when production delays are keeping lease rates at historic highs. DAE Capital enters this potential deal from a position of financial strength. According to company filings for the fiscal year 2025, DAE reported a net profit of approximately $702.2 million, a year-over-year increase of roughly 47%. As of year-end 2025, DAE’s total assets stood at approximately $16.5 billion, with a fleet of roughly 604 owned and managed aircraft.
The addition of Macquarie’s fleet, valued at roughly $6.4 billion, would complement DAE’s existing holdings. Macquarie’s portfolio is split fairly evenly between Airbus and Boeing narrowbodies, assets that are currently in high demand due to the global shortage of single-aisle lift.
We view this potential acquisition as a clear indicator that the aviation finance market has shifted firmly into a consolidation phase. The chronic inability of manufacturers to meet delivery targets has created a “seller’s market” for existing aircraft portfolios. Lessors with available metal or confirmed delivery slots are commanding premium valuations.
For DAE, this move appears to be a continuation of a long-term strategy to achieve scale through acquisition rather than solely through organic orders. Having previously acquired AWAS in 2017 and Nordic Aviation Capital (NAC) for $2 billion, DAE has demonstrated a capability to integrate large, complex portfolios. This deal would further dilute the influence of Western-centric lessors, shifting the center of gravity in aviation finance toward the Middle East, where sovereign wealth capital is actively seeking dollar-denominated, real assets.
Who currently owns Macquarie AirFinance? How large is the combined fleet? Why is the order book important? Sources: Reuters, DAE Capital Filings, Macquarie Asset Management
DAE Capital Reportedly Poised to Acquire Macquarie AirFinance
Deal Dynamics and Competitive Landscape
Strategic Rationale: The Race for Scale
The Value of the Order Book
Financial Strength and Fleet Composition
AirPro News Analysis
Consolidation in a “Seller’s Market”
Frequently Asked Questions
As of the latest reports, the company is owned by a consortium comprising Macquarie Asset Management (50%), PGGM Infrastructure Fund (25%), and the Australian Retirement Trust (25%).
DAE Capital currently manages approximately 604 aircraft. Macquarie AirFinance manages roughly 225 aircraft. A combined entity would oversee a fleet approaching 830 aircraft, placing it firmly among the largest lessors globally.
Airlines are desperate for new, fuel-efficient aircraft, but Boeing and Airbus are sold out for several years. Buying a lessor with an existing order book (like Macquarie’s 70 Boeing 737 MAX orders) allows the buyer to skip the line and secure immediate future growth.
Photo Credit: DAE Capital
Aircraft Orders & Deliveries
Adani and Embraer Plan E175 Assembly Line in India
Adani Defence & Aerospace and Embraer signed an MoU to establish India’s first commercial aircraft assembly line for the E175 regional jet.
Adani Defence & Aerospace and Embraer have officially signed an enhanced Memorandum of Understanding (MoU) to establish a Final Assembly Line (FAL) for the Embraer E175 regional jet in India. The agreement, exchanged in the presence of Brazilian President Luiz Inácio Lula da Silva and Indian Commerce Minister Piyush Goyal, marks a potential turning point for India’s aviation sector, aiming to transition the nation from a pure importer to a manufacturer of commercial-aircraft.
According to the company press release, this partnerships focuses on setting up a comprehensive aviation ecosystem in India. While the centerpiece is the assembly of the E175, the collaboration extends to establishing maintenance, repair, and overhaul (MRO) facilities, as well as pilot and technical training centers. The initiative aligns with the Indian government’s “Atmanirbhar Bharat” (Self-Reliant India) vision, seeking to localize critical defense and aerospace capabilities.
The proposed facility would represent India’s first private-sector plant dedicated to assembling commercial passenger aircraft. Adani Defence & Aerospace, already a significant player in the defense manufacturing sector, views this move as a strategic diversification into civil aviation. Embraer, the world’s third-largest aircraft manufacturers, is positioning itself to capture a larger share of India’s rapidly expanding regional market.
The MoU outlines a broad scope of cooperation. Beyond the physical assembly of the jets, the partners intend to build a local supply chain to support production. This includes sourcing components domestically, which would gradually increase the indigenous content of the aircraft. The inclusion of MRO and training facilities suggests a long-term commitment to supporting the lifecycle of the fleet within India, rather than relying on external support networks.
“The partnership extends beyond simple assembly to include establishment of a comprehensive supply chain… and pilot and technical training centers.”
, Summary of partnership details based on Embraer announcements
The Embraer E175 is a regional jet typically configured to carry between 76 and 88 passengers. It features a 2×2 seating configuration, eliminating the middle seat, a distinct passenger comfort advantage over larger narrow-body jets. The aircraft is specifically targeted at “thin” routes that connect Tier-2 and Tier-3 cities, where passenger demand is growing but may not yet justify the use of larger 180-seat aircraft like the Airbus A320 or Boeing 737.
This aircraft is positioned to serve India’s UDAN (Ude Desh ka Aam Nagrik) regional connectivity scheme. Industry analysis suggests that while turboprops like the ATR-72 currently dominate this segment, they suffer from speed limitations and lower passenger appeal on longer regional sectors. The E175 offers jet speeds and comfort, potentially making it a viable alternative for routes spanning 60 to 120 minutes. While the MoU represents a significant diplomatic and industrial milestone, market analysts caution that the project’s realization faces substantial commercial hurdles. The primary challenge is order volume. According to industry reports and market research, Embraer has indicated that establishing a local FAL is commercially viable only if the partnership secures at least 200 firm orders from Indian carriers.
Currently, Star Air is the primary operator of the E175 in India. While the airline plans to expand its fleet significantly by 2030, its volume alone is unlikely to sustain a full assembly line. Consequently, the viability of the project likely hinges on securing a major order from a dominant market player, such as IndiGo, which is reportedly evaluating regional jets including the E175, Airbus A220, and ATR 72-600.
To bridge the cost gap associated with domestic manufacturing, the Indian government is reportedly developing a Production Linked Incentive (PLI) scheme for civil aircraft. Market data suggests this scheme could be valued between ₹12,000 and ₹15,000 crore, potentially mandating high levels of domestic content by 2028-29. If implemented, this policy would be a critical enabler for the Adani-Embraer joint venture.
The “Chicken-and-Egg” Dilemma
We observe that this deal is currently in a fragile “proposal” stage. The requirement for 200 firm orders creates a classic chicken-and-egg scenario: airlines may be hesitant to commit to a large fleet without a guaranteed local support ecosystem, while the manufacturers are hesitant to build the ecosystem without the orders. The involvement of the Adani Group, with its extensive portfolio in airports and infrastructure, may provide the financial stability and political leverage needed to break this deadlock. However, without a commitment from a “whale” customer like IndiGo, the FAL risks remaining a proposal rather than a concrete industrial reality.
What is the Embraer E175? When will the factory be built? Who are the potential customers? Sources: Embraer Press Release, Industry Market Research (Web Search)
Establishing India’s First Commercial Aircraft Assembly Line
Scope of the Agreement
The E175 and Regional Connectivity
Addressing the UDAN Scheme
Market Realities and Strategic Hurdles
Government Incentives
AirPro News Analysis
Frequently Asked Questions
The E175 is a regional jet capable of carrying 76 to 88 passengers, designed for short-to-medium haul routes. It is widely used in North America and is gaining traction in other markets for connecting smaller cities.
No specific groundbreaking date has been set. The project is currently at the MoU stage, and actual construction is likely contingent on securing sufficient aircraft orders from Indian airlines.
Star Air is currently the only Indian operator of the E175. However, for the factory to be viable, the partnership is likely targeting large orders from major carriers like IndiGo.
Photo Credit: Embraer
Aircraft Orders & Deliveries
Aviation Capital Group Acquires 24-Aircraft Portfolio from Avolon
Aviation Capital Group expands its fleet by acquiring 24 aircraft from Avolon, focusing on new technology models leased globally.
This article is based on an official press release from Aviation Capital Group (ACG).
Aviation Capital Group LLC (ACG) announced on February 19, 2026, that it has signed definitive agreements to acquire a portfolio of 24 Commercial-Aircraft from Avolon. This transaction represents a significant expansion for ACG and marks the second major portfolio trade between the two global lessors in less than 12 months.
According to the company’s announcement, the acquisition aligns with ACG’s strategy to scale its operations and modernize its fleet profile. The portfolio consists predominantly of new-technology aircraft, which are currently in high demand across the aviation sector due to ongoing production delays at major Manufacturers.
The deal underscores the growing trend of lessor-to-lessor trading as a primary mechanism for fleet management in the current market environment. By acquiring assets with existing leases, ACG secures immediate revenue generation while Avolon continues its capital recycling program following recent large-scale Investments.
The portfolio acquired by ACG is diverse, comprising both narrowbody and widebody assets. According to the press release and transaction details released by the companies, the 24-aircraft package includes:
Data provided regarding the portfolio’s status as of February 1, 2026, indicates that the fleet has an average age of approximately 4.5 years and a weighted average remaining lease term of roughly 8.9 years. The aircraft are currently on lease to 17 different Airlines spread across 16 countries. ACG noted that this transaction will introduce four new airline customers to its client roster.
Thomas Baker, CEO and President of ACG, highlighted the strategic importance of the acquisition in a statement:
“Proactive aircraft trading is an important pillar of our growth Strategy… It also enhances the sustainability of our fleet, already among the youngest in the industry.”
, Thomas Baker, CEO of ACG
For the seller, Avolon, this divestment appears to be a calculated move to manage liquidity and rebalance its portfolio. This sale follows Avolon’s significant acquisition of Castlelake Aviation, which closed in January 2026 and involved the purchase of 118 aircraft. By selling this 24-aircraft tranche to ACG, Avolon effectively recycles capital to maintain a robust balance sheet. Ross O’Connor, CFO of Avolon, commented on the demand for aircraft assets in the current market:
“The transaction builds on our record trading performance in 2025, reflecting the continuing strong demand we are seeing for our assets.”
, Ross O’Connor, CFO of Avolon
We observe that the secondary market for commercial aircraft has become increasingly active in early 2026. With original equipment manufacturers (OEMs) like Airbus and Boeing facing persistent supply chain constraints, lessors are turning to one another to meet growth targets.
This “trading between giants” allows firms like ACG to bypass long delivery wait times and instantly add young, revenue-generating assets to their books. Conversely, it allows sellers like Avolon to monetize assets at premium values driven by the industry-wide shortage of airworthy lift. The fact that ACG and Avolon executed a similar 20-aircraft deal in 2025 suggests a deepening trading relationship between the two firms, facilitating efficient capital deployment for both parties.
This transaction is the latest in a series of dealings between ACG and Avolon. The relationship has accelerated over the last year:
Both companies appear well-capitalized to execute these transactions. Financial disclosures indicate that Avolon priced a $1.5 billion senior unsecured note offering in February 2026, while ACG closed a $1 billion note offering in January 2026.
Aviation Capital Group Acquires 24-Aircraft Portfolio from Avolon in Major Fleet Expansion
Transaction Overview and Fleet Composition
Strategic Rationale for Avolon
AirPro News Analysis: The Secondary Market Boom
Timeline of the Partnership
Sources
Photo Credit: Aviation Capital Group
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