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
Aergo Capital Acquires Boeing 737 MAX 8 from Aircastle Leased to WestJet
Aergo Capital acquires a Boeing 737 MAX 8 from Aircastle currently leased to WestJet, highlighting active secondary market demand and expanding Aergo’s aviation portfolio.
This article is based on an official press release from Aergo Capital.
Dublin-based aircraft leasing and asset management platform Aergo Capital has announced the acquisition of one Boeing 737 MAX 8 aircraft from Aircastle. The transaction, announced on December 16, 2025, involves an aircraft bearing Manufacturer Serial Number (MSN) 60513, which is currently on lease to Canadian carrier WestJet.
This acquisition marks a continuation of Aergo Capital’s strategy to invest in modern, fuel-efficient narrowbody aircraft. According to the company’s official statement, the deal underscores the active secondary market for the 737 MAX and strengthens the trading relationship between the two major lessors. The aircraft remains in operation with WestJet, ensuring continuity for the airline while transferring asset ownership to Aergo.
The deal highlights the growing collaboration between Aergo Capital and WestJet, following significant transactions earlier in the operational year. By acquiring this asset, Aergo expands its portfolio of liquid, in-demand aviation assets while Aircastle executes its strategy of active portfolio management.
The specific asset involved in the transaction is a Boeing 737 MAX 8, identified by MSN 60513. Fleet data indicates this aircraft operates under the registration C-GRAX. Originally delivered during the initial rollout phase of the MAX program, the aircraft is approximately eight years old and represents the current generation of Boeing’s narrowbody technology.
Fred Browne, Chief Executive Officer of Aergo Capital, emphasized the importance of the acquisition in strengthening ties with both the seller and the lessee. In a statement regarding the deal, Browne noted:
“We are pleased to complete the acquisition of this Boeing 737 MAX 8 from Aircastle… I also extend my thanks to WestJet for their continued partnership and support.”
On the seller’s side, Aircastle, a Stamford-based lessor owned by Marubeni Corporation and Mizuho Leasing, viewed the sale as a testament to their strong commercial network. Michael Inglese, CEO of Aircastle, commented on the relationship between the firms:
“We value the long-standing trading relationship we have built with Aergo… The acquisition underscores the strong commercial relationship between Aergo and Aircastle.”
This transaction is not an isolated event but rather part of a deepening relationship between Aergo Capital and WestJet. In August 2024, Aergo completed a significant sale-and-leaseback transaction involving eight Boeing 737-800 aircraft with the Canadian airline. That deal marked the first major collaboration between the two entities. The addition of this 737 MAX 8 further cements Aergo’s position as a key partner in WestJet’s fleet financing structure. For Aircastle, the sale aligns with a strategy of capital recycling and portfolio optimization. Trading assets with leases attached is a common practice in the aircraft leasing industry, allowing lessors to manage age profiles and risk exposure. For WestJet, the transaction represents a “backend” change of lessor; the airline retains physical possession and operational control of the aircraft, merely redirecting lease payments to the new owner, Aergo Capital.
The Secondary Market for the MAX 8
The transfer of a Boeing 737 MAX 8 between two major lessors highlights the intense demand for this asset class in the secondary market. With new aircraft production facing documented delays across the industry, “on-lease” assets, aircraft that are already built, certified, and generating revenue, have become premium commodities.
While an eight-year-old airframe might typically be considered approaching mid-life, the 737 MAX 8 remains a current-generation asset offering approximately 14% better fuel efficiency than its predecessors. For lessors like Aergo Capital, acquiring such an asset avoids the long wait times associated with factory order books. For the industry at large, this trade signals that liquidity for the MAX platform remains robust, despite, or perhaps because of, supply chain constraints limiting the delivery of new metal.
Sources:
Aergo Capital Acquires WestJet-Leased Boeing 737 MAX 8 from Aircastle
Transaction Overview and Executive Commentary
Strategic Context and WestJet Partnership
Deepening Ties with WestJet
Asset Liquidity and Market Demand
AirPro News Analysis
Photo Credit: Aergo Capital
Aircraft Orders & Deliveries
Qanot Sharq Receives First Airbus A321XLR in Central Asia
Qanot Sharq becomes Central Asia’s first operator of the Airbus A321XLR, expanding long-haul routes to North America and Asia from Tashkent.
This article is based on an official press release from Airbus and Qanot Sharq.
On December 19, 2025, Qanot Sharq, Uzbekistan’s first private airline, officially took delivery of its first Airbus A321XLR (Extra Long Range) aircraft. The delivery, facilitated through a lease agreement with Air Lease Corporation (ALC), marks a historic milestone for aviation in the region, as Qanot Sharq becomes the launch operator of the A321XLR in Central Asia and the Commonwealth of Independent States (CIS).
This aircraft is the first of four confirmed A321XLR units destined for the carrier. According to the official announcement, the airline intends to utilize the aircraft’s extended range to open new long-haul markets that were previously inaccessible to single-aisle jets, including planned services to North America and East Asia.
The newly delivered A321XLR is powered by CFM International LEAP-1A engines and features a two-class layout designed to balance capacity with passenger comfort on longer sectors. The aircraft accommodates a total of 190 passengers.
In addition to the seating configuration, the aircraft is fitted with Airbus’ “Airspace” cabin interior. Key features include customizable LED lighting, lower cabin altitude settings to reduce jet lag, and XL overhead bins that provide 60% more storage capacity compared to previous generation aircraft.
Nosir Abdugafarov, the owner of Qanot Sharq, emphasized the strategic importance of the delivery in a statement regarding the fleet expansion.
“The A321XLR’s exceptional range and efficiency will allow us to offer greater comfort and convenience while maintaining highly competitive operating economics.”
, Nosir Abdugafarov, Owner of Qanot Sharq
The introduction of the A321XLR allows Qanot Sharq to deploy a narrowbody aircraft on routes typically reserved for widebody jets. With a range of up to 4,700 nautical miles (8,700 km), the airline plans to connect Tashkent with destinations in Europe, Asia, and North America.
According to the airline’s strategic roadmap, the new fleet will support route expansion to Sanya (China) and Busan (South Korea). Furthermore, the airline has explicitly outlined plans to serve New York (JFK) via Budapest. While the A321XLR has impressive range, the distance between Tashkent and New York (approximately 5,500 nm) necessitates a technical stop. Budapest will serve as this intermediate point, potentially allowing the airline to tap into passenger demand between Central Europe and the United States, subject to regulatory approvals. AJ Abedin, Senior Vice President of Marketing at Air Lease Corporation, noted the geographical advantages available to the airline.
“Qanot Sharq is uniquely positioned to unlock the full potential of the A321XLR due to its strategic location in Uzbekistan, bridging Europe and Asia.”
, AJ Abedin, SVP Marketing, Air Lease Corporation
The delivery of the A321XLR signals a distinct shift in the competitive landscape of Uzbek aviation. Until now, long-haul flights from Tashkent,specifically to the United States,have been the exclusive domain of the state-owned flag carrier, Uzbekistan Airways, which utilizes Boeing 787 Dreamliners for non-stop service.
By adopting the A321XLR, Qanot Sharq appears to be pursuing a “long-haul low-cost” hybrid model. The A321XLR burns approximately 30% less fuel per seat than previous-generation aircraft, allowing the private carrier to operate long routes with significantly lower trip costs than its state-owned competitor. While the one-stop service via Budapest will result in a longer total travel time compared to Uzbekistan Airways’ direct flights, the lower operating costs could allow Qanot Sharq to offer more competitive fares, appealing to price-sensitive travelers and labor migrants.
Furthermore, the choice of Budapest as a stopover is strategic. If Qanot Sharq secures “Fifth Freedom” rights,which are currently a subject of regulatory negotiation,it could monetize the empty seats on the Budapest-New York sector, effectively competing in the transatlantic market while serving its primary base in Central Asia.
Sources: Airbus Press Release, Air Lease Corporation
Qanot Sharq Becomes First Central Asian Operator of Airbus A321XLR
Aircraft Configuration and Capabilities
Strategic Network Expansion
AirPro News Analysis: The Long-Haul Low-Cost Shift
Sources
Photo Credit: Airbus
Aircraft Orders & Deliveries
China Airlines Orders Five Additional Airbus A350-1000 Aircraft
China Airlines adds five Airbus A350-1000s to its fleet, enhancing capacity on transpacific and European routes with deliveries from 2026.
This article is based on an official press release from Airbus and additional industry data regarding fleet modernization.
China Airlines (CAL) has officially signed a firm orders for five additional Airbus A350-1000 aircraft, signaling a continued commitment to modernizing its long-haul operations. Announced on December 18, 2025, this agreement increases the Taiwan-based carrier’s total backlog for the A350-1000 variant to 15 aircraft. The move is part of a broader strategy to replace aging widebody jets and enhance capacity on high-density routes connecting Asia with North America and Europe.
According to the official statement released by Airbus, these new aircraft will join the airline’s existing fleet of 15 A350-900s. The decision to expand the A350-1000 order book underscores the operator’s reliance on the A350 family’s commonality, which allows for streamlined pilot training and maintenance procedures. Deliveries for the newly ordered jets are scheduled to commence in 2026 and continue through 2029.
The deal also highlights the competitive landscape of widebody aviation in the Asia-Pacific region. By securing these additional units, China Airlines aims to deploy its flagship product on slot-constrained routes where maximizing passenger count per movement is critical. The aircraft will be powered by Rolls-Royce Trent XWB-97 engines, known for their efficiency in long-range operations.
China Airlines plans to utilize the A350-1000 primarily for its most prestigious long-haul markets. Industry reports indicate that the aircraft will be deployed on key transpacific routes to New York (JFK), Los Angeles (LAX), Seattle (SEA), and Ontario, California (ONT), as well as European hubs like London Heathrow (LHR). The A350-1000 offers significantly higher capacity than the -900 variant, making it a strategic asset for airports with limited landing slots.
Coinciding with these deliveries, the airline is preparing to unveil a major upgrade to its onboard product. Sources familiar with the carrier’s fleet planning suggest a new cabin design will debut in 2027. This retrofit is expected to feature business class suites with closing doors, 4K entertainment screens, and wireless charging capabilities, aiming to rival premium competitors such as Singapore Airlines and Cathay Pacific.
The interior aesthetic will likely continue the carrier’s “Oriental aesthetics” theme, utilizing persimmon wood-grain finishes and mood lighting to evoke a boutique hotel atmosphere. While the current A350-900 seats 306 passengers, the larger -1000 variant is projected to accommodate between 350 and 400 passengers, providing a substantial boost in premium economy and economy seat inventory.
Both China Airlines and Airbus executives emphasized the efficiency and passenger comfort benefits of the A350-1000. In the official press release, Kao Shing-Hwang, Chairman of China Airlines, noted the alignment of this order with the carrier’s sustainability and service goals. “Expanding our A350-1000 fleet marks another important step in our long-term growth strategy. The A350’s exceptional efficiency and passenger comfort align with our goals to modernize our fleet, enhance long-haul competitiveness, and deliver an elevated travel experience to our customers.”
Kao Shing-Hwang, Chairman of China Airlines
Benoit de Saint-Exupéry, Airbus EVP Sales, added that the repeat order validates the aircraft’s performance in the heavy widebody segment.
“This follow-on order is a strong vote of confidence in the A350-1000 as the right aircraft for China Airlines’ future network ambitions. Its next-generation efficiency, range, and cabin comfort brings even greater value to the airline and its passengers.”
Benoit de Saint-Exupéry, Airbus Sales
This order reinforces a “split fleet” procurement strategy that has become increasingly common among major global carriers. While China Airlines has committed to the Boeing 777X for specific high-volume trunk routes and the 787 Dreamliner for regional replacement, the expansion of the A350-1000 fleet secures Airbus’s position as the backbone of the airline’s medium-to-large widebody operations.
From a financial perspective, based on 2025 list prices of approximately $366.5 million per unit, the deal holds a theoretical face value of roughly $1.83 billion, though actual acquisition costs are typically 40-50% lower after standard industry discounts. Environmentally, the shift is significant; the A350-1000 offers a 25% reduction in fuel burn compared to the previous generation aircraft it replaces, such as the Boeing 747-400 freighters and older passenger jets. This efficiency gain is a critical component of the airline’s roadmap to achieving Net Zero carbon emissions by 2050.
China Airlines Bolsters Long-Haul Capacity with Additional A350-1000 Order
Strategic Deployment and Cabin Innovation
Next-Generation Passenger Experience
Executive Commentary
AirPro News Analysis
Sources
Photo Credit: Airbus
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