Aviation Capital Group Reports Record $1.3B Revenue in 2025
Aviation Capital Group achieved $1.3 billion revenue in 2025, boosted by insurance recoveries and fleet expansion with new aircraft orders.

This article is based on an official press release from Aviation Capital Group.
Aviation Capital Group Reports Record $1.3 Billion Revenue for 2025
On February 25, 2026, Aviation Capital Group (ACG) announced its financial results for the fiscal year ended December 31, 2025, marking a historic year for the aircraft lessor. According to the company’s official statement, ACG achieved its highest-ever annual revenue of $1.3 billion, driven by strong global demand for aircraft and significant recoveries related to insurance claims.
The company reported a total pre-tax net income of $751 million. ACG disclosed that this figure was substantially bolstered by a $551 million net benefit from insurance settlements regarding aircraft stranded in Russia following the 2022 invasion of Ukraine. Excluding these insurance proceeds, the lessor’s core pre-tax net income stood at $200 million, representing a 15% year-over-year increase that reflects the underlying strength of the leasing market.
Financial Highlights and Liquidity
Beyond the headline revenue figures, ACG’s financial report detailed robust growth across several key metrics. Operating cash flow rose by 20% year-over-year to $657 million. The company also strengthened its balance sheet, reporting total assets of $13.7 billion, an increase of $1.6 billion from 2024.
In terms of financial stability, ACG highlighted a liquidity position of $5.1 billion. The lessor also improved its leverage profile, bringing its net debt-to-equity ratio down to 2.0x from 2.1x the previous year. These metrics underscore the support of its parent company, Tokyo Century Corporation, and the lessor’s ability to navigate a capital-intensive market environment.
In the press release, Thomas Baker, CEO and President of Aviation Capital Group, commented on the results:
“2025 marked a record year for ACG… Our strong performance resulted in a 20% increase in operating cash flow… driven by robust operating lease revenue, active portfolio management and sizeable settlements on insurance claims related to our Russia exposure.”
Portfolio Strategy and Fleet Modernization
ACG’s report outlined an aggressive strategy of fleet renewal and expansion throughout 2025. As of December 31, 2025, the company’s portfolio comprised 446 aircraft, including owned, managed, and committed assets. The lessor invested $3.2 billion in aircraft purchases during the year, adding 56 aircraft to its fleet. These additions were primarily focused on new-technology narrowbody aircraft, such as the Airbus A320neo, A220, and Boeing 737 MAX families.
Simultaneously, ACG continued to divest older assets to maintain a young and efficient fleet. The company sold 14 aircraft, three engines, and one airframe in 2025, generating a net gain of $57 million in the fourth quarter alone. As a result of these moves, the weighted average age of the fleet was reduced to 5.4 years, while the average remaining lease term increased to 7.1 years.
CEO Thomas Baker emphasized the forward-looking nature of these moves:
“With aircraft demand remaining strong, continuing to outpace supply… we remain focused on building a strong pipeline of assets and continuing to grow the business profitably and sustainably.”
Strategic Developments in Early 2026
Following the close of the 2025 fiscal year, ACG executed significant strategic transactions in the first quarter of 2026 to secure its long-term growth pipeline. In January 2026, the lessor finalized a major order for 50 Boeing 737 MAX jets, split evenly between 25 MAX 8 and 25 MAX 10 variants. Deliveries for this order are scheduled for the 2032–2033 timeframe. Notably, this agreement positions ACG as the largest lessor customer for the 737 MAX 10.
Additionally, in February 2026, ACG signed definitive agreements to acquire a 24-aircraft portfolio. While the official release focuses on the acquisition itself, industry reports suggest this portfolio was acquired from lessor Avolon, further boosting ACG’s immediate scale.
AirPro News Analysis
The financial results presented by ACG reflect broader trends currently defining the aviation leasing sector. The $551 million recovery related to Russia aligns with similar settlements achieved by major competitors like AerCap and SMBC throughout 2024 and 2025. These settlements have provided lessors with significant one-time capital injections, distorting headline net income figures while simultaneously resolving a major lingering uncertainty from the geopolitical fallout of 2022.
Furthermore, the 15% rise in core pre-tax income validates the “supply constraint” thesis dominating the market. With OEMs facing severe delivery delays, the value of existing “metal” has surged. Lessors with available inventory are benefiting from higher lease rates and strong secondary market values, as evidenced by ACG’s $57 million gain on divestments in Q4 alone.
Sources
Photo Credit: Aviation Capital Group – Montage
Defense & Military
Airbus Delivers First NH90 Standard 2 to France
Airbus Helicopters delivered the first NH90 Standard 2 to France on July 30, 2026, launching an 18-aircraft order for special forces.

Airbus Helicopters has delivered the first NH90 Standard 2 tactical transport helicopter to the French Armament General Directorate (DGA), initiating a phased rollout of 18 specialized aircraft designed for special operations.
The handover took place on July 30, 2026, at the manufacturer’s facility in Marignane, France. According to a press release from Airbus, the aircraft will be operated by the French Army Light Aviation (ALAT) 4th Special Forces Helicopter Regiment based in Pau. The Standard 2 configuration builds upon the existing NH90 Tactical Transport Helicopter (TTH) platform, introducing advanced digitalization and modular communication systems intended to support complex missions in degraded environments.
Technical upgrades and operational capabilities
The NH90 Standard 2 incorporates several hardware and software modifications tailored to the requirements of special forces operators. Key integrations include the Safran Euroflir 410 D electro-optical system and a new digital map generator, which together enhance situational awareness for the flight crew. The airframe features enlarged rear sliding windows designed to accommodate self-protection guns, alongside provisions for a third crew member station.
With the addition of external fuel tanks, the variant achieves an operational range exceeding 1,000 kilometers. The aircraft architecture also emphasizes rapid integration of future technologies.
Integrating a new communications system is a complex and costly process. The NH90 Standard 2 comes pre-equipped with antennas and cabling to accommodate any type of new radio installation. Voice, data, satellite transmission, everything can be installed quickly and easily in the helicopter, which also has the capacity to control drones. It’s revolutionary.
The quote, provided by an unnamed officer from the 4th Special Forces Helicopter Regiment in the Airbus announcement, highlights the platform’s shift toward network-centric operations.
Program timeline and international adoption
The development of the Standard 2 variant began following a contract issued in October 2020 by the NATO Helicopter Management Agency (NAHEMA). Flight testing for the initial prototype commenced in June 2024, leading to the start of production in early 2025. Airbus expects to complete deliveries of the 18 helicopters ordered by France by mid-2029.
The configuration has already secured international interest. In December 2025, Spain joined the program with an order for 31 NH90s in a similar standard.
We are honoured to deliver this NH90 Standard 2 to the French armed forces. This new standard builds upon the proven capabilities of the NH90 TTH with new breakthrough features designed specifically for special forces. More than ever, special forces operators will be able to execute their difficult missions in the toughest environments.
Matthieu Louvot, CEO of Airbus Helicopters, noted that Spain’s participation in developing features for crew situational awareness indicates the new standard is positioned to become a benchmark for special forces globally.
AirPro News analysis
The delivery of the NH90 Standard 2 highlights a growing requirement among NATO members for rotorcraft that function as integrated command and control nodes rather than simple troop transports. By pre-equipping the airframe with modular cabling and antennas, Airbus and NAHEMA are addressing a historical pain point in military aviation: the prohibitive cost and downtime associated with retrofitting communication suites. The explicit inclusion of drone control capabilities within the helicopter’s systems reflects a broader tactical shift, where manned rotorcraft will increasingly operate in tandem with unmanned aerial systems to extend sensor reach and reduce risk in contested airspace.
Sources: Airbus
Photo Credit: Airbus
Commercial Aviation
KLM Cityhopper Marks 60 Years as KLM Regional Feeder
KLM Cityhopper celebrates 60 years, growing to 58 aircraft, 80+ destinations, and 11 million annual passengers from Amsterdam Schiphol.

KLM Cityhopper marked its 60th anniversary on September 11, 2026, celebrating its evolution from a domestic operator with two leased aircraft into a 58-aircraft regional carrier that feeds KLM Royal Dutch Airlines’ intercontinental network.
In a press release issued to mark the milestone, the airline detailed its growth to serving more than 80 destinations with over 350 daily flights. Operating out of Amsterdam Airport Schiphol (AMS), the carrier now transports approximately 11 million passengers annually and serves as a testing ground for broader KLM group innovations.
Historical evolution and fleet transition
The airline’s origins date back to 1966 with the founding of Nederlandse Luchtvaart Maatschappij (NLM). Initially established to provide fast connections between Dutch regions, NLM began operations using two leased Fokker aircraft. The “Cityhopper” branding was introduced a decade later in 1976.
Consolidation and modernization shaped the carrier’s subsequent decades. NLM merged with NetherLines in 1991. By 2008, the airline initiated a major fleet transition, shifting away from its historical reliance on Fokker aircraft to a modern fleet of Embraer jets, which currently includes the Embraer E195-E2.
“Sixty years ago, KLM Cityhopper began as a small regional airline. Today, we are an essential part of KLM’s network and play a key role in connecting Europe with the world,” said Maarten Koopmans, Managing Director of KLM Cityhopper. “With that same entrepreneurial and innovative spirit, we will continue building the future of regional aviation.”
Network expansion and technological integration
The regional carrier has continued to expand its European footprint in recent seasons. The airline has added routes to destinations including Biarritz, Exeter, Dubrovnik, Ljubljana, Cork, Jersey, Santiago de Compostela, and Oviedo. This network expansion supports the primary mission of funneling European passenger traffic into the KLM long-haul hub at AMS.
Beyond passenger transport, KLM Cityhopper functions as an operational laboratory for the broader KLM group. The airline is participating in “The Aviation Challenge” for the fourth consecutive year, testing solutions that incorporate artificial intelligence, sustainable aviation fuels, weight reduction, and the electrification of ground operations.
Specific technological implementations include virtual reality training programs for pilots. The carrier is also utilizing the OptiClimb flight optimization application, which is designed to reduce fuel consumption and carbon dioxide emissions during the climb phase of flight.
AirPro News analysis
We view KLM Cityhopper’s trajectory as emblematic of the broader European aviation market’s reliance on robust regional feeder networks. The transition from Fokker turboprops and early jets to the Embraer E-Jet family, particularly the Embraer E195-E2, highlights a continuous industry push toward lower per-seat mile costs and reduced emissions profiles. By utilizing the regional subsidiary to test operational innovations like OptiClimb and virtual reality training, KLM effectively mitigates risk, allowing the mainline carrier to adopt proven technologies after they have been validated in a high-frequency, short-haul environment.
Sources: KLM Newsroom
Photo Credit: KLM
Aircraft Orders & Deliveries
Airbus A350F Clears Ground Tests Before First Flight
Airbus completes Virtual First Flight program for the A350 Freighter ahead of maiden flight targeted for late September 2026.

Airbus has completed the final simulation milestones for the A350 Freighter (A350F) and is preparing the aircraft for its maiden flight from Toulouse, France, targeted for late September 2026.
In a press release issued on September 14, 2026, the manufacturer detailed the completion of its “Virtual First Flight” (VFF) program and ground vibration testing. The milestone marks the final phase of ground preparations before the new widebody freighter enters a 400-hour flight test campaign aimed at securing certification in 2027. The A350F is designed to challenge Boeing in the heavy cargo market, featuring a maximum payload capacity of 111 tonnes and a range of 4,700 nautical miles.
Aerodynamic modeling and the Virtual First Flight
The A350F utilizes a unique fuselage configuration that requires extensive aerodynamic validation. Laurent Bussiere, Lead Flight Test Engineer for the A350F program, noted that the aircraft combines the forward fuselage length of the Airbus A350-900 with the rear fuselage length and wings of the Airbus A350-1000.
“It’s not an A350-1000 and it’s not an A350-900, but rather it’s between both. So we need to look at the behavior of the whole system with this unique model,” Bussiere said.
To prepare the five-person flight test crew, Airbus conducted the VFF program in early September 2026. The program consisted of 13 simulation sessions, each lasting approximately five hours. Bussiere stated that the simulation setup is 90% representative of the physical aircraft. The remaining 10% of the aerodynamic characteristics remain an unverified model. Because of this variable, the initial flight will be executed in “Direct Law”, requiring manual control by the flight crew until the aerodynamic model is validated in the air.
Flight test campaign and EASA certification
The global certification campaign is scheduled to last nine months and encompass 400 flight-hours. Airbus will utilize two test aircraft for the program. The first aircraft, designated MSN700, features a “flying parcel” test livery and will focus on aerodynamic performance, handling, and autopilot systems. The second aircraft, MSN701, is dedicated to system-related testing, including fire and smoke detection as well as hot and cold weather campaigns.
The European Union Aviation Safety Agency (EASA) is actively involved in the flight test plan. EASA pilots and flight test engineers will participate as onboard witnesses during performance flights ahead of the formal certification phase planned for 2027.
Airbus is also prioritizing ground operations during the test phase to ensure the aircraft is ready for commercial service.
“In terms of cargo operation, which is the A350F’s entire raison d’être, we are focusing on maturity right from the start. Our target is to be able to load and unload various representative containers and payloads every day after flight,” Bussiere said.
Order book and market entry
Airbus targets the first commercial delivery of the A350F for the second half of 2027. The manufacturer states the freighter will deliver a 40% reduction in fuel consumption and carbon emissions compared to previous generation aircraft with similar payload and range capabilities.
According to reporting by Cargo Facts, an undisclosed customer placed a firm order for eight A350Fs on August 31, 2026. This transaction brought the total firm order book for the type to 115 aircraft ahead of the maiden flight.
AirPro News analysis
We note that the nine-month flight test campaign outlined by Airbus represents an aggressive schedule for a widebody derivative with significant structural modifications. Flight test programs for aircraft of this size typically require 12 to 15 months to complete. While the extensive use of the Virtual First Flight program mitigates some developmental risk, any delays discovered during the 400-hour physical test campaign could push the targeted second-half 2027 entry into service into 2028.
Sources: Airbus
Photo Credit: Airbus
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