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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.

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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

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Business Aviation

US-Bangla Airlines Orders 21 Boeing 737s in $1.5B Deal

US-Bangla Airlines finalizes a $1.5B lease for 21 Boeing 737 aircraft, with deliveries scheduled by end of 2027.

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US-Bangla Airlines has finalized a $1.5 billion leasing agreement to acquire 21 Boeing 737 family aircraft, marking a major capacity expansion for the private aviation sector in Bangladesh ahead of the opening of Dhaka’s new airport terminal.

The carrier officially announced the fleet acquisition on July 29, 2026, during a dedicated event titled “Beyond with Boeing” at the Sheraton Hotel in Dhaka. All 21 aircraft are scheduled for delivery by the end of 2027. The expansion supports the airline’s broader strategy to launch a low-cost subsidiary and expand its international network across Asia and the Middle East.

Fleet expansion and strategic growth

The order consists of 15 Boeing 737-8 and six Boeing 737-800 aircraft. The acquisition represents one of the largest private aviation investments in the country’s history. US-Bangla Group Managing Director Mohammad Abdullah Al Mamun outlined the strategic intent behind the order during the event.

“This investment represents much more than fleet expansion. It reflects our long-term vision to transform US-Bangla from an airline into a fully integrated global aviation group,” Mamun said.

He noted the company is investing across multiple sectors, including technology, cargo, catering, and infrastructure. The airline recently disclosed plans to launch a separate low-cost carrier to serve different passenger segments, targeting 30 overseas destinations by 2027.

Infrastructure and workforce investments

Alongside the airframes, the agreement includes substantial workforce development initiatives. US-Bangla plans to send approximately 200 Bangladeshi pilots to the United States for advanced training and will train 100 certified aircraft maintenance engineers.

US Ambassador to Bangladesh Brent T. Christensen highlighted this aspect during the ceremony, calling the training program an investment in the next generation of aviation professionals. Christensen also noted the event highlighted the expanding economic relationship between the US and Bangladesh. Boeing Vice President of Sales and Marketing for Eurasia, India, and South Asia Paul Righi was also in attendance to represent the manufacturer.

National aviation capacity

The US-Bangla expansion coincides with broader infrastructure upgrades in Bangladesh. State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat announced the government is formulating an Aviation Master Plan and establishing a pilot training academy in Bogura.

Millat confirmed the upcoming third terminal at Hazrat Shahjalal International Airport will significantly boost the region’s throughput. “Once the Third Terminal becomes operational, we will be able to handle 24 million passengers annually,” Millat stated.

National carrier Biman Bangladesh Airlines is concurrently expanding its fleet with an agreement for 14 new Boeing aircraft, signaling a nationwide push to capture regional market share.

AirPro News analysis

We note a slight discrepancy in the reported valuation of the US-Bangla fleet expansion. While the official July 29 announcement valued the leasing program at approximately $1.5 billion, earlier filings submitted to the Bangladesh Investment Development Authority (BIDA) in mid-July cited the investment at approximately $1.11 billion. Regardless of the final capitalized value, the concurrent Boeing orders from both US-Bangla and Biman Bangladesh Airlines signal a highly competitive phase for the country’s aviation sector. The influx of 35 new Boeing narrowbodies between the two carriers over the next 18 months will require rapid scaling of domestic maintenance and training infrastructure to support the projected capacity growth.

Sources: US-Bangla Airlines

Photo Credit: US-Bangla Airlines

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Aircraft Orders & Deliveries

Airbus H1 2026 Results: Revenue Up 12% to 33.2 Billion

Airbus reports €33.2 billion in H1 2026 revenue, 351 commercial deliveries, and a backlog of 9,222 aircraft.

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Airbus SE reported a 12 percent year-on-year revenue increase to €33.2 billion for the first half of 2026, driven by a 15 percent surge in commercial aircraft deliveries as supply chain constraints begin to ease. In a press release issued on July 29, 2026, the European aerospace manufacturer confirmed it delivered 351 commercial aircraft during the six months ended June 30, 2026, keeping the company on track to meet its unchanged full-year guidance of approximately 870 deliveries.

The financial results highlight a period of stabilization and growth across the manufacturer’s primary divisions. Airbus reported an adjusted Earnings Before Interest and Taxes (EBIT) of €2.7 billion and an Earnings Per Share (EPS) of €2.84 for the half-year period. Free cash flow before customer financing was recorded at €-1.2 billion.

Commercial aircraft production and order backlog

The delivery of 351 commercial aircraft in the first half of 2026 represents a notable increase from the 306 aircraft delivered during the same period in 2025. This production ramp-up was matched by strong sales performance. Airbus recorded 886 gross commercial aircraft orders between January and June 2026, up from 494 in the first half of 2025. After accounting for cancellations, net commercial orders reached 821, more than double the 402 net orders logged in the prior-year period.

By the end of June 2026, the Airbus commercial aircraft order backlog stood at 9,222 airframes.

“Our good H1 results mainly reflect the higher level of commercial aircraft deliveries and strong performance in Defence and Space, against the backdrop of a complex and fast-changing environment,” said Guillaume Faury, Chief Executive Officer of Airbus SE.

Helicopters and Defence divisions show growth

Beyond the commercial aircraft sector, Airbus Helicopters and Airbus Defence and Space both reported year-on-year growth. Airbus Helicopters delivered 144 units in the first half of 2026, up from 138 in 2025, generating €3.7 billion in revenue. The division secured 215 net helicopter orders, increasing from 171 in the previous year, and ended the reporting period with a backlog of 1,108 helicopters.

Airbus Defence and Space saw revenues increase by 9 percent to €6.3 billion. The division’s order intake experienced a substantial increase, reaching €9.3 billion in the first half of 2026 compared to €5.1 billion during the same timeframe in 2025.

Supply chain stabilization supports delivery targets

The ability to increase commercial deliveries by 15 percent is closely tied to improvements in the aerospace supply chain. Speaking to CNBC at the Farnborough Airshow on July 21, 2026, Faury noted that engine supplies have stabilized, removing a primary constraint that had previously hindered production rates.

According to reporting by Reuters, Faury emphasized that the delivery volume achieved in the first half of 2026 is highly consistent with the company’s planned ramp-up trajectory for the year. The manufacturer reiterated its commitment to steady execution across all business units to meet growing civil and military demand.

AirPro News analysis

The confirmation of 351 commercial deliveries in the first half of 2026 provides a solid foundation for Airbus to reach its 870-aircraft target by year-end, though the traditional fourth-quarter delivery push will still be required. The stabilization of engine supplies is the most critical operational development here. For the past several years, propulsion system availability has been the primary bottleneck dictating the pace of final assembly lines. With that constraint easing, Airbus can more reliably forecast its output.

The reported negative free cash flow of €-1.2 billion is a standard byproduct of an aggressive production ramp-up. Building 15 percent more aircraft requires significant upfront investment in inventory, parts, and working capital before the final delivery payments are realized. With a backlog exceeding 9,200 commercial aircraft, we expect Airbus to maintain this high-capital expenditure posture as it pushes toward unprecedented monthly production rates over the next three years.

Sources: Airbus SE

Photo Credit: Airbus

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Aircraft Orders & Deliveries

Daher Aircraft Delivers 400th Kodiak Turboprop in 2026

Daher Aircraft delivered its 400th Kodiak turboprop on July 29, 2026, marking a production milestone since its 2019 acquisition.

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Daher Aircraft delivered its 400th Kodiak turboprop on July 29, 2026, handing over a Kodiak 100 Series III to an undisclosed Canadian customer from its production facility in Sandpoint, Idaho. The milestone highlights the accelerated production and commercial expansion of the multi-role aircraft family since Daher Aircraft acquired the program in 2019.

In a press release issued to mark the occasion, the aerospace manufacturer noted that more than half of the active global Kodiak fleet has been sold under the Daher brand. The global fleet has accumulated over 520,000 flight hours since the original aircraft entered service in 2008.

Production milestones and fleet growth

The 400th aircraft is a Kodiak 100 Series III, a variant introduced by Daher Aircraft in 2021 that features the Garmin G1000 NXi integrated flight deck and is powered by a Pratt & Whitney Canada PT6A-series turboprop engine. Daher Aircraft CEO Nicolas Chabbert stated that the delivery represents a major achievement for an aircraft that has expanded well beyond its initial humanitarian mission profile.

“From the beginning, safety has been fundamental to the Kodiak’s design with its superior handling characteristics, complemented by its outstanding short-field performance, excellent operating efficiency and mission adaptability,” Chabbert said. “Our success with these efforts is reflected in the marketplace. Today, more than half of all Kodiak aircraft in service have been sold under the Daher brand.”

Following the acquisition of the program, Daher Aircraft expanded the lineup in 2022 with the introduction of the larger and faster Kodiak 900. The manufacturer reports strong ongoing demand across North America, which remains its largest market, followed by the Asia-Pacific, Europe, South America, and Africa regions.

Mission versatility and customer support

The Kodiak family was originally designed for rugged, off-airport operations. According to the manufacturer, approximately 15 percent of in-service Kodiak 100 aircraft are equipped with floats for water operations. Daher Aircraft has also been expanding its in-house integration capabilities to meet rising demand from government, law enforcement, and conservation agencies requiring specialized mission equipment.

The expanding Kodiak fleet is supported alongside the company’s other turboprop products. The Daher Care customer service organization currently supports more than 1,300 TBM aircraft, including the TBM 980 and TBM 960, as well as 3,000 legacy airplanes built by Daher Aircraft’s predecessor companies.

AirPro News analysis

The delivery of the 400th Kodiak underscores the success of Daher Aircraft’s 2019 acquisition strategy. By integrating the rugged utility turboprop into a portfolio previously dominated by the high-speed TBM series, Daher effectively captured a distinct market segment. We view the rapid sales pace under Daher ownership as a direct result of applying the company’s established global sales and support network to a proven, niche airframe. The introduction of the Kodiak 100 Series III and the Kodiak 900 demonstrates a commitment to iterative development that should sustain the production line in Sandpoint for the foreseeable future.

Sources: Daher Aircraft

Photo Credit: Daher Aircraft

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