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
GE Aerospace Advances XA102 Engine Assembly for USAF NGAP
GE Aerospace moves toward physical assembly of its XA102 adaptive cycle engine for the U.S. Air Force NGAP program.

GE Aerospace is advancing toward the physical assembly of its first XA102 adaptive cycle engine test asset for the U.S. Air Force (USAF) Next Generation Adaptive Propulsion (NGAP) program. The manufacturers is currently procuring hardware and conducting subcomponent testing with its supply chain to support the prototype build.
In a press release issued on September 14, 2026, the company confirmed the progress at its Edison Works facility in Cincinnati, Ohio. The XA102 program introduces a shift in defense manufacturing processes, as it represents the first engine built entirely using model-based definition (MBD). This approach replaces traditional two-dimensional engineering drawings with a machine-readable digital format that spans from initial design through final assembly.
Transitioning from design to physical assembly
The move toward physical assembly follows the successful completion of the Assembly Readiness Review (ARR) for the XA102 engine in May 2026. The ARR milestone validated that the engine design, manufacturing processes, and supply chain were mature enough to support prototype construction.
Jorge Perez, General Manager of Edison Works Advanced Combat Engines at GE Aerospace, outlined the current phase of the program.
“Our team is working with suppliers to procure hardware and test subcomponents as we prepare for assembly of the first XA102 test asset,” Perez stated.
Adaptive cycle technology and the NGAP competition
The USAF initiated the NGAP program to develop propulsion systems capable of powering future sixth-generation combat aircraft. Adaptive cycle engines like the XA102 are designed to reconfigure their internal airflow during flight. This capability allows the engine to switch between high-thrust modes optimized for combat maneuvers and high-efficiency modes designed for cruising, providing greater range and improved thermal management compared to conventional turbofan engines.
GE Aerospace is developing the XA102 using thermal management, fuel efficiency, and advanced design methods established during its earlier XA100 adaptive cycle engine program.
“With our learnings from the XA100 program as a foundation, we are well positioned to advance adaptive cycle engine technology and support the Air-Forces‘s vision for next-generation propulsion,” Perez noted.
The NGAP program remains a competitive acquisition effort. Pratt & Whitney also completed the ARR for its respective NGAP candidate, the XA103, in May 2026.
AirPro News analysis
We view the transition to a fully MBD architecture as a critical evolution for military engine procurement. By eliminating two-dimensional drawings, GE Aerospace can theoretically reduce translation errors between engineering and manufacturing, potentially accelerating the assembly timeline for the XA102 test asset.
While various open-source platforms and third-party aggregators have linked the NGAP engines to a specific “Boeing F-47″ platform, official communications from both GE Aerospace and the USAF refer exclusively to “future combat aircraft” and the Next Generation Air Dominance (NGAD) family of systems. We note that the specific airframe designation remains unconfirmed by primary sources, and the propulsion development currently proceeds independent of a finalized, public airframe selection.
Sources: GE Aerospace
Photo Credit: GE Aerospace
Aircraft Orders & Deliveries
Drukair Selects CFM LEAP-1A Engines for A320neo Fleet Order
Drukair picks CFM LEAP-1A engines for five A320neo family aircraft, including two A321XLRs, with deliveries starting in 2030.

Drukair has finalized the propulsion choice for its upcoming fleet expansion, selecting CFM International LEAP-1A engines to power five new Airbus A320neo family aircraft.
The engine selection, announced in a CFM International press release on September 14, 2026, supports an aircraft order originally outlined in a July 2024 Memorandum of Understanding. The Bhutanese national carrier will use the new equipment to expand its international network, with aircraft deliveries anticipated to begin in 2030.
Fleet Modernization and Expansion
The order consists of three Airbus A320neo and two Airbus A321XLR aircraft. Drukair currently operates a mixed narrowbody fleet that includes one LEAP-powered A320neo and three older Airbus A319ceo aircraft powered by CFM56 engines.
The airline has been a CFM customer since 2004, when it received its first A319ceo. The new LEAP-1A engines will provide commonality with the existing A320neo while supporting the longer-range capabilities of the A321XLR.
Drukair Chief Executive Officer Tandi Wangchuk noted that the efficiency and reliability of the LEAP-1A assets will support the carrier’s growth.
“The LEAP-1A assets in terms of efficiency and reliability will support Drukair’s next phase of growth across Asia while helping us strengthen connectivity and deliver greater value to our passengers,” Wangchuk said.
CFM International Production Milestones
The agreement reinforces CFM International’s position in the South Asian aviation market. CFM President and Chief Executive Officer Gaël Méheust stated the manufacturer remains committed to supporting the airline’s growth and ensuring a smooth integration of the new aircraft into the fleet.
According to the manufacturer, the LEAP engine program has reached a milestone of 10,000 global deliveries. The engine provides improved fuel efficiency and reduced emissions compared to the legacy CFM56 powerplants currently operating on Drukair’s A319ceo fleet.
AirPro News analysis
The selection of the LEAP-1A is a logical continuation of Drukair’s existing fleet strategy. By maintaining engine commonality with its single in-service A320neo, the airline avoids the maintenance and training overhead that would come from introducing a competing powerplant. We view the inclusion of the A321XLR as the more transformative element of this order. The aircraft’s extended range will allow the landlocked nation to bypass traditional regional hubs and establish direct links to more distant markets in Asia-Pacific or the Middle East once deliveries commence in 2030.
Sources: CFM International
Photo Credit: CFM International
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
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