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Fitch Upgrades Phoenix Aviation Capital Rating to B Plus

Fitch Ratings upgrades Phoenix Aviation Capital’s corporate rating to B+ as fleet grows to 30 aircraft with $1.6B net book value and diversified portfolio.

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This article is based on an official press release from Phoenix Aviation Capital.

On May 11, 2026, Phoenix Aviation Capital announced a corporate rating upgrade from Fitch Ratings, moving from ‘B’ to ‘B+’ with a stable outlook. According to the official press release, the Dublin-based full-service aircraft lessor has experienced rapid growth and portfolio stabilization since its formation in April 2024. Managed by AIP Capital and operating as a portfolio company of funds advised by affiliates of BC Partners Advisors L.P., Phoenix has quickly established a significant footprint in the global aviation leasing market.

The rating upgrade reflects the company’s successful execution of its business strategy, which centers on acquiring in-demand, next-generation aircraft. Over the past two years, Phoenix has expanded its fleet to 30 aircraft, reaching a net book value (NBV) of $1.6 billion as of March 31, 2026. This marks a substantial increase from the 17 aircraft the company held just one year prior.

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Rapid Fleet Expansion and Financial Milestones

According to the company’s announcements and supplementary industry data, Phoenix has raised over $2.5 billion in debt capital across various loan facilities and capital markets issuances to fund its expansion. Notable transactions include an inaugural $592 million Term Loan B offering in October 2025, which was later upsized by $42 million in March 2026, and an inaugural $600 million unsecured note issuance.

Alongside the corporate rating upgrade, Fitch also upgraded Phoenix’s senior unsecured notes to ‘B+’ from ‘B’ with a recovery rating of ‘RR4’. Additionally, the company’s secured Term Loan B was upgraded to ‘BB’ from ‘BB-‘ with a recovery rating of ‘RR2’.

Diversifying the Lessee Portfolio

A key driver behind the rating revision is the lessor’s improved portfolio diversification. Industry reports indicate that Phoenix has successfully mitigated its single-lessee concentration risk as it has scaled. The company’s single largest lessee now accounts for 15 percent of its net book value, a notable decrease from 29 percent just one year ago. Furthermore, Phoenix has broadened its geographic reach, expanding its customer base from seven airlines in six countries to 13 airlines across 10 countries.

Strategic Focus on Next-Generation Aircraft

Phoenix Aviation Capital maintains a strict focus on financing modern, fuel-efficient aircraft, aligning with global airlines’ push to modernize fleets, improve fuel economics, and meet sustainability targets. Recent leasing activity highlights this strategy in action. In late April and early May 2026, Phoenix and AIP Capital executed long-term lease agreements for two Boeing 737 MAX 8 aircraft with 9 Air, a Chinese low-cost carrier controlled by Juneyao Airlines. The first of these aircraft was delivered on April 28, 2026.

“We are pleased to announce the rating revision Phoenix received from Fitch. This achievement reflects the strength and execution of the Phoenix strategy of growing and diversifying its portfolio of in-demand, next-generation aircraft, while also expanding its lending group and availability of debt capital.”

— Jared Ailstock, Managing Partner at AIP Capital, in the company’s press release.

AirPro News analysis

We view Phoenix Aviation Capital’s rapid scaling as a strong indicator of the current robust demand for next-generation aircraft in the commercial leasing sector. Reaching a 30-aircraft fleet and a $1.6 billion net book value within 24 months of formation requires substantial capital access and deep industry relationships. The institutional backing of AIP Capital, which manages approximately $7.5 billion in assets, alongside BC Partners, provides Phoenix with the necessary financial leverage to execute large-scale capital markets transactions. The Fitch upgrade validates this aggressive yet risk-managed growth strategy, particularly the deliberate reduction in lessee concentration and the expansion into high-demand Asian markets.

Frequently Asked Questions

What is Phoenix Aviation Capital?

Formed in April 2024, Phoenix Aviation Capital is a Dublin-based full-service commercial aircraft lessor focused on financing modern, next-generation aircraft for global airlines. It is managed by AIP Capital.

Why did Fitch Ratings upgrade Phoenix Aviation Capital?

Fitch upgraded the company’s corporate rating to ‘B+’ based on its improving scale, strong execution of its business strategy, and enhanced portfolio diversification, including a significant reduction in single-lessee concentration risk.

How large is Phoenix Aviation Capital’s fleet?

As of March 31, 2026, the company’s fleet consists of 30 aircraft with a net book value of $1.6 billion.


Sources:

Photo Credit: Phoenix Aviation Capital

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Aircraft Orders & Deliveries

AerCap Leases Two Boeing 777-300ERSF to Turkish Airlines

AerCap finalizes lease of two Boeing 777-300ERSF freighters to Turkish Airlines, with deliveries scheduled for 2027.

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AerCap Leases Two Boeing 777-300ERSF to Turkish Airlines

AerCap Holdings N.V. has finalized lease agreements with Turkish Airlines for two Boeing 777-300ERSF converted freighters, with deliveries scheduled between March and September 2027.

Announced on October 29, 2026, the transaction expands the Turkish flag carrier’s dedicated cargo capacity while utilizing Etihad Engineering’s maintenance, repair, and overhaul (MRO) facility in Abu Dhabi for the passenger-to-freighter (P2F) modifications. In a press release detailing the agreement, the Dublin-based aviation lessor emphasized the strategic alignment between the aircraft’s capabilities and the airline’s expanding freight network.

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Expanding Turkish Airlines’ cargo operations

The agreement builds on an existing relationship between AerCap and Turkish Airlines, which operates a large international network requiring substantial dedicated cargo lift. The addition of the two widebody freighters is intended to support the carrier’s volume requirements on high-demand international routes.

Peter Anderson, Chief Commercial Officer at AerCap, stated that the aircraft will provide the airline with additional cargo capacity combined with the performance capabilities specific to the 777-300ERSF platform. Financial terms of the lease agreements, including the exact lease duration and the specific aircraft serial numbers, were not disclosed in the announcement.

The Big Twin conversion program

The Boeing 777-300ERSF, marketed as “The Big Twin,” is a P2F conversion program developed through a joint venture between AerCap and Israel Aerospace Industries (IAI). It represents the first program designed to convert the Boeing 777-300ER into a dedicated freighter configuration.

According to AerCap’s cargo division, the 777-300ERSF offers 25 percent more cargo volume than the factory-built Boeing 777-200LRF. This increased capacity positions the converted twin-engine aircraft as a cost-effective replacement for aging four-engine Boeing 747 freighters currently operating in the global fleet.

AerCap delivered the first 777-300ERSF to launch customer Kalitta Air in September 2025. Since that initial delivery, the lessor has handed over aircraft to Fly Meta and secured lease agreements with other major operators, including Ethiopian Airlines and China Southern Group.

Regional conversion strategy in Abu Dhabi

The physical conversion of the two aircraft destined for Turkish Airlines will be executed at the Etihad Engineering MRO hub in Abu Dhabi, United Arab Emirates. This facility serves as a dedicated regional conversion center for the 777-300ERSF program.

Anderson highlighted the strategic importance of the location, noting that the Abu Dhabi facility provides a regional platform capability that enables aircraft to be converted in the Middle East prior to delivery. This localized approach is designed to efficiently serve customers across the Europe, Middle East, and Africa (EMEA) market.

“The dedicated 777-300ERSF conversion facility at Etihad Engineering’s MRO hub in Abu Dhabi provides an important regional platform capability, enabling the aircraft to be converted in the Middle East ahead of delivery to Turkish Airlines,” Anderson said.

AerCap’s broader market position

The Turkish Airlines agreement follows a period of strong financial performance for AerCap. On October 28, 2026, the company reported its third-quarter financial results, citing record adjusted earnings per share and raising its full-year 2026 guidance amid high lease rates and sustained demand for aviation assets.

As of September 30, 2026, AerCap’s total portfolio included 1,537 owned and managed aircraft, alongside approximately 1,300 engines and over 300 helicopters. The company’s dedicated cargo division manages a fleet of approximately 110 owned, managed, and on-order freighters, having completed more than 160 passenger-to-freighter conversions to date.

AirPro News analysis

We view the placement of 777-300ERSF aircraft with a major network carrier like Turkish Airlines as a strong validation of the Big Twin program’s economic proposition. As operators look to phase out older Boeing 747 freighters, the 25 percent volume advantage over the 777-200LRF makes the converted 300ER an attractive middle ground between factory-built twin-engine freighters and legacy four-engine platforms. Utilizing the Etihad Engineering facility in Abu Dhabi for a European customer also demonstrates the logistical efficiency of AerCap’s decentralized conversion strategy, reducing ferry times and regional friction for EMEA operators.

Photo Credit: AerCap

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CDB Aviation Leases Additional Boeing 737-800 to Neos

CDB Aviation will deliver a Boeing 737-800 to Italian leisure carrier Neos in November 2026, expanding a partnership begun in 2021.

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CDB Aviation Leases Additional Boeing 737-800 to Neos

Irish aircraft lessor CDB Aviation will expand its existing relationship with Italian leisure carrier Neos S.p.A. by leasing the airline one additional Boeing 737-800 narrowbody aircraft. The aircraft is scheduled for delivery in November 2026 and will support the carrier’s intra-European and intercontinental route networks.

The agreement, announced in an October 28, 2026, press release, builds upon a leasing partnership established between the two companies in 2021. The transaction highlights continued demand for current-generation narrowbody assets to sustain short- and medium-haul leisure operations.

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Expanding the Neos narrowbody fleet

Neos, a wholly owned subsidiary of Alpitour S.p.A. based at Milan Malpensa Airport (MXP), operates an all-Boeing fleet. The airline currently utilizes 18 aircraft, comprising the Boeing 737-800, Boeing 737 MAX 8, and widebody Boeing 787-9 Dreamliner.

The Boeing 737-800 serves as a core asset for the airline’s short- to medium-haul leisure routes. Neos deploys these narrowbody aircraft on intra-European and select intercontinental flights. This narrowbody capacity complements its widebody Boeing 787-9 Dreamliner fleet, which is dedicated to long-haul operations across the carrier’s 85 global destinations in Europe, Africa, Asia, the Middle East, and the Americas.

Marco Brusa, Chief Operating Officer of Neos, stated that the planned addition reflects confidence in the lessor as a trusted partner.

“We are pleased to further strengthen our partnership with CDB Aviation with the planned addition of this Boeing 737-800 to our fleet,” Brusa said. “This agreement builds on our established relationship and reflects our confidence in CDB Aviation as a trusted partner. We look forward to welcoming the aircraft and continuing our successful collaboration.”

A growing lessor-operator partnership

The commercial relationship between CDB Aviation and Neos began in 2021 with an initial agreement covering two Boeing 737-800s. CDB Aviation officially announced the delivery of those two aircraft on February 7, 2023. Those initial airframes were configured with 186 single-class seats to support the carrier’s network.

CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd., operates globally from its Dublin headquarters. As of early 2025, the lessor reported a fleet of 521 owned and committed assets, with aircraft placed at 85 airlines across 40 countries.

Gavan Daly, Head of Commercial EMEA at CDB Aviation, noted the company’s satisfaction with the expanded agreement.

“We are delighted to deepen our partnership with Neos through the agreement to lease this additional 737-800 from CDB Aviation’s portfolio,” Daly said.

Photo Credit: CDB Aviation

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Atlantic Airways Orders Two More A320neos for 2030 Fleet Goal

Atlantic Airways ordered two Airbus A320neos on Oct 27, 2026, targeting an exclusively neo fleet by 2030.

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Atlantic Airways Orders Two More A320neos for 2030 Fleet Goal

Atlantic Airways has committed to an exclusively next-generation fleet by 2030 following a firm order for two additional Airbus A320neo aircraft signed on October 27, 2026, in Toulouse, France. The Faroe Islands’ national carrier will use the new jets to phase out its older Airbus A320ceo models, standardizing its operations around the more fuel-efficient variant.

In a press release issued by Airbus, the manufacturer confirmed the agreement supports the airline’s strategy to streamline maintenance and reduce emissions while maintaining regional connectivity for Faroese communities. The financial terms and specific delivery dates for these two newly ordered airframes were not disclosed.

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Fleet modernization and operational strategy

The transition to a single-variant fleet provides distinct economic advantages for regional operators. By standardizing on the Airbus A320neo, Atlantic Airways can simplify its maintenance planning and streamline pilot training processes. The A320neo variant delivers at least a 20 percent reduction in fuel consumption and carbon dioxide emissions compared to previous-generation single-aisle aircraft.

Niels Mortensen, Chairman of the Board for Atlantic Airways, emphasized the strategic nature of the acquisition.

“Our ambition is to operate an exclusively A320neo aircraft fleet in the near future, and this agreement marks a significant step towards achieving that goal,” Mortensen said. “This investment will help ensure the continuous renewal of our fleet while supporting efficient operations.”

Airbus executives highlighted the role of the aircraft in maintaining essential transport links. Benoît de Saint-Exupéry, Executive Vice President of Sales for the Commercial Aircraft business at Airbus, noted that the addition of the latest generation aircraft reinforces the airline’s commitment to regional connectivity.

Atlantic Airways’ transition timeline

The Faroe Islands flag carrier has been an Airbus customer since 2008. The airline began its current modernization program when it took delivery of its first Airbus A320neo on July 12, 2019. The carrier currently operates a fleet of four Airbus A320 Family aircraft, split evenly between two older-generation A320ceos and two A320neos.

Prior to the October 2026 announcement, Atlantic Airways already held orders for two additional A320neos. Those airframes are scheduled for delivery in 2028 and 2029. The two newly ordered aircraft will complete the replacement cycle, allowing the airline to retire its remaining A320ceos and meet its 2030 target for an all-neo fleet.

The Airbus A320 Family remains the most popular single-aisle aircraft program globally. According to Airbus, the aircraft family has secured more than 20,400 orders from operators worldwide.

Photo Credit: Airbus

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