IATA chief: Boeing and Airbus woes are a win for jet leasing

April 16, 2025, 4:31 PM

Willie Walsh, director general of the International Air Transport Association, says aircraftleasing companies will benefit from delays at Boeing and Airbus — Willie Walsh, director general of the International Air Transport Association, says aircraft leasing companies will benefit from delays at Boeing and Airbus

‘In fantastic position’, says Willie Walsh
Order backlogs at aircraft makers
Airlines need capacity

Aircraft leasing companies in the Arabian Gulf are profiting from prolonged delivery delays at aircraft makers Boeing and Airbus, with order backlogs at the manufacturers unlikely to clear before the end of the decade.

“These [aircraft leasing] guys are in a fantastic position because they have a fantastic fleet of aircraft,” Willie Walsh, director general of the International Air Transport Association (IATA), told AGBI. “They are the winners.”

Dubai government-owned Dubai Aerospace Enterprise, the Middle East’s largest aviation leasing and engineering company, reported a 6 percent year-on-year increase in net profit to $149 million in July last year.

In October it acquired 17 aircraft valued at $1 billion, immediately placing them with 11 airlines, the company said in a statement.

In neighbouring Saudi Arabia, AviLease, a state-owned lessor backed by the Public Investment Fund, secured a long-term lease deal this month with Turkish Airlines for eight Airbus A320neo aircraft.

“They’re doing deals with tier-one airlines because the airlines need the capacity but can’t get the new aircraft,” Walsh said while on a visit to Dubai. Walsh was previously CEO of British Airways and Ireland’s Aer Lingus.

As of the end of March France’s Airbus reported a backlog of 8,720 jets, while US maker Boeing listed 6,319 unfulfilled orders, according to aviation intelligence firm Forecast International.

The resulting surge in demand from airlines for leased aircraft has driven up prices by as much as 50 percent over the past decade, Walsh said.

“A lessor wants to place aircraft for lengthy periods of time – not just for a year or even less,” said John Grant, partner at UK-based Midas Aviation and AGBI columnist.

“While those rates are high, the lessors are looking at long-term relationships in most cases.”

Dubai’s Emirates airline has 314 aircraft on order from both Airbus and Boeing.

Its president Tim Clark has been an outspoken critic of Boeing in particular over delays to the long-awaited 777X wide-body aircraft, now slated for delivery in October. In an interview with Reuters, Clark expressed skepticism over the timeline.

As of its most recent financial year ending March 31 2024, Emirates had 122 aircraft on lease, of which nine were freighters.

Badr Abbas, senior vice president at Emirates SkyCargo, told reporters in Dubai that the airline added one freighter last year and expects to receive 10 Boeing 777 freighters by the end of next year.

Said Walsh of aircraft lessors: “They’re in a very nice position and they’ve done well. I think they’ll continue to do well for quite a few years.”