Aerospace Industry Today

Commercial Aircraft Leasing Market Size Valued at USD 69.2 Billion in 2024, Expected to Reach USD 120 Billion by 2035 at a CAGR of 5.1% | Forecast 2025–2035

Short Summary: The Commercial Aircraft Leasing Market, valued at USD 69.2 billion in 2024, is projected to expand to USD 120 billion by 2035, registering a CAGR of 5.1% during the forecast period. Growth is driven by rising global air travel demand, airline preference for asset-light business models, increasing fleet modernization, and strong demand from emerging aviation markets. Leasing companies continue to benefit from airline focus on cost efficiency, flexible fleet management, and reduced capital expenditure.
Published 16 January 2026

The Commercial Aircraft Leasing Market is witnessing steady expansion as airlines increasingly adopt leasing models to manage fleet costs and improve operational flexibility. The market is valued at USD 69.2 Billion in 2024 and is expected to reach USD 120 Billion by 2035, growing at a CAGR of around 5.1% during the forecast period 2025–2035.

Aircraft leasing has become a preferred option for airlines seeking access to modern aircraft without heavy capital investments. Leasing allows carriers to adjust fleet size quickly, reduce balance-sheet pressure, and respond efficiently to changes in passenger and cargo demand.

Market Overview

Commercial aircraft leasing involves airlines renting aircraft from leasing companies instead of purchasing them outright. This model supports airlines in minimizing upfront costs while maintaining fleet modernization. The market includes various lease types such as operating leases, finance leases, wet leases, and dry leases, catering to different airline requirements.

The growing preference for asset-light business models across the aviation industry is a key factor contributing to the increasing adoption of leased aircraft globally.

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Competitive Landscape: Air Lease Corporation,Avolon,Oak Hill Advisors,Nordic Aviation Capital,Airbus,Boeing Capital Corporation,SMBC Aviation Capital,Boeing,CIT Aerospace,DAE Capital,Macquarie AirFinance,International Lease Finance Corporation,Royalty Group,GECAS,AerCap Holdings

Key Market Drivers

One of the primary drivers of the commercial aircraft leasing market is the steady recovery and growth of global air travel. Rising passenger traffic, expansion of low-cost carriers, and increasing international connectivity are pushing airlines to expand their fleets.

Leasing provides airlines with financial flexibility, enabling them to manage fuel price volatility, maintenance costs, and economic uncertainties. Additionally, leasing supports faster fleet expansion compared to long aircraft procurement cycles.

Another major driver is fleet modernization. Airlines are replacing older aircraft with fuel-efficient, next-generation models to reduce operating costs and comply with environmental regulations. Leasing offers a cost-effective pathway to access these newer aircraft.

Aircraft Type Insights

Narrow-body aircraft account for the largest share of the leasing market due to their extensive use on short- and medium-haul routes. These aircraft are widely used by low-cost and regional airlines due to their lower operating costs and high route flexibility.

Wide-body aircraft leasing is also growing steadily, supported by long-haul international travel and expanding air cargo operations. Leasing wide-body aircraft helps airlines manage high acquisition costs while maintaining long-distance connectivity.

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Lease Type Analysis

Operating leases dominate the market as they allow airlines to use aircraft without ownership responsibilities. These leases provide flexibility in fleet management and are preferred by airlines focusing on liquidity and operational efficiency.

Finance leases continue to be used by airlines seeking long-term control over aircraft assets. Wet leasing is gaining traction for short-term capacity requirements, seasonal demand fluctuations, and new route launches.

Regional Outlook

North America holds a significant share of the commercial aircraft leasing market due to the presence of major airlines, established leasing companies, and strong aviation infrastructure.

Asia-Pacific is expected to be the fastest-growing regional market during the forecast period. Rapid growth in air passenger traffic, expanding airline fleets, and increasing demand for domestic and regional air travel in countries such as China and India are driving market expansion.

Europe also represents a key market, supported by fleet renewal programs and strong demand from both full-service and low-cost carriers.

Market Outlook

The commercial aircraft leasing market is expected to maintain stable growth over the next decade. Rising air travel demand, increasing airline fleet requirements, and the shift toward cost-efficient leasing models will continue to support market expansion.

With the market projected to surpass USD 120 Billion by 2035, commercial aircraft leasing will remain a critical component of the global aviation industry.

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Table of Contents

SECTION I: EXECUTIVE SUMMARY AND KEY HIGHLIGHTS

SECTION II: SCOPING, METHODOLOGY AND MARKET STRUCTURE

SECTION III: QUALITATIVE ANALYSIS

SECTION IV: QUANTITATIVE ANALYSIS

SECTION V: COMPETITIVE ANALYSIS ........

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