PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1625321
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1625321
According to Stratistics MRC, the Global Aircraft ACMI Leasing Market is accounted for $5.95 billion in 2024 and is expected to reach $9.92 billion by 2030 growing at a CAGR of 8.9% during the forecast period. Aircraft ACMI leasing refers to a type of leasing arrangement in the aviation industry where an airline or leasing company provides an aircraft along with its crew, maintenance, and insurance (ACMI) to another airline or operator. The lessor handles the technical aspects and staffing of the aircraft, so the lessee can operate the aircraft with little operational burden owing to ACMI leasing. Moreover, airlines that need to quickly scale operations or add capacity can benefit from its flexibility and cost-effectiveness without having to deal with the long-term commitment and financial strain of aircraft ownership.
Growing interest in air travel
Increases in the middle class, population growth, and disposable income have all contributed to a steady increase in passenger demand for the global aviation industry. Airlines now have to quickly modify their fleet capacity to suit new routes, peak travel seasons, and unforeseen spikes in demand, like during holidays or special events. Additionally, airlines can manage their fleets in accordance with market conditions owing to ACMI leasing, which gives them the freedom to satisfy these short-term demands without having to worry about acquiring more aircraft.
Restricted access to appropriate aircraft
A common factor driving demand for ACMI leasing is the requirement for particular aircraft types, especially those that are more effective or appropriate for specific routes. Such aircraft may not always be readily available, though, as lessors might not carry the precise model or configuration needed. In certain situations, this may result in subpar equipment for particular operational requirements or delays in obtaining leased aircraft. Furthermore, airlines may have trouble finding the ideal aircraft if they are looking for certain features, like long-range or fuel efficiency, which could force them to make a compromise on aircraft type or endure longer wait times.
Growth of low-cost carriers (LCCs)
An important opportunity has been created for the aircraft ACMI leasing market by the expansion of low-cost carriers (LCCs). Because they usually have narrow profit margins, LCCs might not have the funds to make significant fleet investments. Without having to make significant capital investments or long-term aircraft ownership commitments, ACMI leasing enables these carriers to swiftly and economically grow their operations. Moreover, the growing demand for low-cost travel in both domestic and foreign markets has given LCCs the freedom to expand their operations and penetrate new markets while preserving operational effectiveness and lowering financial risk owing to ACMI leasing.
Economic uncertainty and volatility
Economic factors that can significantly affect the aircraft ACMI leasing market include global recessions, inflation, and changes in fuel prices. Economic downturns can result in lower travel demand, which may lead airlines to reduce operations and scale down their fleets. This could have an impact on the profitability of ACMI leasing arrangements because airlines may be less likely to lease additional aircraft. Additionally, rising fuel prices can increase airlines' operational costs, which may cause them to be more cautious in their fleet decisions and possibly reduce leasing activity.
The COVID-19 pandemic had a substantial impact on the market for aircraft ACMI leasing, causing major disruptions to international air travel and operations. Travel restrictions, decreased passenger demand, and financial uncertainty caused a sharp decline in the demand for leased aircraft during the peak of the pandemic, forcing airlines to scale back operations and postpone plans for fleet expansion. Many carriers suspended or reduced ACMI leasing agreements in an effort to save money and resources. However, as the aviation industry started to recover, the market for ACMI leasing saw a slow recovery, driven by airlines' need for flexible, short-term capacity to handle fluctuating travel demand.
The yogurt segment is expected to be the largest during the forecast period
The market for aircraft ACMI leasing is expected to be dominated by the narrow-body aircraft segment. Because of their great versatility and affordability, narrow-body aircraft-also known as single-aisle aircraft-are the go-to option for short- to medium-distance travel. Airlines frequently use them for both domestic and international routes because they can carry a greater number of passengers and use less fuel than wide-body aircraft. Moreover, airlines frequently choose narrow-body aircraft for ACMI contracts when they need to quickly adjust capacity without committing to a long-term lease because they are also more economical for airlines to lease on a short-term basis.
The cheese segment is expected to have the highest CAGR during the forecast period
In the market for aircraft ACMI leasing, the Cargo Operators segment is anticipated to grow at the highest CAGR. The air cargo industry has been greatly boosted by the expansion of e-commerce, the growing need for dependable and quick shipping, and the growing demand for global supply chain solutions. Because ACMI leasing offers flexibility, it becomes a desirable option for cargo operators looking to grow their fleets in order to meet the increasing demand, especially for high-value and time-sensitive goods. In order to manage demand variations, seasonal peaks, or unforeseen fleet disruptions, cargo operators frequently need short-term aircraft capacity.
Due to the presence of major international airlines, a strong air travel infrastructure, and a high demand for flexible leasing solutions, the North American region is expected to hold the largest share of the aircraft ACMI leasing market. North American carriers often use ACMI leasing to manage fluctuating demand, particularly during peak travel seasons or periods of rapid fleet expansion. Furthermore, the region is home to leading lessors offering a wide range of aircraft, making it an attractive hub for ACMI leasing transactions. The strong economic recovery and the ongoing expansion of cargo operations further support the demand for ACMI leasing in North America, which adds to the region's dominant position in the market.
The market for aircraft ACMI leasing is anticipated to grow at the highest CAGR in the Asia-Pacific area. Strong growth prospects in the region are a result of the quick expansion of air travel in nations like China, India, and Southeast Asia, as well as the rising need for adaptable fleet management systems. Due to the growing middle class and better air connectivity, airlines in this area are using ACMI leasing more and more to satisfy the growing demand for both domestic and international flights. Moreover, the need for ACMI leasing is also being fueled by the expansion of regional cargo operations and the expanding e-commerce industry, especially for narrow-body and cargo aircraft.
Key players in the market
Some of the key players in Aircraft ACMI Leasing market include ZELA Aviation, ASL Aviation Holdings, Boeing, Nordic Aviation Capital Inc, 21Air, LLC, Avolon Holdings Limited, euroAtlantic Inc, Orix Aviation, Atlas Air Inc, BOC Aviation Limited, Aviation Capital Group LLC, SmartLynx Airlines, DAE Capital Inc, SMBC Aviation Capital and AerCap Holdings N.V.
In December 2024, AerCap Holdings N.V. announced it has signed lease agreements for two Boeing 737-800 aircraft. The aircraft will be operated by Mukamalah Aviation Company, operating under the brand name "Aloula Aviation," for the transportation of Aramco Group passengers in Saudi Arabia.
In August 2024, Nordic Aviation Capital (NAC) has executed a sale agreement for two ATR 72-600s with DAT. DAT A/S, formerly named Danish Air Transport, is a Danish airline headquartered in Vamdrup, Kolding, operating 23 aircraft on scheduled regional flights from Northern Norway to Lampedusa in the Mediterranean.
In July 2024, Zela Aviation is pleased to announce a successful agreement in which Fly Air 41 has ACMI wet leased their A319 aircraft to Cyprus Airways, commencing operations on July 18th. This strategic partnership, brokered by Zela Aviation, underscores their commitment to facilitating dynamic and efficient solutions in the ACMI aviation sector.