• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

Aircraft lessor Avolon sees impact of supply issues lasting a decade

by January 10, 2025
written by January 10, 2025

DUBLIN (Reuters) – A long-running production shortfall by planemakers will underpin supply and demand dynamics that are boosting airline and lessor profits for at least another decade, the head of the world’s second-largest aircraft leasing company Avolon said on Friday.

Aircraft manufacturers and suppliers have struggled to keep up with a post-pandemic recovery in travel due to rising costs, labour and parts shortages, issues that have been exacerbated by safety woes at Boeing (NYSE:BA) and a strike by its staff last year.

Avolon’s annual outlook report predicted that airlines’ net profit would rise by 16% to over $36 billion in 2025, driven by low fuel prices, strong revenue and the fact that plane shortages have allowed them to prioritise the most profitable routes.

“That production shortfall underpins the supply and demand balance, not just for the next three or four years, but for at least another decade,” Avolon Chief Executive Andy Cronin told Reuters.

Cronin said Avolon’s view that the supply and demand balance would be “firmly in our favour” over that time period spurred it to order 200 aircraft in 2023. It added 118 more aircraft last year through the acquisition of smaller rival Castlelake Aviation Limited, bringing its total fleet to 1,129 aircraft.

The Dublin-based lessor said Boeing and main rival Airbus will continue to struggle to hit their targets to ramp up production despite increasing their deliveries.

Avolon, which is a subsidiary of China’s Bohai Leasing Co Ltd, also predicted that orders from Chinese firms will rise sharply to 800 aircraft in 2025, citing growth in travel demand and a need to replace an aging fleet.

While Avolon’s report described the aviation outlook for 2025 as robust, it also noted that economic cycles usually last four to six years and that the current cycle is already in its fourth or fifth year, with growth in Europe slowing.

“We characterize it as a low visibility environment at the moment. I think there’s uncertainty around foreign policy and trade policy, and consequential impacts as it pertains to the aviation industry,” Cronin added.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Peru central bank cuts benchmark interest rate to 4.75%
next post
Dollar gains extend ahead of US jobs reading

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025
    • This California startup is cleaning water and removing CO₂ from the atmosphere — all at a reduced cost

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (504)
    • Stock (6,426)

    Latest News

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

    Popular News

    • Mattel recalls Fisher-Price Snuga infant swings on suffocation risks after five deaths
    • Analysis-Bond vigilantes spare France for now, but political crisis will bring more pain

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy