Reported 4 months ago
Aircraft shortages in the market are leading to lucrative opportunities for some airlines, as the lack of supply is allowing carriers like Frontier Airlines and Wizz Air to sell new planes to leasing companies at significantly higher prices than they paid, resulting in gains up to hundreds of millions of dollars. These sale-and-leaseback transactions have become more attractive due to the tight airliner market, with U.S. airlines accounting for a larger share of global transactions this year. The shortage of aircraft deliveries expected this year, along with higher new aircraft prices, is impacting the industry, with lease prices surging and some airlines relying heavily on these deals for profitability.
Source: YAHOO