CHICAGO –
The shortage of planes is a money maker for some airlines because the lack of supply allows carriers to sell new planes to leasing companies at much higher prices than they paid.
Airlines such as Denver-based Frontier Airlines and Hungary’s Wizz Air have reported profits of hundreds of millions of dollars by selling planes upon receipt and leasing them back for their own use. These sale-and-leaseback transactions have long been a way for airlines worldwide to generate liquidity and ease pressure on their balance sheets.
The tight aviation market has made these deals much more attractive, with US airlines accounting for 24% of global sale-and-leaseback transactions this year, up from 10% in 2022, according to Cirium Ascend Consultancy.
