“Amidst resurgent demand and rising costs we see a flexible industry – prepared for change”
Aviation industry leaders are cautiously optimistic about the sector’s trajectory, as resurgent demand continues to clash with delivery delays, maintenance bottlenecks, and geopolitical uncertainty. ACC Aviation, a provider of ACMI (Aircraft, Crew, Maintenance, Insurance), Charter and Consulting services, has looked closely at the aircraft trading and leasing sector and describes a market finding its footing after years of turbulence, but still navigating tight margins and chronic supply chain strain.
“Operators are facing ongoing aircraft and engine shortages, with thousands of new aircraft yet to be delivered,” comments Nimalan Vikneswaran, Regional Vice President. “As a result, older jets are staying in service longer, driving up lease rates for mid-life assets. Some lessors are acquiring new generation aircraft for teardown to secure spare parts, while others are rebalancing portfolios toward proven, mature types to maintain operational flexibility.”
Though the immediate impact of tariffs has been limited, global trade tensions continue to unsettle the market. “Suppliers remain cautious about passing on cost increases, while airlines are reluctant to absorb them,” Vikneswaran states. “Even if these sorts of trade disputes create short-term volatility, the overall aviation ecosystem is robust enough to withstand shocks.”
With geopolitical instability – from the war in Ukraine to shifting trade alliances – adding new layers of complexity, diversification remains critical at leading lessors. Broader portfolios spanning multiple regions and airline types are seen as key to managing localised risks and ensuring long-term stability.
“However, maintenance, repair and overhaul (MRO) providers remain under pressure,” observes Vikneswaran. “Turnaround times for engines and components is still far longer than before the pandemic. Lead times for shop visits and aircraft transitions can now stretch to six months or more. While there are signs of gradual improvement, many MRO shops do not expect a full normalisation before 2027.”
The ACC Aviation analysts anticipate a steady market through the rest of the decade, defined by consolidation among lessors, cautious fleet growth, and sustained demand for reliable mid-life aircraft. Although rising costs and environmental regulation will continue to shape strategy, it is agreed amongst aviation professionals that the sector’s underlying fundamentals remain strong.”
“Even amidst supply constraints and economic uncertainty, aviation’s adaptability stands out,” says Vikneswaran. “We see aircraft useful-life extensions everywhere, operators will always find a way to fly.”
