Ever wondered who owns the plane you’re about to board? Spoiler alert: It’s probably not the airline you’re flying with.
Once upon a time, airlines owned their fleets. But fast forward to 2025, and over half of the global commercial aircraft are leased. That’s right…most of the world’s planes aren’t owned by the airlines you think they are. They’re owned by lessors.
Leasing has become the preferred option for airlines, rising from roughly 10% of the total fleet in the 1970s to about 58% in 2025. This shift allows airlines to operate with more flexibility and less capital investment.
Airlines lease rather than buy aircraft because it preserves cash, reduces upfront capital expenditure, and provides flexibility to adjust fleet size with demand. Leasing also allows access to newer aircraft models without long-term commitment, limits exposure to depreciation risk, and can simplify maintenance and financing arrangements.
The flying public is largely unaware of these giant lessors, these Sky Kings, if you will. So who are they?
As of the latest data in 2025, these top five aircraft lessors—AerCap, Avolon, SMBC Aviation Capital, BOC Aviation, and Air Lease Corporation—control roughly 30%–35% of the global commercial aircraft fleet. To break it down, AerCap is by far the largest, holding around 12%–13% alone. The next four combined add another 18%–22%.
These companies own thousands of aircraft, leasing them to airlines worldwide. They’re the unseen giants of the skies.
And then there’s China. Chinese leasing companies are making aggressive moves to dominate the market. Companies like ICBC Leasing and CDB Aviation are rapidly expanding their fleets and market share.”
With China’s growing influence in global aviation, these companies are challenging traditional Western lessors and reshaping the leasing landscape.
Meanwhile, aircraft manufacturers such as Boeing, Airbus, and Embraer are struggling to keep up with demand. Aircraft that are particularly popular but remained mired in production delays include the Airbus 321neo, the Boeing 737 MAX 10, and the Embraer E175. Accordingly, the base values and lease rates for these aircraft have been sharply rising.
Supply chain issues, labor shortages, and production delays have led to a backlog of orders for a wide range of aircraft. These delays have created a persistent imbalance between demand and supply, likely to continue through the end of the decade.
With a limited supply of new aircraft, lessors have the upper hand. Lease rates are climbing, and airlines are feeling the pressure. Airlines are paying more to lease aircraft, impacting their bottom lines and potentially leading to higher ticket prices for passengers.
What’s next? Significant long-term growth. The global aircraft leasing market is projected to grow from $209.05 billion in 2025 to $292.06 billion in 2029, at a compound annual growth rate of 8.70% during the forecast period, according to the Business Research Company.
As airlines continue to modernize their fleets and navigate economic challenges, leasing will remain a crucial strategy.
The Downsides of Leasing
And yet, while aircraft leasing offers flexibility, it also carries notable downsides for both airlines and the industry. Lessors don’t discuss these negatives, of course, but they’re very real.
Lease payments can be expensive over time, eroding profitability compared with outright ownership. Airlines face less control over the aircraft, including limits on customization and operational decisions.
Dependence on lessors exposes carriers to market volatility, rising lease rates or limited availability during demand surges can strain finances. For the industry, heavy reliance on leasing can create systemic risk if lessors face credit or liquidity problems, and it can pressure residual values, particularly for older or non-standard aircraft.
Overall, leasing shifts financial and operational burdens from ownership to recurring obligations, leaving airlines more exposed to external shocks.
However, with increased competition among lessors and ongoing supply chain challenges, the leasing market will continue to grow in 2026 and beyond.
Next time you board a plane, remember: The airline may not own it. But rest assured, it’s still part of the global aviation ecosystem, connecting the world one leased aircraft at a time.
Editor’s Note: This article is a condensed transcript of the video presentation. The video provides greater details, including charts.
