Our director of aircraft leasing, Ian Welsh, discusses how we’ve helped airlines respond to high demand for leisure travel this summer and what we’re expecting over the next 12 months.
High-flying summer success sets up busy year for aircraft leasing division
“Despite purchasing power pressures and a global economic slowdown, people have still been prioritising making previously postponed trips this summer,” says our director of aircraft leasing, Ian Welsh. “This has meant airlines have had to temporarily grow their fleet by leasing aircraft to meet high seasonal demand.”
Bookings suggest that airline ticket demand for domestic flights in large countries and intra-Europe travel were back to pre-pandemic levels as of May 2023, while demand for international trips returned to 80% of its 2019 level. With high global demand for leisure travel this summer, we discuss how our aircraft leasing division has helped airlines respond and what we’re expecting over the next 12 months.
A busy summer period
“High consumer demand has naturally led to a busy aircraft leasing market in 2023,” says Ian. “Because of this, operators have been quoting higher-than-usual prices for their aircraft this summer. However, we’ve still been able to secure cost-effective solutions for our clients.
“As a result, we’ve contracted for more than 10,000 block hours this year – and we’re only in September. Our global network of offices has allowed us to quickly deliver a mixture of wet, damp, dry and hybrid lease contracts for numerous airlines in Africa, Asia, North America and Europe. The latter’s commercial airline industry has been particularly busy this year, with consumer demand almost matching pre-pandemic levels.
“We’ve also been talking to our clients about whether they’ve been affected by Pratt & Whitney’s engine recall. The aerospace manufacturer recently recalled more than 1,000 engines due to microscopic cracks, so we’ve been on hand to ensure airlines have enough aircraft in their fleet to meet their demand.”
What do we expect over the next 12 months?
“September is usually when a lot of summer leases end, so we’re already looking ahead to the next peak period, December.
“The busy summer period and the relationships we’ve established and/or strengthened have given us a great platform for the rest of the year. We’ve already secured leasing contracts with new and existing clients for the winter season, as airlines are still expecting high demand despite economic slowdowns.
“While next summer’s forecast is harder to predict, we’ve been advising clients to secure aircraft early to avoid the abnormally high prices we saw this year. Right now, there’s good aircraft availability for both winter 2023 and summer 2024, which means our team can better negotiate cost-effective rates on behalf of our clients.”
Why choose Air Charter Service for your aircraft leasing requirements
“Collectively, our aircraft leasing team has over 50 years of aviation experience,” Ian concludes. “During that time, we’ve built close relationships with operators around the world and always provide the best prices and availability for our clients, even at short notice.
“Additionally, with more than 30 offices spanning six major continents, we provide local knowledge of regional markets on a global scale. Whether you need a last-minute sub-charter in Africa or additional aircraft to fulfil a busy summer flight schedule in Europe, our cost-effective and flexible aircraft leasing solutions allow airlines to meet seasonal and unexpected demand.
“Our team is also on hand 24/7 to ensure all wet leases run smoothly. In the unlikely event that an aircraft requires maintenance, we have a dedicated AOG team that can quickly source an alternative aircraft to ensure schedules are maintained. Our private jet and cargo charter specialists will also organise any crew or spare part movements when required to ensure a successful operation.”
To learn more about our aircraft leasing solutions or secure your aircraft for this winter or summer 2024, contact one of our experts today.