Season of Gratitude: Aircraft Finance Market Insights & Trends

Part of issue #
3
published on
January 2, 2025
Finance

Amid the hustle and bustle of the holiday season, it’s important to pause and recognize that this season itself is rooted in the spirit of gratitude. As we wrap-up another year I thought it fitting to look back and touch on three things I’m grateful for in the industry. 

First, I’m grateful that interest rates continue to normalize. In looking at the 10-year treasury as of this writing, it sits at 4.181%, which is down from 4.425% as of our last publication. We’ll dive into the subject of “the yield curve” in a future discussion but we’re starting to see the yield curve flatten, meaning shorter-term rates equal to or lower than longer term rates, which is the sign of a “normal” rate environment and “healthier” economy. 

Second, I’m grateful that the aircraft buying market has seemingly adapted to the current interest rate environment. While rates remain elevated compared to recent memory, we continue to see stable or increased loan demand and are hearing the same from peers. Even with interest rates where they are, it’s still a great time to consider financing. 

And speaking of peers, for my third gratitude, I’m grateful for our industry peers who specialize in aircraft lending. It’s clear through reviewing the data from FAA filings, these financial institutions remain engaged in the industry and appear to be positioned well for continued ability to serve the industry in 2024. It’s a reminder of the value of working with a financial institution who understands how to finance an aircraft, and something to keep in mind should you be exploring financing or refinancing. 

Looking forward, I think 2025 should bring some clarity on where rates, and the economy, go from here, and we’ll dive into that in our publications early next year. In the meantime, I hope you enjoy the rest of the holiday season!

‍

Get expert insights and industry updates delivered to your inbox every month!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.