Morningstar DBRS predicts stable outlook for lessors in 2024

Global credit rating agency Morningstar DBRS has predicted a stable outlook for aircraft lessors in 2024, with industry fundamentalists ‘remaining supportive of sound aircraft lessor performance and credit ratings’. In line with airline profitability improving across most regions, a low level of airline defaults is expected in the coming year. Lease rates and aircraft values will continue to improve, underpinned by what Morningstar describes as a ‘notable imbalance of new aircraft deliveries from the OEMs and demand from airlines to increase capacity’. ‘Lessors continue to benefit from the ongoing recovery in global aviation with increasing passenger volumes driving airline demand