Airline Economics magazine - Issue 84

A STRONG START TO THE YEAR

Welcome to the latest edition of Airline Economics.

The year is off to a strong start following the success of Airline Economics Growth Frontiers Dublin 2025. The discussions at this flagship event set an optimistic tone for the aviation finance and leasing industry, highlighting key trends, challenges, and opportunities as the sector continues to navigate a dynamic economic and regulatory landscape. The resilience and adaptability of industry leaders were evident in the insightful debates and forward-looking strategies shared on stage. Members can access all of the presentation and panel discussion video content from the Membership Dashboard on our website.

A highlight of the Dublin conference was the Airline Economics Aviation 100 Awards 2025, where we celebrated the outstanding achievements and innovations of the past year. The awards recognised excellence across the aviation finance sector, reflecting the dedication, ingenuity, and perseverance of the industry’s top performers. From groundbreaking transactions to transformative business strategies, the winners exemplify the best of what our industry has to offer.

In this issue, we take a closer look at airBaltic’s path to an IPO. With strategic pre-IPO investment in place, the Latvian carrier is preparing to make a significant move into the public market, strengthening its position amid evolving market conditions. Our exclusive report delves into airBaltic’s strategy and the factors driving its IPO momentum.

Another airline making strides is Animawings, which is set for expansion with its new fleet of A220s. We hear from CFO Alin Ratoi on how the airline is positioning itself for future growth and increasing its market presence.

Regulatory developments remain a key focus for the industry, and the Aviation Working Group (AWG) has taken a crucial step in shaping the industry’s approach to sustainability compliance. The newly released EU Taxonomy Best Practice and Interpretation Manual, developed in collaboration with Watson Farley & Williams, provides much-needed clarity on how aviation companies can align with the EU’s sustainable finance framework. This issue features insights from AWG Secretary General Jeffrey Wool and WFW’s Jim Bell on what this means for the industry.

Finally, our News section provides a roundup of all the breaking news from the first two months of the year, which includes the plethora of aircraft ABS deals from Carlyle Aviation Partners, Castlelake, AerCap and debut issuer Altavair. In airline news, Spirit Airlines has turned down another merger proposal from Frontier Airlines. The latest offer, valued at $400 million, included second-lien debt and equity stakes but failed to address previous concerns. Spirit remains committed to its standalone recapitalisation strategy. Abra Group and Azul are planning Brazil’s largest airline merger as Lufthansa’s finalised its €325 million investment in ITA Airways. Meanwhile, American, Delta, Southwest, and United Airlines posted robust financial results for the fourth quarter of 2024, benefiting from premium travel demand and loyalty revenues. Boeing and Airbus report deliveries and chart a course for improvement in 2025.

As always, we hope you find this issue insightful and informative. We welcome your thoughts and feedback as we continue to cover the key developments shaping the aviation.