AerCap sees planemaker production woes boosting lessors

The world’s largest aircraft lessor predicted on Thursday that planemakers will be hampered by supply chain issues for years, further slowing new jet deliveries and boosting leasing demand already benefiting from a rebound in air travel.<br/>AerCap Chief Executive Aengus Kelly, whose company has a portfolio of 3,599 aircraft, engines and helicopters, said he expected further delays in deliveries, in particular due to the need for manufacturers to divert scarce engines to their existing fleet to be used as spares. He said recently revised production plans by Airbus appeared “somewhat optimistic” after the planemaker cut its annual jet delivery forecast and put the brakes on short-term production increases due to supply pressure. AerCap said supply chain issues would continue to constrain aircraft production over the next few years. “So what do airlines do in the meantime? They turn to the leasing companies where delivery certainty is higher,” Kelly said on a call with analysts. Airbus last month delayed phase one of a planned output increase by six months to early 2024 but voiced confidence in its ultimate goal of raising A320 output to 75 a month in 2025. Lessors, who buy new jets both directly from manufacturers and indirectly by taking over airline commitments in sale-and-leaseback deals, will likely increase their share of deliveries to around 65% from just over half currently, Kelly added.<br/>