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31 Oct 2024

Aviation Market Snapshot - Q3 2024

Sky high growth continues to fuel growth

Our comprehensive report dives into the current state of the aviation industry, highlighting further key insights, emerging trends, and significant developments. With record-breaking demand for air-travel, innovative lease extensions, and evolving dynamics in the jet fuel market, the insights contained within this report are invaluable for staying ahead in this rapidly changing landscape.

Download the Q3 Aviation market report PDF 5.39 MB

Key market insights

86.2%
A record high for the Passenger Load Factor, reflecting robust demand for air travel.

Activity levels improve

The aviation industry has experienced a significant increase in passenger traffic, with both domestic and international travel showing strong growth. 

In August, the total Revenue Passenger-Kilometre (RPK) for the industry experienced a year-on-year (YoY) increase of 8.6%, surpassing the 6.5% YoY growth observed in Available Seat-Kilometre (ASK). The Passenger Load Factor (PLF), which measures the percentage of seats filled on flights, reached a record high of 86.2%, reflecting robust demand for air travel.

Derek Wong
Derek Wong, Aviation Debt Funds

Aircraft lease extension rates are at record levels and have in turn boosted demand for mid-life aircraft refinancing, creating more opportunities for aviation debt investors. We’re seeing increasingly sophisticated ways of structuring lease extension cash flows, particularly in maintenance buyouts and bespoke provisions on mid to end of lease financial compensation. Investec’s debt structuring reflects these innovative features to ensure continued alignment with equity while mitigating relevant risks.

Download the Q3 Aviation market report PDF 5.39 MB
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Investec Aviation Finance

$10 billion

Debt originated over the last 10 years

7 years

Track record delivering consistent returns above a defined hurdle rate to Investors across two core debt platforms

$1.3bn capital deployed

Raised $5.3bn of acquisition finance across 4 equity vehicles. 3 funds fully exited

Partnership approach

Full alignment with Investors via meaningful Investec co-investment in all managed platforms

Aviation finance from Investec

Investec co-invests in all managed platforms, with strong technical capabilities and a proven track record in originating, releasing and remarketing aircraft.

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