Aircraft Leasing in Ireland 2007-2016

Over the period 2007 to 2016 income has risen by almost 140%, while expenses rose more sharply by more than 160%. Annualised increases for each of income, expenditure and profit have been approximately 10%, 11% and 7% per annum respectively. The sharpest change in profits came between 2013 and 2014, with a rise of 47%, having fallen 40% between 2007 and 2008. In absolute terms, the largest increase in income occurred in 2015, when it increased by €3.4bn to €13bn.

Aircraft Leasing Companies have earned the majority of their income in their primary activity of the operational leasing of aircraft. This activity has generated over €66bn for the industry for the total period, rising 188% from €4.4bn in 2007 to €12.7bn in 2016.

However, other sources of income have raised almost €2bn in a single year (2012). These sources include Fees & Commissions and Interest & Dividends.

In 2016, 11.3% of all income came from sources other than aircraft leasing, its lowest over the 10 year period. Over €15bn (19%) of income came from sources other than the primary activity between 2007 and 2016.

At more than €5bn in 2016, the highest cost to the industry has been depreciation, an accounting cost which reflects the reduction in value of the aircraft leased by the company, over its useful life. This is followed by interest, which in 2016 was €3.3bn.

Tax paid by Aircraft Leasing firms has been somewhat volatile over the decade.  Tax as a % of profits has followed a downward trend since 2007. More than €1.6 billion has been paid during the period, with over 98% of this paid in Ireland. An average of €164 million per year was paid, with €232 million the most paid in a single year (2014).