Aircraft Leasing in Ireland 2018

Income has risen by almost 235%, while expenses rose by around 211%. Annualised increases for each of income, expenditure and profits have been approximately 14.4%, 13.4% and 17.4% per annum respectively. The sharpest change in profits came between 2013 and 2014, with a rise of 47%, having grown by 8% in the previous year. In absolute terms, the largest increase in income occurred in 2015, when it rose by €3.1bn to €12.7bn. Expenditure figures shown are inclusive of interest and tax.

Aircraft leasing companies have earned the majority of their income in their primary activity of the operational leasing of aircraft. This activity has generated almost €87bn for the industry for the total period, rising 265% from €4.2bn in 2009 to €15.2bn in 2018.

However, other sources of income raised almost €2.9bn in a single year (2017). These sources include fees & commissions and interest & dividends.

In 2016, 12.2% of all income came from sources other than aircraft leasing, its lowest over the 10 year period. Over €18bn (17%) of income came from sources other than the primary activity between 2009 and 2018.

By country, China has been the most significant source, providing 11.2% of all operational leasing income in 10 years. The next largest country was the United States, at 9.1%, followed by Ireland at 6.7%.

At more than €6bn in 2018, 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 2018 was €4.5bn.

Tax paid by aircraft leasing firms has been somewhat volatile over the decade. More than €2.2bn has been paid during the period, with over 96% of this paid in Ireland. An average of €223m per year was paid, with €589m the most paid in a single year (2018). The figure in 2018 was over 26% all tax paid during the decade. Tax paid as a percentage of profits before tax was at its highest in 2009, at just over 14%.