The 65% Advantage: How Ireland Keeps Its Aircraft Leasing Edge in 2026

Ireland's dominant position in global aviation finance has never looked more assured. The KPMG Ireland Aviation Leaders Report 2026, published in January 2026, frames the current moment as one of evolution and opportunity. Ireland manages approximately 65% of the world's leased aircraft fleet. Irish lessors manage approximately $150 billion (€127.26 billion) in assets. The strategic question is not how Ireland arrived here, but how it extends that leadership.

The KPMG report warrants a constructive reading. Aviation leasing is entering a growth phase supported by record airline profitability, expanding capital markets, and an Airbus forecast of over 20,000 new aircraft over the next two decades. Irish lessors are well positioned within that cycle, strengthened by three structural advantages: the depth of Ireland's financing ecosystem, the sector's improving rating trajectory, and the enduring relevance of the Cape Town Convention framework.

The financial fundamentals underpinning Irish lessors are materially stronger than five years ago. The KPMG report notes aviation leasing is capable of a compound annual growth rate of 8% over the next decade. Multiple Irish lessors received rating upgrades in 2025, and the aviation ABS market surged to $10 billion (€8.48 billion) in US issuances in 2025. AerCap and Avolon are among the global leaders operating from Irish bases.

Ireland's legal and regulatory architecture is a genuine competitive differentiator, not merely a legacy advantage. Ireland's ratification of the Cape Town Convention in 2006, and its hosting of Aviareto, the international aircraft register, provides the most robust cross-border repossession framework available — proved decisive when over 400 aircraft were repossessed following Russia sanctions. The Irish High Court's Commercial Division has demonstrated the speed and sophistication to resolve complex aviation disputes, reinforcing confidence among international aviation counterparties.

The supply-constrained environment has reinforced lessor pricing power. Lease rate factors have risen approximately 15% since pre-pandemic levels, driven by a supply-demand imbalance not expected to fully resolve until late in the decade. Aircraft utilisation is climbing, retirements are being deferred, and airlines are competing intensely for modern narrowbodies. Irish lessors with portfolios weighted towards new-generation aircraft are particularly well placed to capture that demand, according to IQ-EQ's February 2026 market analysis.

Three strategic priorities deserve attention. First, lessors should accelerate transition towards new-generation aircraft and engine leasing, which the KPMG report identifies as well positioned for further growth. Second, deepening engagement with sustainability-linked financing is increasingly necessary as fleet greening and SAF adoption become embedded in airline strategy. Third, the talent pipeline warrants sustained investment: the sector supports average salaries of approximately €165,000, and the specialised skills it requires take years to build.

The KPMG Ireland Aviation Leaders Report 2026 is unambiguous: demand is robust, capital markets are open, and the growth outlook is strong. Ireland's leasing sector enters its next phase from a position of undisputed global leadership. The task for executives is to ensure that the institutional, regulatory, and talent infrastructure that built that position evolves at the pace the market demands — keeping Ireland the address of choice for every lessor that matters.

(The views expressed by the writer are his/her own and do not necessarily reflect the views or positions of BusinessRiver.)