IBA Insights

How Low Will A330 Lease Rates Go? 

The A330ceo is now in its replacement phase. Secondary market availability and storage are relatively high and the A330-200 in particular has been in oversupply for some time.

Powered by IBA.iQ, our advisory teams have seen lease rates soften in recent years. The wave of pre-GFC delivered aircraft have returned from their initial leases which has put downward pressure on rentals in the market.

When looking at the lease rental performance of the A330-200 model, the IBA.iQ Trends graph below clearly shows the decline in rates across the board for different vintages.

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How does the A330-200 compare with other aircraft types in the market?

Comparing lease rate performance against other aircraft types quantifies opportunities and risks. The IBA.iQ Trends chart below tracks the lease rate performance of new and 12 year old A330-200 aircraft against a new example of the Boeing 787-8 and a used narrowbody A320-200 aircraft.

The A320-200 has recovered well since 2012, strengthening on a constant age basis for a 12 year old aircraft. When looking at a newer generation widebody aircraft in the form of a new delivery Boeing 787-8, lease rates have declined. Stronger competition to acquire new aircraft amongst lessors through sale leaseback transactions has driven lease rates down for new aircraft.

New A330-200 lease rates have softened, but it is the mature examples that have been worst affected.

 

 

 

 

 

 

 

 

 

When it comes to fleet data, aircraft valuations and market trend analysis, our up-to-date, comprehensive and accurate data platform IBA.iQ is essential for future transaction due diligence and risk evaluation. Take a trial of the most accurate aviation data intelligence platform on the market.

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