AerCap

In normal cycles, lessors have limited structural pricing power because airlines can solicit multiple financing sources.

Today’s environment is more favorable: OEM delivery delays and engine maintenance bottlenecks restrict supply, pushing lease rates higher and enabling strong gain-on-sale margins (Q1 2026 unlevered margin about 24 percent) and improved annualized net spread to 8.0 percent. This cyclical tailwind is meaningful but not guaranteed to persist.

We therefore assign above-average but not exceptional pricing power, acknowledging that spread resilience has held even as average cost of debt is ~4.1 percent.