Pent-up travel demand and China’s reopening continue to support global aircraft demand, tilting the supply-demand balance in favour of lessors, said DBS Group Research.
In a report on Monday (May 29), the research house said it is positive on aircraft lessors BOC Aviation and China Aircraft Leasing Group. It also maintained its “buy” call on both counters.
This comes amid the lessors “promising” medium-term earnings trajectory and undemanding valuations, it said.
“This growth was primarily driven by a resurgence of travel in Asia, led by China’s long-awaited reopening combined with a broad-based turnaround in other regions,” it said.
Additionally, aircraft supply may be tighter as a large proportion of stored aircraft may not return to service and protracted production challenges intensify the shortage, DBS said.
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