Commitments and Contingencies

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Aircraft Acquisitions

In April 2025, the Company entered into a supplemental agreement with Boeing to purchase five incremental 737-8 MAX aircraft scheduled to deliver in 2031. As of March 31, 2025, including these incremental aircraft, the Company had contractual commitments to acquire a total of 260 new aircraft from Airbus and Boeing for delivery through 2031, with an estimated aggregate commitment (including adjustments for anticipated inflation) of $16.6 billion. The following table shows the Company’s contractual delivery commitment schedule as of March 31, 2025:


	Estimated Delivery Years
Aircraft Type	Last 9 months of 2025	2026	2027	2028	2029	Thereafter	Total
Airbus A220-100/300	10	6	12	12	2	—	42
Airbus A320/321neo(1)	5	20	38	34	34	—	131
Airbus A330-900neo	—	1	—	—	—	—	1

Airbus A350F	—	—	—	2	4	1	7
Boeing 737-8/9 MAX	18	20	21	2	—	5	66
Boeing 787-9/10	7	5	1	—	—	—	13
Total(2)	40	52	72	50	40	6	260


(1) The Company’s Airbus A320/321neo aircraft orders include seven long-range variants and 49 extra long-range variants.
(2) The table above reflects aircraft deliveries based on contractual documentation and production adjustments as communicated by Airbus and Boeing through May 5, 2025. The Company’s contractual delivery commitment schedule is subject to a number of factors outside its control, including ongoing delays by Airbus and Boeing for some aircraft, and the Company cannot guarantee delivery of any particular aircraft at any specific time notwithstanding its contractual delivery commitment schedule.

The table above is subject to change based on Airbus and Boeing delivery delays. As noted below, the Company expects delivery delays for most of the aircraft in its orderbook. The Company remains in discussions with Airbus and Boeing to determine the extent and duration of delivery delays; however, the Company is not yet able to determine the full impact of these delays.

Pursuant to its purchase agreements with Airbus and Boeing, the Company agrees to contractual delivery dates for each aircraft ordered. These dates can change for a variety of reasons, however for the last several years, manufacturing delays have significantly impacted the planned purchases of the Company’s aircraft on order with both Airbus and Boeing.

The FAA has continued to enforce a cap on Boeing’s 737 MAX production until quality control issues are resolved. The Company expects its Boeing deliveries will continue to be delayed and is unable to estimate the duration of delays or the impact on its Boeing orderbook. In addition, Airbus has recently informed the Company that there will be meaningful additional production delays of approximately one year, affecting primarily A320/321neo aircraft deliveries. The broader aviation supply chain remains highly constrained, impacting production capacity for both Airbus and Boeing.

The aircraft purchase commitments discussed above could also be impacted by cancellations. The Company’s purchase agreements with Airbus and Boeing generally provide each of the Company and the manufacturers with cancellation rights for delivery delays starting at one year after the original contractual delivery date, regardless of cause. In addition, the Company’s lease agreements generally provide each of the Company and the lessee with cancellation rights related to certain aircraft delivery delays that typically parallel the cancellation rights in the Company’s purchase agreements.

As a result of continued manufacturing delays and supply chain constraints described herein, the Company’s aircraft delivery schedule could continue to be subject to material changes and delivery delays are expected to extend for at least the next three to four years.

In April 2025, the U.S. imposed a 10% baseline tariff on all countries and individualized higher tariffs on nations with which the U.S. assesses that it has the largest trade deficits, while retaliatory tariffs by other countries, such as China and Canada, have been imposed on U.S. products and goods. As of the date of this filing, such higher tariffs imposed by the U.S. are paused until July 2025, with the exception of higher tariffs on China. Generally, Airbus aircraft manufactured outside of the U.S. and delivered to customers in the U.S. and Boeing aircraft manufactured in the U.S. and delivered to customers in other countries are subject to tariffs. As of the date of this filing, the Company has no aircraft from its orderbook that are expected to be subject to current tariffs. As of March 31, 2025, approximately 2.2% of the Company’s aircraft by net book value are on lease to lessees located in China, and the Company does not have any scheduled future aircraft deliveries to Chinese airline customers.

The Company’s leases are primarily structured as triple net leases, whereby the lessee is responsible for all operating costs including the costs associated with the importation of aircraft. The Company’s lessees are generally obligated to pay such tariffs to customs authorities. If lessees are unwilling or unable to assume such costs, it could have an adverse impact on demand for commercial aircraft or result in lease cancellations for those customers whose aircraft delivery has been delayed by over one year and who hold lease cancellation rights.

Commitments for the acquisition of these aircraft, calculated at an estimated aggregate commitment (including adjustments for anticipated inflation) of approximately $16.6 billion as of March 31, 2025, are as follows:


Years ending December 31,	(in thousands)
2025 (excluding the three months ended March 31, 2025)	$	2,960,620
2026	3,513,804
2027	4,155,363
2028	2,945,657
2029	2,493,019
Thereafter	484,365
Total	$	16,552,828

The Company has made non-refundable deposits on flight equipment purchases of $771.9 million and $761.4 million as of March 31, 2025 and December 31, 2024, respectively, which are subject to manufacturer performance commitments. If the Company is unable to satisfy its purchase commitments, the Company may be forced to forfeit its deposits and may also be exposed to breach of contract claims by its lessees as well as the manufacturers.