SMBC Aviation Capital has released its Plane Insights Q1 2026 report highlighted another robust year for global aviation despite macro-economic headwinds.
Aircraft demand outstripped supply with the trading market strengthening and diverse financing sources flowing into the sector. OEM performance improved particularly Boeing meeting production KPIs while Airbus delivered strong volumes despite emerging issues.
Aircraft storage rates especially for widebodies trended downward reflecting full utilisation mode with elevated lease extensions and re-lease rates indicating limited secondary market availability. Jet-fuel costs declined through 2025 with further reductions forecast into 2026 offering relief to airlines facing labour and maintenance inflation. Advanced economies expect growth below 2pc in 2026 while developing regions exceed 4pc driven by expanding middle classes and urbanisation.
The report noted divergence between macro sentiment and aviation’s operational strength with solid traffic widebody utilisation improvements and investor preference for aviation assets. Long-term fleet outlook points to continued growth from population expansion urbanisation middle-class growth and demand for business leisure and VFR travel. SMBC emphasised aviation’s structural strength and resilience.
SMBC Aviation Capital shared in a written statement Aircraft Demand Remains Higher Than Supply. The aviation sector that continues to defy wider macro-economic headwinds, driven by persistent aircraft demand, constrained supply, and expanding global travel markets..
Improvements in OEM performance, particularly Boeing, which has met key production KPIs and begun ramping up output with better manufacturing quality. Storage and Lease Rates Point to a Tight Secondary Market. Fuel Prices Ease, Offering Relief to Airlines. Slower Growth in Advanced Economies, Faster in Developing Regions.
The result, is a structurally strong demand environment that will support global fleet growth well into the next decade. Despite economic unpredictability, commercial aviation remains in a position of strength. Aircraft supply constraints, improving OEM output, and accelerating travel demand are creating a highly favourable environment for lessors, airlines, and investors alike.
