What Happened
Soaring Expenses Overtake Aircraft Shortages As Top Concern
Jet financiers are growing increasingly concerned about soaring fuel and borrowing costs, which have overtaken aircraft shortages as the biggest challenge facing the industry. Delegates at a major industry meeting said that recent market turmoil, including airBaltic’s bankruptcy filing and a surge in oil prices, has reinforced this change in sentiment. The cost of borrowing is critical for aircraft lessors, which control about half of the global airline fleet and rely heavily on debt financing. This was reported by Reuters.