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Aircraft Leasing Industry Does Not Prioritize Sustainable Aviation

Aircraft Leasing Industry Does Not Prioritize Sustainable Aviation
Sustainability Remains a Low Priority Among Executives
A recent report from Deloitte Ireland reveals that sustainability is not a primary focus for most executives in Ireland’s aircraft leasing sector. The 2026 Aviation Finance Leaders Survey, which collected insights from senior industry leaders, indicates that zero and low-emission aircraft are largely absent from current strategic priorities despite increasing global demands for greener aviation solutions.
Ireland holds a dominant position in the global aircraft leasing market, with 19 of the world’s top 20 lessors based in the country and Irish firms managing approximately 60% of the leased fleet worldwide. Nevertheless, the survey found that only 55% of executives have incorporated zero or low-emission aircraft into their strategies. Among these, a mere 5% expect to deploy such aircraft within the next five years, while 36% anticipate this transition may take a decade or longer. Although half of the respondents are tracking developments in sustainable aviation fuel (SAF) and low- or zero-emission aircraft, they currently lack concrete investment plans.
Industry Challenges and Limited Investment in Sustainable Technologies
The report further highlights a surprising disconnect between the industry’s awareness of environmental regulations and its response. None of the surveyed executives identified environmental compliance or sustainability mandates as significant challenges. Investment intentions in SAF or helicopter-related sustainable opportunities remain low, with only 9% planning to allocate resources over the next three years. This cautious stance persists despite widespread expectations of increased airline defaults and restructurings in the coming two years, driven by volatile fuel prices, geopolitical instability, and fragile airline financials.
Ron Doyle, a Deloitte partner with nearly two decades of experience advising the sector, acknowledged the Irish government’s Sustainable Aviation Fuel Policy Roadmap as a positive development but stressed the need for enhanced support to stimulate SAF production and adoption. Doyle emphasized that further incentives for SAF training and education, some of which are already emerging in Irish universities and leasing firms, could accelerate progress. He also pointed to the potential impact of more accessible research and development tax credits in encouraging investment in SAF technologies. Doyle noted that the current fuel crisis underscores the growing importance of alternative fuels, despite the immature supply chains and challenging economics surrounding SAF.
Risks and Outlook for the Leasing Sector
The industry’s slow advancement on sustainability issues exposes it to multiple risks. Increasing regulatory pressure to reduce carbon emissions could lead to financial penalties for non-compliance, while reputational damage may arise if the sector is perceived as lagging in climate action. Investor preferences are shifting toward companies with robust sustainability credentials, potentially increasing capital costs for leasing firms that fail to adapt. At the same time, competitors investing in sustainable technologies may secure a competitive edge.
Despite these challenges, the survey found that 68% of executives are more optimistic about their company’s financial outlook compared to the previous year, with 27% expressing slight pessimism. David McCaffrey, head of aviation finance and leasing services at Deloitte Ireland, highlighted the sector’s resilience amid external shocks such as the Covid-19 pandemic, supply chain disruptions, and geopolitical crises. However, the report suggests that resilience alone may not suffice as the industry confronts mounting pressure to embrace sustainable aviation practices.

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