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Dubai Aerospace Enterprise Reports Third Quarter 2025 Results

Dubai Aerospace Enterprise Reports Third Quarter 2025 Results
Financial Performance and Growth
Dubai Aerospace Enterprise (DAE) has reported strong financial results for the nine months ending September 30, 2025, demonstrating significant growth and ongoing investment in its aircraft fleet. The company’s total revenue rose to US$1,277.7 million, representing a 25.6% increase compared to US$1,017.1 million in the same period last year. This growth was primarily driven by higher lease revenue from newly acquired aircraft and increased maintenance income. Profit for the period surged by 82.3% to US$566.7 million, up from US$310.8 million a year earlier. This improvement reflected enhanced operating profit and insurance recoveries, although it was partially offset by increased finance costs and tax expenses.
Operating profit before exceptional items reached US$686.1 million, a 34.0% rise from US$512.1 million, supported by revenue growth and gains from aircraft disposals. Total assets expanded to US$16,359.1 million as of September 30, 2025, compared to US$13,033.3 million at the end of 2024, largely due to fleet expansion. Available liquidity stood at US$3,439.3 million, slightly down from US$3,785.6 million at year-end 2024, with a liquidity coverage ratio of 227%, down from 274%. The net debt-to-equity ratio increased to 2.60:1 from 2.42:1, reflecting higher leverage following recent aircraft acquisitions.
Operational Developments
As of September 30, DAE’s fleet comprised 726 aircraft, a substantial increase from 506 at the end of 2024. This included 530 owned aircraft, up from 329, alongside 113 managed aircraft and 83 committed aircraft. During the period, the company acquired 249 owned aircraft—including those from a business combination—and 14 managed aircraft, while selling 48 owned and 11 managed aircraft. The weighted average age of the owned fleet was 6.8 years for passenger aircraft and 11.2 years for freighters, compared to 7.3 and 10.5 years respectively at the end of 2024. Lease terms averaged 6.4 years for passenger aircraft and 9.1 years for freighters, reflecting the integration of newer assets. Unsecured debt accounted for 85.9% of total debt, up from 79.4%, indicating a continued preference for flexible financing arrangements.
Market Context and Competitive Landscape
Despite DAE’s robust results and strategic fleet expansion, the company operates amid intensifying competition within the aerospace leasing sector. GE Aerospace’s recent earnings have reinforced its position as a preferred choice for investors, potentially drawing attention away from other players in the market. Additionally, competitors such as Art's-Way Manufacturing Co., Inc. and Applied Industrial Technologies have announced strategic initiatives aimed at increasing market share and profitability, underscoring a more dynamic and competitive environment.
Outlook
DAE’s third quarter results underscore its strong operational performance and commitment to maintaining a young, well-leased fleet. However, with growing competition and evolving investor sentiment, the company’s capacity to sustain growth and optimize its financial position will remain under close observation in the coming quarters.

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