How Big Data Is Influencing Airline Fares

Manila Postpones Turboprop Transfer to Clark Airport Until Late First Quarter 2026 Delay in Transition of Turboprop Operations The Manila Slot Coordination Committee (MSCC) has announced a postponement in the transfer of turboprop aircraft operations from Manila’s Ninoy Aquino International Airport (NAIA) to Clark International Airport in Angeles City. Initially scheduled for completion by October 2025, the deadline has now been extended to March 2026. This decision, reported by the Manila Bulletin, reflects the committee’s recognition of the complexities involved in the transition process. The MSCC, comprising government officials and representatives from the airport operator, cited the necessity for additional time to effectively manage logistical and informational challenges. Concerns over Clark Airport’s infrastructure readiness, the operational adjustments required by airlines, and the potential for service disruptions during the transfer period have all contributed to the delay. The committee aims to ensure a smooth and gradual phase-out of turboprop flights from Manila’s congested main gateway. Operational Adjustments and Industry Response To facilitate the transition, the MSCC will impose limits on turboprop operations during the Winter 2025/2026 season, capping departures at 42 weekly flights with a maximum of six daily. Philippine Airlines, through its PAL Express subsidiary operating DHC-8-Q400 aircraft, and Cebu Pacific Air’s Cebgo unit, which flies ATR72-600 turboprops, are expected to share these slots equally, each receiving 21 weekly departures. The government initiated the phase-out of turboprop flights from NAIA in March 2025, but the move has faced criticism from industry stakeholders and politicians alike. Concerns have been raised regarding the impact on connectivity to secondary and tertiary cities, as well as Clark Airport’s capacity to accommodate increased turboprop traffic. The extension is intended to provide airlines and authorities with additional time to address these issues, although market reactions suggest persistent apprehension about the implications for local aviation logistics and passenger services. The postponement may prompt competitors to revise their operational strategies or leverage the extended timeline to enhance their service offerings. This evolving situation is expected to influence route planning and resource allocation across the Philippine aviation sector. Current Turboprop Operations and Future Plans According to ch-aviation data, Cebgo currently operates 59 weekly turboprop departures to four destinations from Manila and 38 weekly departures to seven destinations from Clark. PAL Express runs 59 weekly departures to seven destinations from Manila and 17 weekly flights to three destinations from Clark. Additionally, AirSWIFT, a subsidiary of Cebu Pacific Air, operates 42 weekly ATR turboprop flights from Manila to El Nido, while Sunlight Air offers daily ATR flights between Manila and Cebu. Philippine Airlines has indicated that it will announce its winter season network plans once the new deadline is formally confirmed. Cebu Pacific Air has not yet provided a comment regarding the revised timeline. Stakeholders are advised to monitor official announcements from relevant authorities for the most current and detailed information as the situation continues to develop.

Daedalean Advances Certification of Machine Learning Avionics for eVTOLs As artificial intelligence (AI) continues to transform various industries, its integration into aviation safety systems is gaining momentum, promising significant advancements from predictive maintenance to fully autonomous flight. Both established original equipment manufacturers (OEMs) and innovative startups are investing heavily in AI-driven solutions. Among these, Zürich-based Daedalean has emerged as a prominent player. Founded in 2016 and operating from Zürich, Phoenix, and Riga, Daedalean specializes in AI-based vision and object recognition systems designed for safety-critical aviation functions. These include the detection of uncooperative airborne threats, wire detection, GNSS-independent positioning, and landing guidance. Strategic Developments and Leadership Reflecting the increasing strategic importance of AI in aerospace, Daedalean was recently acquired by Destinus, a European developer of civil and defense flight technologies. The acquisition, expected to be finalized by the end of 2025, aligns with Destinus’ objective to expand its AI capabilities for unmanned systems across both civil and military markets. In September 2024, Daedalean appointed Bas Gouverneur as its new CEO to spearhead the company’s commercial strategy. Gouverneur brings extensive industry experience, having previously served as chief technology officer at Swiss aerospace and defense leader RUAG and as head of design organization at SR Technics Group. At the 2025 International Paris Airshow, Gouverneur outlined Daedalean’s roadmap and emphasized how the company’s technology aims to enhance aviation safety, particularly within the rapidly expanding electric vertical takeoff and landing (eVTOL) sector. Certification and Regulatory Challenges A primary challenge confronting Daedalean and the broader aviation industry is the certification of machine learning (ML) and artificial vision systems. Gouverneur described this as “the big unsolved debate in aviation.” However, Daedalean has developed a certification methodology in collaboration with both the European Union Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA). While ML and artificial vision technologies are becoming more familiar, ensuring their consistent and predictable behavior to meet stringent safety and performance standards remains a significant hurdle. Daedalean’s approach centers on collecting extensive volumes of high-quality data to train its systems across a wide range of scenarios. The company has segmented the globe into various regions and is actively conducting flight tests with aircraft and helicopters throughout Europe and the United States. These tests cover diverse environments, from deserts to mountainous terrain, to ensure robust system performance. System Integration and Market Dynamics All computational processing for Daedalean’s avionics occurs onboard the aircraft. The company collects datasets to train its algorithms, validates them with separate datasets, and subsequently “locks” the algorithm before deployment. This process ensures that the system does not learn or modify itself during flight, addressing regulatory concerns regarding unpredictable behavior. As Daedalean progresses toward certification, it faces additional challenges, including adapting to evolving regulatory standards from both the FAA and EASA. The company also contends with competition from other avionics developers racing to introduce similar AI-enabled technologies. The industry is closely monitoring these developments, with eVTOL manufacturers expressing growing interest in advanced AI solutions, albeit with some reservations about integration complexity and associated costs. Meanwhile, competitors are expected to accelerate their development efforts or seek strategic partnerships to strengthen their market positions. With regulatory frameworks beginning to take shape and industry interest intensifying, Daedalean’s advancements represent a significant step toward safer, AI-enabled flight for the next generation of aircraft.

Avelo Plans Fleet Expansion Despite West Coast Withdrawal Strategic Shift and Fleet Growth Avelo Airlines is advancing its fleet expansion plans despite its recent decision to exit the West Coast market and close its Burbank base. The carrier currently operates a mixed fleet of eight Boeing 737-700s and fourteen 737-800s, leased from nine different lessors. While no definitive agreements have been finalized, Avelo confirmed it is actively engaging with several lessors and companies to acquire additional aircraft, underscoring its commitment to growth amid evolving market conditions. Closure of Burbank Base and Market Realignment The closure of the Burbank base, effective December 2, is a response to declining domestic leisure travel demand and fare reductions that have adversely affected financial performance at the airport. Avelo attributed the decision to “troubling financial results” and announced a strategic pivot toward expanding its operations on the US East Coast. The airline identified the East Coast as offering “significantly more opportunity to continue our path to sustainable cash flow generation,” signaling a realignment of its business focus in pursuit of long-term viability. Competitive Responses and Market Dynamics Avelo’s withdrawal from Burbank has triggered immediate competitive responses. Breeze Airways plans to introduce four new routes from the airport, while Alaska Airlines will launch year-round, daily services connecting Burbank with Eugene, Redmond/Bend, and Pasco. These initiatives aim to capture the market share vacated by Avelo and highlight the intensifying competition within the region’s domestic airline sector. Ongoing Expansion Amid Controversy Despite facing criticism over its involvement in deportation flights for the US Department of Homeland Security, Avelo continues to pursue expansion. The airline maintains operational bases in Concord, North Carolina; Hartford Bradley; Lakeland; New Haven; Orlando International; Raleigh/Durham; Santa Rosa, California; and Wilmington New Castle. By consolidating its presence on the East Coast, Avelo is positioning itself for sustainable growth as the domestic airline market undergoes significant shifts.

FAA Issues Rule Permitting Drones to Operate Beyond Visual Line of Sight The Federal Aviation Administration (FAA) has announced a landmark regulatory change permitting commercial drones to operate beyond the visual line of sight of their operators. Transportation Secretary Sean Duffy unveiled the new rule on Tuesday, describing it as a pivotal step toward advancing American leadership in drone technology. The FAA’s comprehensive 731-page document outlines the Beyond Visual Line of Sight (BVLOS) rule, which aims to dismantle longstanding regulatory barriers that have constrained the commercial use of drones. Expanding Operational Capabilities for Commercial Drones Under the new regulation, drones weighing up to 1,320 pounds will be allowed to fly below 400 feet above ground level without the operator maintaining direct visual contact. This marks a significant departure from current requirements, which mandate that operators keep drones within their line of sight or obtain waivers to fly otherwise. To date, the FAA has issued 657 such waivers, including to major companies like Amazon, which employs drones for delivery services. Secretary Duffy criticized the waiver process as overly burdensome and emphasized that the new rule will transform how drone operations are approved, enabling innovators and businesses to expand their use of drone technology across various sectors. The rule is expected to have a profound impact on industries such as manufacturing, agriculture, energy, filmmaking, and medical delivery. Duffy highlighted the necessity of the regulation for these sectors to operate more efficiently and effectively, stating, “Industry needs this rule to ensure they can use this technology to do business more efficiently and effectively.” Safety, Security, and Industry Response To address safety concerns, the rule requires drones to be equipped with collision avoidance technology. Additionally, the FAA will collaborate with the Transportation Security Administration (TSA) to ensure that operations supervisors and flight coordinators undergo thorough vetting, thereby mitigating security risks associated with expanded drone operations. While the rule is anticipated to foster innovation and enhance operational efficiency, it also raises concerns related to regulatory compliance, safety, and privacy. Agricultural and delivery sectors have welcomed the expanded capabilities, anticipating increased productivity and the emergence of new business models. Conversely, general aviation groups and privacy advocates have expressed apprehension about the potential risks posed by increased drone traffic and surveillance. The regulatory shift is expected to accelerate technological advancements as companies strive to meet BVLOS requirements and capitalize on new market opportunities. Providers of drone technology are likely to experience heightened demand for solutions that address safety and compliance challenges. Regulatory Development and Next Steps The BVLOS rule has been in development for over five years, with President Donald Trump playing a key role in its advancement. In June, Trump signed an executive order directing the FAA to proceed with the rule’s implementation. Secretary Duffy acknowledged the President’s leadership in facilitating innovation while maintaining safety standards, stating, “I’m grateful for the President’s leadership. He has been remarkable in clearing the way for innovation while maintaining our safety mission.” Before the rule can be enacted, it will undergo a 60-day public comment period, allowing stakeholders and the public to provide feedback on the proposed regulatory framework.

IndiGo Commences Construction of New MRO Facility in Bengaluru IndiGo, India’s largest domestic airline, has initiated the construction of a significant maintenance, repair, and overhaul (MRO) facility at Kempegowda International Airport in Bengaluru. The groundbreaking ceremony, held on Tuesday, was attended by prominent figures including Karnataka’s Commissioner for Industries Gunjan Krishna, IndiGo CEO Pieter Elbers, and Bangalore International Airport Ltd (BIAL) CEO Hari Marar. Expanding Maintenance Capabilities The new MRO facility will occupy 31 acres and is designed to include up to 12 bays capable of servicing both narrow-body and wide-body aircraft. Scheduled to be fully operational by 2028, this Bengaluru site will be three times larger than IndiGo’s existing MRO centers in Delhi and Nagpur combined. Headquartered in Gurugram, IndiGo currently operates these two facilities but anticipates that the new establishment will significantly enhance its maintenance capacity. Pieter Elbers emphasized the strategic importance of the project, stating, “This project strengthens our operational presence in Bengaluru, one of our largest bases with over 200 daily flights. It is also a significant step towards shaping the future of Indian aviation by developing a holistic aviation ecosystem in the nation.” The airline formalized its land allocation for the facility through a memorandum of understanding with BIAL in May. The new MRO is expected to generate employment for over a thousand engineers, technicians, and other professionals, thereby contributing to local job creation and bolstering Karnataka’s aerospace and defense ecosystem. Operational and Market Implications IndiGo’s expansion comes amid a nationwide shortage of technical labor, a challenge underscored by the Directorate General of Civil Aviation’s (DGCA) ongoing recruitment efforts. The scarcity of skilled personnel may present obstacles not only for IndiGo but also for other players in the aviation sector as demand for qualified engineers and technicians intensifies. The facility is projected to deliver substantial operational benefits, including enhanced aircraft availability, improved cost efficiencies, and reduced turnaround times. These advantages are particularly critical as IndiGo continues to grow its fleet, which now exceeds 400 aircraft, and expands its long-haul route network. This development also has broader market implications. IndiGo’s expansion could heighten competition with both domestic and international carriers such as Air India, British Airways, and Virgin Atlantic, which may respond by upgrading their own maintenance capabilities or seeking to increase market share, especially on European routes. Additionally, the anticipated rise in Boeing deliveries to Akasa Air could further intensify competition, although IndiGo’s dominant market position remains a significant advantage. IndiGo’s investment in the Bengaluru MRO facility highlights its commitment to reinforcing its operational infrastructure and supporting the growth of India’s aviation industry, even as the sector contends with workforce shortages and increasing competitive pressures.

Destinus Acquires Daedalean to Enhance AI Flight Technology Destinus Group BV, a European leader in advanced flight systems, has entered into a binding agreement to acquire Zurich-based Daedalean AG for CHF 180 million (approximately USD 225 million). The transaction, involving a combination of cash and stock, is anticipated to close by the end of 2025. This acquisition will integrate Daedalean’s AI-driven aviation technology and expert team into the Destinus ecosystem, marking a significant step forward in the development of intelligent unmanned aerial vehicles (UAVs). Strategic Integration of AI Expertise Founded in 2016, Daedalean is renowned for its certifiable AI software that supports AI-assisted piloting, environmental awareness, and navigation in GPS-denied environments. The acquisition is designed to accelerate Destinus’s efforts in creating next-generation UAVs for both civil and defense sectors. Tim Moser, Co-founder and CTO of Destinus, emphasized that the deal strengthens the company’s technological position by incorporating world-class AI expertise and deep-learning specialists. He noted that integrating Daedalean’s innovative solutions and team will expedite the development, certification, and deployment of intelligent UAV systems tailored for defense and commercial markets. Bas Gouverneur, CEO of Daedalean, described the acquisition as a natural progression following their successful collaboration. He highlighted that the combined entity will bring AI-driven autonomy, swarm intelligence, and advanced decision-making tools to market more rapidly, enhancing flight safety, resilience, and operational flexibility. Workforce and Technological Synergies The integration will involve over 150 Daedalean employees, including 13 PhDs with specialized knowledge in AI, machine learning, and avionics, joining Destinus. Their expertise is expected to significantly improve decision-making tools for drone operators and autonomous systems, particularly in complex or high-stakes missions. This move aligns with Daedalean’s recent strategic pivot towards defense autonomy, reflecting a broader industry trend in 2025 characterized by increased investment and consolidation within the drone and uncrewed systems sector. This trend is driven by rising global defense expenditures and evolving regulatory frameworks. Challenges and Market Implications Despite the promising outlook, the acquisition presents integration challenges. Harmonizing the two companies’ technologies and ensuring a seamless transition for Daedalean’s workforce will be critical to unlocking the full potential of the deal. Market reactions may include a short-term decline in Destinus’s stock price due to acquisition-related costs, although a recovery is plausible if investors recognize the long-term value of enhanced AI flight capabilities. Competitors are expected to respond with increased research and development investments or strategic partnerships to maintain technological parity. Historical data from comparable acquisitions in other technology sectors, such as real estate, indicate mixed market responses, with some companies experiencing growth post-acquisition. Destinus and Daedalean’s prior collaboration is anticipated to facilitate a smoother integration process. Destinus contributes aerospace manufacturing expertise, while Daedalean brings advanced AI and software development capabilities. Together, they aim to shorten time-to-market for new products, accelerate innovation, and bolster global competitiveness. The combined efforts are set to deliver UAV systems with enhanced autonomy, flexibility, and safety—attributes increasingly vital in both commercial and military aviation. Rothschild & Co is acting as financial advisor to Destinus, with legal counsel provided by Hogan Lovells (Amsterdam) and Walder Wyss.

Newer Aircraft Experience Longer Turnaround Times Airlines generate revenue primarily when their aircraft are airborne, making the minimization of ground time—known as turnaround time—a critical factor in profitability. This principle has been especially vital for ultra-low-cost carriers, which have historically emphasized rapid turnarounds to maximize aircraft utilization and increase daily flight frequencies. Originating with Northeast shuttle services and later embraced by Southwest and other budget airlines, this operational strategy has long been a cornerstone of efficient airline management. Emerging Trends in Turnaround Efficiency Contrary to expectations, recent data indicates that the latest generation of narrow-body aircraft, including the Airbus A320neo and Boeing 737 MAX, are experiencing longer turnaround times compared to their predecessors, the A320ceo and 737NG. An analysis of ADS-B data from 2024, encompassing over 1.3 million flights over an eight-day span, reveals that these newer models consistently spend more time on the ground between flights, even when operated by the same carriers under comparable conditions. This finding appears counterintuitive, as newer aircraft are generally anticipated to enhance operational efficiency, including faster turnarounds. Operational assessments confirm that most ground procedures remain largely unchanged between the older and newer models, which share common type ratings and similar workflows. The Role of Advanced Engine Technology The primary factor contributing to increased turnaround times lies in the engines powering these new aircraft. The latest models are equipped with advanced powerplants—Pratt & Whitney’s Geared Turbofan (GTF) and CFM International’s LEAP engines—that operate at higher core temperatures than their predecessors. To ensure safety and maintain reliability, manufacturers recommend extended engine cool-down and warm-up periods. These engines, being larger and heavier, necessitate additional ground time to manage thermal cycles effectively, thereby offsetting some of the efficiency gains achieved through their advanced design. Implications for Airline Operations and the Aviation Market This development carries significant implications for airline operations and the broader aviation market. Increased turnaround times can elevate operational costs by reducing fleet utilization, potentially encouraging airlines to retain older aircraft in service longer to uphold schedule reliability. Some carriers may shift demand toward older models or explore alternative maintenance strategies to mitigate the impact of these delays. The industry is already responding to these challenges. Persistent delivery delays for new aircraft have compelled airlines to extend the operational lifespan of existing fleets, thereby boosting demand for aftermarket maintenance services. Reflecting this trend, GE Aerospace recently revised its 2025 profit forecast upward, attributing the increase to heightened maintenance demand as airlines maintain older jets for longer periods. While the new engine technologies offer substantial fuel savings—estimated at 15 to 16 percent—the trade-off is a modest increase in turnaround time. For airlines, the economic advantages of improved fuel efficiency may outweigh the operational drawbacks, yet the industry is clearly adjusting to a new operational paradigm in which the latest aircraft are not necessarily the fastest to turn.

US-EU Trade Deal Excludes Tariffs on Aviation Industry In late July, the United States and the European Union finalized a pivotal trade agreement that notably excludes the aviation industry from new tariffs. Announced on July 27 by U.S. President Donald Trump and European Commission President Ursula von der Leyen, the accord guarantees that aircraft and aircraft parts traded between the two economic powers will remain tariff-free. This exemption offers crucial relief to manufacturers and airlines on both sides of the Atlantic, preserving the stability of a sector integral to transatlantic commerce. Industry Response and Economic Implications The aviation sector welcomed the agreement with broad approval. James Viola, President and CEO of the General Aviation Manufacturers Association, alongside Ed Bolen, President and CEO of the National Business Aviation Association, commended the decision to protect the aviation supply chain from tariff impositions. Major industry players such as Airlines for America and Delta Air Lines expressed optimism that the deal would help stabilize operational costs and foster growth within the sector. Prior to the agreement, concerns had mounted over the potential impact of a proposed 15% tariff on European imports to the U.S., which threatened to increase production costs and disrupt the complex supply chains underpinning aircraft manufacturing and airline operations. By averting these tariffs, the deal aligns with longstanding international efforts to maintain a tariff-free environment for civil aviation products. This approach mirrors existing arrangements, such as the Agreement on Trade in Civil Aircraft, under which Brazilian aerospace company Embraer has benefited from zero tariffs since 1980 and is currently negotiating to preserve this status. Broader Trade Provisions and Strategic Significance Beyond the aviation sector, the U.S.-EU trade agreement encompasses wider economic commitments. The European Union has pledged to invest $600 billion in the United States, while most European imports will now be subject to a 15% tariff. However, certain categories—including natural resources, specific chemicals, and agricultural products—will continue to enjoy zero tariffs. The timing of the agreement was critical, concluding just before August 1, when the Trump administration implemented tariffs on numerous countries, marking what was termed “Liberation Day.” These tariffs represent increases of up to 50% on some goods entering the U.S. market. European Commission President Ursula von der Leyen underscored the magnitude of the deal, emphasizing the economic weight of the partnership: “This is a deal between the two largest economies in the world. We trade USD 1.7 trillion per year. Together, we are a market of 800 million people. And we are nearly 44% of global GDP.” By excluding the aviation industry from new tariffs, the U.S.-EU trade deal is poised to deliver substantial benefits to airlines and manufacturers alike, ensuring continued stability and growth in a sector vital to both economies.

Egyptian Ambassador to Oman Launches Legal Encyclopedia on Aircraft Leasing Strengthening Bilateral Ties Through Intellectual Collaboration In a significant demonstration of the enduring cultural and scientific partnership between Egypt and Oman, the Egyptian Embassy in Muscat hosted the launch of a pioneering legal encyclopedia titled *Aircraft Leasing Encyclopedia: Between Practice and Law*. The event, held under the patronage of His Excellency Ambassador Khaled Radi, Egypt’s Ambassador to Oman, attracted a distinguished audience comprising diplomats, government officials, and legal experts. The occasion underscored Egypt’s sustained intellectual influence within the region and highlighted the close ties shared by the two nations. Ambassador Radi expressed his pride in the publication, emphasizing its importance to the aviation sector and its authorship by a prominent member of the Egyptian community residing in Oman. He remarked on the diversity and accomplishments of Egyptians in Oman, noting that their strong sense of belonging further cements the bilateral relationship. The ambassador described the encyclopedia as a highly specialized work that addresses a critical area of aviation law, reflecting the depth of expertise within the Egyptian expatriate community. A Comprehensive Legal Resource for the Aviation Industry The encyclopedia was authored by Counsellor Hussam El Hadidy, a respected legal expert with over thirty years of experience in aviation law. El Hadidy, who holds a diploma in air law from the International Air Transport Association (IATA) in the United Kingdom, has long been recognized for his contributions to the field, including his earlier work, *Aviation Contracts Encyclopedia*. His latest publication fills a notable gap by providing an exhaustive legal reference on aircraft leasing, combining practical insights with detailed analysis of contracts and regulatory frameworks. *Aircraft Leasing Encyclopedia: Between Practice and Law* is designed to serve as an essential resource for legal practitioners and aviation companies across Egypt, Oman, and the broader Arab world. It addresses the complex legal challenges inherent in aircraft leasing, offering guidance that spans multiple jurisdictions and regulatory environments. The work is expected to enhance legal scholarship and support the aviation industry’s growth in the region. Navigating Challenges and Market Reception The launch of the encyclopedia comes amid the complexities of international aviation regulations, which require careful navigation to ensure the publication’s relevance and compliance across diverse legal systems. The author and publishers face the challenge of addressing varying regulatory frameworks while competing with established legal information providers. Additionally, regulatory authorities are likely to scrutinize the encyclopedia to verify its adherence to international aviation laws and standards. Despite these hurdles, the response from the legal and aviation communities has been overwhelmingly positive. Industry stakeholders have expressed strong interest in the new resource, anticipating that it will stimulate further innovation and improvement among competitors in the field of aviation law. The publication is poised to contribute significantly to the advancement of legal expertise and professional practice in the region. Ambassador Radi concluded the event by reaffirming the robust and evolving nature of Egyptian-Omani relations. He described the partnership as entering a new phase of strategic collaboration and growth under the leadership of President Abdel Fattah El-Sisi and His Majesty Sultan Haitham bin Tarik. The launch of this legal encyclopedia stands as a testament to the shared commitment to excellence and cooperation between the two countries.

Wide-Body Aircraft Values Rise as Long-Haul Market Recovers Market Recovery and Value Trends Market values for new-generation wide-body aircraft have increased by an average of 11.6% since 2021, according to aviation intelligence firm IBA. This rise marks a significant rebound following an 8.6% decline in values compared to 2019, driven by the pandemic’s impact on long-haul travel. Currently, most wide-body models—including the Airbus A350-900, A350-1000, and Boeing 787-9—exhibit market value-to-base value ratios at or above 100%. This reflects strong trading activity, ongoing fleet renewal efforts, and persistent supply constraints within the sector. Hashen Hewawasam, IBA’s Head of Commercial Aircraft Valuation, attributes the accelerated recovery since early 2023 to the resurgence of international travel and increased premium leisure traffic. The expansion of long-haul capacity, combined with production bottlenecks at original equipment manufacturers (OEMs) and delivery schedules extending into the 2030s, has created a seller’s market for wide-body aircraft. Model-Specific Developments and Market Dynamics The Boeing 787-9 remains the most sought-after wide-body model, with market values now exceeding base values across all age groups. The 787-10 has also rebounded to base value levels, particularly among new production units. Meanwhile, the 787-8 has experienced the fastest market value gains despite limited new deliveries, although it still lags slightly behind base value. The Airbus A350-1000 has benefited from delays to Boeing’s 777X program, attracting significant orders and supporting value growth alongside the A350-900. Additionally, the A330-900 is gaining traction in the secondary market as an attractive replacement for the older A330ceo. The sale-and-leaseback (SLB) market has played a notable role in driving value growth, as airlines seek capital and new lessor entrants offer competitive pricing and lease rates. IBA anticipates that values for new-generation wide-bodies will continue to rise, supported by inflationary pressures, OEM price escalations, and the ongoing recovery in long-haul travel demand. Although growth is expected to lag behind that of narrow-body aircraft due to lower production and trading volumes, the outlook for wide-body values remains robust. Emerging Challenges and Industry Outlook The resurgence of the business aviation sector is introducing new competitive dynamics. JetLoan Capital’s $110 million in financing during the second and early third quarters of 2025 underscores increasing competition for capital and market attention as demand for long-haul travel recovers. This trend may encourage wide-body manufacturers to increase production or pursue strategic partnerships, similar to Bombardier’s recent expansion efforts in South America. Market sentiment remains positive, with sustained transaction momentum anticipated throughout the year. However, regulatory and operational challenges persist, particularly as airports such as Los Angeles International intensify noise reduction initiatives. These factors, alongside evolving airline strategies and shifting capital flows, are shaping a complex environment for wide-body aircraft values as the industry continues to adapt to post-pandemic realities.