Willis Lease Finance has highlighted the vertical integration of materials, maintenance and other services for helping to boost the performance of its core leasing business.
In 2023 the engine-focused lessor reported a record revenue of $419 million, up 41% from 2022, while pre-tax profit rose from $10 million to $67 million.
“By sourcing parts from our materials business, Willis Lease Finance (WLFC) is able to minimize turn times in our MRO facilities and reduce the maintenance costs of our assets,” WLFC CEO Austin Willis said in a statement released March 14.
"Our asset management and consulting services significantly enhance our capability to accurately predict the timing and cost of shop visits across our entire fleet," Willis continued. "This services area also ensures the maintenance of high-integrity technical records, thereby preserving the value of our assets."
He added that the lessor’s engine repair shops in the U.S. and UK were helping to mitigate the extended turn times being suffered across the industry, while WLFC’s aircraft base maintenance facility at Teesside Airport in the UK was useful to streamline aircraft transitions between lessees, and to provide end-of-life solutions like part-outs and teardowns.
As of Dec. 31, 2023, the company’s lease portfolio was worth $2.22 billion—roughly the same as a year earlier—and consisted of 339 engines and 13 aircraft.
However, despite little movement in total asset value, the company generated 31% more lease rent revenue, at $213 million in 2023, as COVID-era concessions ran out and demand for spare engines shot up to cope with added passenger capacity, new aircraft delivery delays and new-generation engine problems.
Maintenance reserve revenue also climbed significantly, from $83 million in 2022 to $134 million in 2023.
“As we enter a new post-pandemic era, like others, WLFC is seeing a combination of adversities in the industry such as original engine manufacturer challenges, supply chain disruptions, MRO bottlenecks and skilled labor shortages—creating a significant demand for spare engine leasing,” said WLFC Executive Chairman Charles Willis.
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