Developments in the aviation loan ABS space enhance the appeal of aircraft-backed debt as an asset class and inject further dynamism into the market.
The latest Investec Aviation Market Snapshot report Q3 2025 highlights that global air travel and trade remained stable in August 2025. Passenger traffic rose 4.6% year-on-year, driving the industry’s Passenger Load Factor to a record 86%. International travel led growth at 6.6%, with strong results from Asia Pacific (+9.8%) and Africa (+8.9%). Domestic traffic rose 1.5%, supported by Japan (+6.0%) and Brazil (+12.7%). Europe held the highest load factor at 87.9%, and Africa exceeded 80% for the first time. Flight schedules are expected to increase by 1.2% in September and 3.4% in October.
Air freight demand grew 4.1% YoY, marking six consecutive months of gains. Africa (+11.0%) and Asia Pacific (+9.8%) led growth, offsetting a decline in North America. Key trade routes—Europe-Asia (+13.0%), intra-Asia (+12.4%), and Africa–Middle East (+15.6%)—saw record volumes. Jet fuel prices dropped 6.4% YoY, though refining margins widened. Overall, the aviation sector showed stable, high utilisation, with Africa and Asia driving global momentum.
In financial markets, the U.S. Federal Reserve cut interest rates by 25bps to 4.25% in a “risk management” move. The ECB maintained stability with inflation at target levels, and the UK’s MPC held the Bank Rate at 4.00%, slowing Quantitative Tightening. CPI inflation stood at 3.8%, with no rate cuts expected for 2025. Gold prices reached record highs above $4,000/oz, while both the euro and sterling strengthened against the U.S. dollar, reflecting overall dollar weakness.
Derek Wong, Head of Aviation Debt Funds: “The developments in the aviation loan ABS space enhance the appeal of aircraft-backed debt as an asset class and inject further dynamism into the market.”
Read the full article and access the full Q3 Aviation Market Report here:
https://www.investec.com/en_gb/focus/economy/aviation-market-snapshot-q3-2025.html
