Global aircraft leasing firm Avolon orders 40 Boeing 737 Max jets

Global aircraft leasing firm Avolon has committed to purchasing 40 Boeing 737 MAX planes worth over $4 billion at current list prices, providing a boost for the U.S. plane maker, which is currently grappling with delivery issues.

The new aircraft are scheduled for delivery between 2027 and 2030 and will increase the size of Avolon’s owned, managed, and committed fleet to 870 planes. This deal follows Boeing’s announcement that it plans to increase production of 737 MAX jets in the second half of the year to make up for a slowdown during the second quarter due to manufacturing issues.

Avolon CEO Andy Cronin expressed confidence in the MAX program and Boeing’s ability to deliver these aircraft despite the issues.

Prior to this deal, Airbus’ A320neo family of jets made up 184 of the 252 planes Avolon had committed to buying. Cronin acknowledged that supply chain issues persisted across the industry, but expected these challenges to ease by the end of the year.

In the first quarter, the Dublin-based lessor delivered $599 million of lease revenue and net income of $56 million due to high levels of leasing activity amid a continued shortage of jets.