Dubai Aerospace Enterprise posted record quarterly revenue for the three months to March 31, 2026, as aircraft leasing income, fleet transactions and stronger margins offset a softer performance at its engineering division caused by regional disruption and airspace closures.
The Dubai-headquartered aviation services group said revenue rose 15.1 per cent to $455.5 million from $395.9 million a year earlier, while profit before tax increased 19 per cent to $120.4 million. Net profit climbed to $102.2 million, compared with $85.8 million in the first quarter of 2025, supported by higher lease revenue, gains on aircraft disposals and disciplined balance-sheet management.
The results underline DAE’s growing weight in global aircraft leasing at a time when airlines are competing for scarce new aircraft, delivery delays persist across major manufacturers and leasing platforms are attracting more institutional capital. The company’s pre-tax profit margin improved to 26.4 per cent from 25.6 per cent, while pre-tax return on equity held at 13 per cent.
Chief Executive Officer Firoz Tarapore described the quarter as “exceptional” for the franchise, pointing to the company’s agreement to acquire 100 per cent of Macquarie AirFinance Limited for an enterprise value of about $7 billion. Once completed, the transaction will add about 350 owned and committed aircraft to DAE’s fleet and lift the combined platform above 1,000 aircraft, giving the group greater reach across airline customers and geographies.
DAE ended March with total assets of $16.34 billion, down from $16.55 billion at the end of 2025, mainly reflecting lower cash balances. Net loans and borrowings declined to $9.95 billion from $10.23 billion, while total equity increased to $3.75 billion. The net-debt-to-equity ratio improved to 2.50 times from 2.58 times, showing a modest strengthening in leverage metrics despite a busy quarter for acquisitions and fleet activity.
Available liquidity rose sharply to $4.55 billion from $3.4 billion at the end of December after the group signed new long-term unsecured revolving credit facilities worth $2.8 billion. Its liquidity coverage ratio increased to 1,089 per cent from 277 per cent, giving the company greater capacity to manage debt maturities, aircraft purchases and transaction funding requirements.
DAE’s senior unsecured debt rating was upgraded to A- by KBRA during the quarter, a development that improves the group’s standing in debt markets as aircraft lessors continue to depend on efficient access to capital. The share of unsecured debt in total debt rose to 88.5 per cent from 87.8 per cent, reinforcing the company’s shift towards a more flexible funding structure.
Operationally, DAE acquired nine owned aircraft and sold 15 aircraft, including 12 owned and three managed units. It signed 64 lease agreements, extensions and amendments, reflecting continued airline demand for capacity. The owned, managed and committed fleet stood at 663 aircraft at the end of March, comprising 489 owned, 109 managed and 65 committed aircraft.
DAE Capital’s fleet value remains around $25 billion, with exposure across Airbus, Boeing and ATR aircraft. Its owned passenger fleet had a weighted average age of 6.9 years and a weighted average remaining lease term of 6.4 years. Freighter aircraft had a weighted average age of 11.8 years and a remaining lease term of 8.6 years, providing long-dated contracted income in a market where cargo and passenger operators continue to seek capacity certainty.
The engineering business delivered about 500,000 booked man-hours and completed 69 checks during the quarter. Revenue at DAE Engineering declined as March activity was affected by regional conflict and related airspace restrictions, a reminder that maintenance, repair and overhaul operations remain exposed to flight disruptions even when underlying airline demand is strong.
The broader aviation finance backdrop remains favourable for large lessors. Airlines are expanding networks and replacing older aircraft, while production constraints at Airbus and Boeing have kept demand for leased aircraft elevated. Higher lease rates and strong residual values have improved lessor economics, though financing costs, geopolitical disruptions and fuel-price volatility continue to test airline balance sheets.
The Dubai-headquartered aviation services group said revenue rose 15.1 per cent to $455.5 million from $395.9 million a year earlier, while profit before tax increased 19 per cent to $120.4 million. Net profit climbed to $102.2 million, compared with $85.8 million in the first quarter of 2025, supported by higher lease revenue, gains on aircraft disposals and disciplined balance-sheet management.
The results underline DAE’s growing weight in global aircraft leasing at a time when airlines are competing for scarce new aircraft, delivery delays persist across major manufacturers and leasing platforms are attracting more institutional capital. The company’s pre-tax profit margin improved to 26.4 per cent from 25.6 per cent, while pre-tax return on equity held at 13 per cent.
Chief Executive Officer Firoz Tarapore described the quarter as “exceptional” for the franchise, pointing to the company’s agreement to acquire 100 per cent of Macquarie AirFinance Limited for an enterprise value of about $7 billion. Once completed, the transaction will add about 350 owned and committed aircraft to DAE’s fleet and lift the combined platform above 1,000 aircraft, giving the group greater reach across airline customers and geographies.
DAE ended March with total assets of $16.34 billion, down from $16.55 billion at the end of 2025, mainly reflecting lower cash balances. Net loans and borrowings declined to $9.95 billion from $10.23 billion, while total equity increased to $3.75 billion. The net-debt-to-equity ratio improved to 2.50 times from 2.58 times, showing a modest strengthening in leverage metrics despite a busy quarter for acquisitions and fleet activity.
Available liquidity rose sharply to $4.55 billion from $3.4 billion at the end of December after the group signed new long-term unsecured revolving credit facilities worth $2.8 billion. Its liquidity coverage ratio increased to 1,089 per cent from 277 per cent, giving the company greater capacity to manage debt maturities, aircraft purchases and transaction funding requirements.
DAE’s senior unsecured debt rating was upgraded to A- by KBRA during the quarter, a development that improves the group’s standing in debt markets as aircraft lessors continue to depend on efficient access to capital. The share of unsecured debt in total debt rose to 88.5 per cent from 87.8 per cent, reinforcing the company’s shift towards a more flexible funding structure.
Operationally, DAE acquired nine owned aircraft and sold 15 aircraft, including 12 owned and three managed units. It signed 64 lease agreements, extensions and amendments, reflecting continued airline demand for capacity. The owned, managed and committed fleet stood at 663 aircraft at the end of March, comprising 489 owned, 109 managed and 65 committed aircraft.
DAE Capital’s fleet value remains around $25 billion, with exposure across Airbus, Boeing and ATR aircraft. Its owned passenger fleet had a weighted average age of 6.9 years and a weighted average remaining lease term of 6.4 years. Freighter aircraft had a weighted average age of 11.8 years and a remaining lease term of 8.6 years, providing long-dated contracted income in a market where cargo and passenger operators continue to seek capacity certainty.
The engineering business delivered about 500,000 booked man-hours and completed 69 checks during the quarter. Revenue at DAE Engineering declined as March activity was affected by regional conflict and related airspace restrictions, a reminder that maintenance, repair and overhaul operations remain exposed to flight disruptions even when underlying airline demand is strong.
The broader aviation finance backdrop remains favourable for large lessors. Airlines are expanding networks and replacing older aircraft, while production constraints at Airbus and Boeing have kept demand for leased aircraft elevated. Higher lease rates and strong residual values have improved lessor economics, though financing costs, geopolitical disruptions and fuel-price volatility continue to test airline balance sheets.
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