3. Aircraft Leasing – hedge funds and wealthy investors have bought large numbers of aircraft for the purpose of leasing to airlines of all sizes. Airlines would sometimes prefer to lease vs. buy in order to preserve capital and reduce their asset base on their balance sheet.
This type of investment took a big hit when airlines cut back on flights after the coronavirus halted airline travel.
However, it might become more popular long term as airlines choose to maintain more flexibility in increasing or decreasing the size of their fleet.