Airline performance and the leasing ratio in the context of business models

Abstract The paper analyzes how aircraft acquisition structures - leased versus owned - affect airline performance. It considers the controlling role of business models, specifically low-cost carriers (LCCs) and full-service providers (FSPs). Using financial and operational data from 142 airlines globally, the study applies correlation and regression analysis to assess how leasing ratios influence indicators such as revenue, market capitalization, fleet value, load factor and profitability. While leasing offers flexibility and supports fast expansion, it does not guarantee operational efficiency. The study emphasizes the need to control for the business model when analyzing the financial effects of leasing. Model-specific strategies significantly influence an airline‘s performance outcomes. LCCs typically exhibit higher leasing ratios due to their asset-light strategies and initial capital limitations. Future research should address whether airlines rely on leasing primarily as a tool for operational optimization or as a response to financial necessity.