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Willis Lease Finance Corporation Invests in the Future with the Purchase of Nine Advanced GTF Engines, Powering the Latest Technology AIRBUS A320 Family in 2024

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Willis Lease Finance (NASDAQ: WLFC) has announced a significant transaction with Pratt & Whitney for the purchase of nine new PW1133G-JM aircraft engines, valued at approximately $200 million. The purchase is expected to be completed by December 31, 2024.

The GTF engines offer up to 20% improved fuel efficiency compared to previous generation engines and are certified for operation on 50% sustainable aviation fuel (SAF), with successful testing on 100% SAF. This investment strengthens WLFC's position in providing modern, fuel-efficient engines for A320 aircraft operators.

Willis Lease Finance (NASDAQ: WLFC) ha annunciato una transazione significativa con Pratt & Whitney per l'acquisto di nove nuovi motori PW1133G-JM, valutati circa 200 milioni di dollari. Si prevede che l'acquisto sarà completato entro il 31 dicembre 2024.

I motori GTF offrono un 20% di miglioramento nell'efficienza del carburante rispetto ai motori di generazione precedente e sono certificati per funzionare con il 50% di carburante per aviazione sostenibile (SAF), con test riusciti su carburante 100% SAF. Questo investimento rafforza la posizione di WLFC nell'offrire motori moderni e efficienti in termini di carburante per gli operatori di aerei A320.

Willis Lease Finance (NASDAQ: WLFC) ha anunciado una transacción significativa con Pratt & Whitney para la compra de nueve nuevos motores de avión PW1133G-JM, valorados en aproximadamente 200 millones de dólares. Se espera que la compra se complete antes del 31 de diciembre de 2024.

Los motores GTF ofrecen hasta un 20% de mejora en la eficiencia del combustible en comparación con los motores de la generación anterior y están certificados para operar con un 50% de combustible de aviación sostenible (SAF), habiendo superado pruebas con un 100% de SAF. Esta inversión refuerza la posición de WLFC en la provisión de motores modernos y eficientes para los operadores de aeronaves A320.

윌리스 리스 파이낸스 (NASDAQ: WLFC)프랫 & 휘트니와의 중요한 거래를 발표하며, 약 2억 달러에 해당하는 9개의 새로운 PW1133G-JM 항공기 엔진을 구매한다고 전했습니다. 이 구매는 2024년 12월 31일까지 완료될 것으로 예상됩니다.

GTF 엔진은 이전 세대 엔진에 비해 20% 향상된 연료 효율성을 제공하며, 50%의 지속 가능한 항공 연료(SAF) 사용에 대한 인증을 받았고, 100% SAF로의 성공적인 테스트를 마쳤습니다. 이번 투자는 WLFC가 A320 항공기 운영자에게 현대적이고 연료 효율적인 엔진을 제공하는 입지를 강화합니다.

Willis Lease Finance (NASDAQ: WLFC) a annoncé une transaction importante avec Pratt & Whitney pour l'achat de neuf nouveaux moteurs d'avion PW1133G-JM, d'une valeur d'environ 200 millions de dollars. Cet achat devrait être finalisé d'ici le 31 décembre 2024.

Les moteurs GTF offrent jusqu'à une amélioration de 20% de l'efficacité énergétique par rapport aux moteurs de la génération précédente et sont certifiés pour fonctionner avec 50% de carburant d'aviation durable (SAF), ayant réussi des tests avec 100% de SAF. Cet investissement renforce la position de WLFC dans la fourniture de moteurs modernes et efficaces en termes de carburant pour les exploitants d'A320.

Willis Lease Finance (NASDAQ: WLFC) hat eine bedeutende Transaktion mit Pratt & Whitney angekündigt, bei der neun neue PW1133G-JM-Triebwerke im Wert von etwa 200 Millionen Dollar erworben werden. Der Kauf soll bis zum 31. Dezember 2024 abgeschlossen sein.

Die GTF-Triebwerke bieten eine 20%ige Verbesserung der Kraftstoffeffizienz im Vergleich zu Motoren der vorherigen Generation und sind für den Betrieb mit 50% nachhaltigem Flugbenzin (SAF) zertifiziert, wobei erfolgreiche Tests mit 100% SAF durchgeführt wurden. Diese Investition stärkt die Position von WLFC bei der Bereitstellung moderner, kraftstoffeffizienter Triebwerke für A320-Betreiber.

Positive
  • Major acquisition of 9 new GTF engines worth $200 million
  • Advanced engines offer 20% better fuel efficiency
  • Engines are certified for 50% SAF operation and tested for 100% SAF
  • Strategic expansion of modern engine portfolio for A320 aircraft
Negative
  • Significant capital expenditure of $200 million required

Insights

The $200 million engine acquisition represents a significant strategic investment for WLFC, accounting for approximately 15.7% of their market capitalization. This transaction strengthens WLFC's competitive position in the aircraft engine leasing market through several key advantages:

  • The PW1133G-JM engines command premium lease rates due to their advanced fuel efficiency and compatibility with sustainable aviation fuel (SAF)
  • The timing is opportune as airlines are increasingly focused on fleet modernization and environmental compliance
  • The investment diversifies and modernizes WLFC's engine portfolio while potentially generating higher margins compared to older engine models

The deal's structure, with deliveries scheduled before year-end 2024, suggests potential tax advantages and strategic timing to meet anticipated market demand. The investment aligns with industry trends toward more fuel-efficient aircraft, particularly as airlines face increasing pressure to reduce emissions and operating costs.

This engine acquisition is particularly strategic given current market dynamics. The PW1133G-JM engines are specifically designed for the A320neo family, one of the most popular narrow-body aircraft platforms. Key technical and market implications include:

  • The 20% improved fuel efficiency translates to substantial operating cost savings for airlines, making these engines highly attractive for leasing
  • Certification for 50% SAF operation, with successful testing at 100% SAF, future-proofs these assets against evolving environmental regulations
  • The A320 family's dominant market position and growing backlog ensures strong long-term demand for these engines

WLFC's timing is optimal as airlines accelerate fleet modernization plans post-pandemic and the global push toward sustainable aviation creates additional demand for GTF-powered aircraft.

COCONUT CREEK, Fla., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”), the leading lessor of commercial aircraft engines and provider of global aviation service operations, is pleased to announce that it has entered into a transaction with Pratt & Whitney for the purchase of nine new PW1133G-JM aircraft engines, with all purchases expected to occur by December 31, 2024. Pratt & Whitney’s GTF engines enable up to 20% better fuel efficiency compared to aircraft powered by the prior generation of engines, are certified for operation on 50% sustainable aviation fuel (“SAF”) and have been successfully tested on 100% SAF. The transaction, valued at approximately $200 million based on Pratt & Whitney’s 2024 list prices, is another big step towards providing the most modern and in-demand engines to airlines over the long term. Pratt & Whitney is an RTX (NYSE: RTX) business.

“We are thrilled to deepen our partnership with Pratt & Whitney as we continue to invest in cutting-edge, fuel-efficient, engines that deliver environmental benefits. This collaboration aligns perfectly with our growth strategy and will help our customers keep their A320 aircraft flying for the foreseeable future,” said Austin C. Willis, WLFC’s Chief Executive Officer.

For more information on Willis Lease Finance Corporation, visit www.wlfc.global.

Willis Lease Finance Corporation 

Willis Lease Finance Corporation (“WLFC”) leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair, and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services.

Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and the COVID-19 pandemic; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing and current reports filed with the Securities and Exchange Commission. It is advisable, however, to consult any further disclosures the Company makes on related subjects in such filings. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

CONTACT:

Lynn Mailliard Kohler
Manager Corporate Communications
lkohler@willislease.com
415.328.4798


FAQ

What is the value of WLFC's new engine purchase from Pratt & Whitney in 2024?

The transaction is valued at approximately $200 million based on Pratt & Whitney's 2024 list prices.

How many GTF engines is Willis Lease Finance (WLFC) purchasing in 2024?

WLFC is purchasing nine new PW1133G-JM aircraft engines from Pratt & Whitney.

What fuel efficiency improvement do the new WLFC GTF engines offer?

The GTF engines offer up to 20% better fuel efficiency compared to previous generation engines.

What is the sustainable aviation fuel (SAF) capability of WLFC's new GTF engines?

The engines are certified for operation on 50% SAF and have been successfully tested on 100% SAF.

When will WLFC complete the purchase of the new GTF engines?

All purchases are expected to occur by December 31, 2024.

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