Willis Lease Finance Corp (NASDAQ: WLFC) is an aviation leasing company that acquires and leases commercial jet engines and aircraft to airlines and other aviation operators. Revenue comes primarily from operating lease payments on jet engines and aircraft, supplemented by engine sales, maintenance reserves, and notes receivable income. As of December 31, 2024, WLFC held $2,635.9 million of equipment in its operating lease portfolio, $183.6 million of notes receivable, $31.1 million of maintenance rights, and $21.6 million of investments in sales-type leases. The aircraft portfolio included 16 aircraft across ATR 72-500, Boeing 737-700, Airbus A319, and Airbus A320 variants, with an aggregate net book value of $161.0 million as of December 31, 2024. The company operates a 50% joint venture, CASC Willis Lease Finance Company Limited, based in Shanghai, China, which leases jet engines to Chinese airlines. That joint venture held four engines with a net book value of $37.3 million and carried a WLFC investment of $17.9 million as of December 31, 2024. The business is capital-intensive and debt-funded, with substantial debt obligations on the balance sheet. Austin C. Willis serves as CEO.

Revenue model

Operating lease payments on jet engines and aircraft are the primary revenue source. Additional revenue comes from engine and aircraft sales, maintenance reserves collected from lessees, income on notes receivable, and sales-type lease income. Aircraft leases are structured as triple-net leases, with lessees responsible for maintenance, insurance, and taxes.

Products and services

Commercial jet engines held for operating lease; commercial aircraft including ATR 72-500, Boeing 737-700, Airbus A319-100, A320-214, A320-200, A320-232, and A320-233 variants; notes receivable financing; sales-type leases; spare parts inventory; engine trading and sales.

Customers and end markets

Airlines and aviation operators globally, including Chinese airlines served through the CASC Willis joint venture. End market demand is driven by commercial aviation activity and airline need for spare and replacement jet engines.

Value-chain role

Asset owner and lessor sitting between engine manufacturers and airlines. WLFC acquires engines and aircraft, manages the lease portfolio, and remarkably engines at end-of-lease or during transitions between operators. The company also provides notes receivable financing to aviation counterparties.

Geographic exposure

Global operations with a specific joint venture presence in China through CASC Willis Lease Finance Company Limited, based in Shanghai. The joint venture focuses on the Chinese commercial aviation market.

Source: SEC 10-K, filed 2025-03-11

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