In this episode of the Aviation Leaders Series with KPMG and Airline Economics, Joe McConnell, Partner and Deputy Co‑Chief Investment Officer at Castlelake, shares a wide‑ranging, deeply informed perspective on the state of global aviation as we enter 2026 with James Kelly, Head of Aviation Finance at KPMG.
McConnell explains why air‑travel demand has not only recovered but accelerated, with international traffic and emerging markets driving global growth. He discusses the ongoing impact of inflation on aircraft values, the shifting presence of Chinese lessors, and why aircraft remain a resilient, inflation‑protected asset class despite geopolitical volatility.
A major focus of the conversation is the industry‑wide challenge of new‑technology engines. McConnell outlines how unpredictable time‑on‑wing and shop‑visit costs are reshaping underwriting, risk assessment and transition planning — and why investors must rethink assumptions about “young equals low‑risk.”
The episode also explores market consolidation, widebody vs narrowbody dynamics, ABS returning to full strength, the rise of aviation private credit, and Castlelake’s expanded capital‑solutions platform.
Colombia