One of the most common questions among pilots, private flyers, and aviation businesses is:

Is it better to lease or buy an aircraft?

This decision can impact your finances, flying schedule, and long-term aviation plans. Whether you're a private pilot or a company managing a fleet, it's a choice that requires careful thought.

📊 According to Market Research Future, about 50% of all new commercial aircraft are now leased instead of purchased outright. That shows just how popular and practical leasing has become in aviation today.

But does that mean it's the better option for everyone? Not necessarily. This guide will break down the pros, cons, and costs of both options, enabling you to determine which one best suits your flying needs and budget.

Leasing vs Buying: What's the Difference?

Before comparing costs and benefits, it's essential to understand the key differences between leasing and buying in the aviation industry. If you’ve ever asked yourself, “Is it better to lease or buy aircraft?”, knowing the basics will help you make a more informed choice.

• Leasing an aircraft involves paying a monthly fee to use the plane for a specified period, typically ranging from 2 to 10 years. At the end of the lease, you return it or renew the agreement.
• Buying means you pay for the aircraft—either in whole or through financing—and become its complete legal owner. You control how, when, and whether it's used, maintained, or sold.

Both options allow you to use the aircraft, but the way you pay for it and what you receive in return is very different.

Pros and Cons of Leasing an Aircraft

Leasing is popular with airlines, private companies, and even some individual flyers. It gives flexibility and lowers the upfront cost. But it also comes with trade-offs for those wondering, “Is it better to lease or buy aircraft? ”

Advantages of Leasing

1. Lower upfront costs

You don't need millions of dollars right away. Most leases only require a deposit and the first month's payment, making this option more accessible.

2. Flexibility

At the end of the lease, you can walk away, renew, or switch to a newer aircraft. This is useful if your flying needs to change.

3. No depreciation worries

Aircraft lose value over time. But with a lease, that's the lessor's problem—not yours.

4. Easier access to newer aircraft

Leasing helps you fly modern, fuel-efficient planes without paying full price. This is ideal for businesses seeking to maintain a modern image or lower fuel costs.

Disadvantages of Leasing

1. No ownership

When your lease ends, you don't have anything to show for your payments. You can't sell or profit from the aircraft.

2. Usage limits

Many leases have flight hour limits. If you fly excessively, you may incur overuse charges.

3. Less control

You often can't make major customizations or upgrades. Changes may need approval from the lessor.

4. Potentially higher long-term cost

Leasing may seem cheaper at first, but over 5–10 years, it can cost more than owning, especially if you fly often.

Pros and Cons of Buying an Aircraft

Buying a plane gives you complete control and possibly lower long-term costs. But it also comes with significant responsibilities and expenses.

Advantages of Buying

1. Full ownership

You control the aircraft. You can fly it as much as you like, modify it, and sell it when you're done.

2. Tax benefits

In many countries, businesses can deduct expenses such as depreciation, fuel, and maintenance. This can reduce your overall tax bill.

3. No usage limits

There are no flight hour limits or usage fees. You can fly every day if needed.

4. Lower long-term cost

If you use the aircraft regularly, owning it becomes cheaper over time compared to paying lease fees month after month.

Disadvantages of Buying

1. High upfront costs

Even small aircraft can cost hundreds of thousands of dollars. Mid-size or large jets can cost millions. You may need a sizable down payment and financing.

2. You absorb depreciation

Planes lose value, especially in the first few years. That affects resale value when you decide to sell.

3. Maintenance is your job

As the owner, you're fully responsible for all upkeep, repairs, insurance, storage, and inspections.

Cost Breakdown: Lease vs. Buy (5-Year Estimate)

To help you compare, here is a sample cost breakdown for a mid-sized business jet over a five-year period. 
These numbers are helpful when considering the question, “Is it better to lease or buy aircraft for long-term use?”

Note: Costs vary based on the aircraft's age, brand, and condition. These are sample numbers.

When Leasing Makes More Sense

Leasing may be the better option if:

• You only need the aircraft for a short term, such as 2–5 years.
• You fly less than 150–200 hours per year.
• You want to avoid a big upfront payment.
• You prefer fixed, predictable monthly costs.
• You like the idea of trying different aircraft before making a commitment.

If you're still asking, “Is it better to lease or buy aircraft?”, leasing makes the most sense for commercial operators, charter services, and newer aviation businesses.

When Buying Is the Better Option

Buying becomes a more brilliant financial move if:

• You fly more than 200 hours per year.
• You want complete control over the aircraft, including upgrades and modifications.
• You plan to keep the plane for more than 5–7 years.
• You want to build equity in the plane and sell it later.
• You are looking for tax advantages as a business owner.

If you're an experienced pilot or aviation company with stable flying needs, owning may save you more in the long run.

Other Options: Fractional Ownership and Co-Ownership

If neither leasing nor buying is ideal, there are shared options worth exploring. These allow you to use an aircraft without carrying the full cost alone.

Fractional Ownership

This is like a timeshare but for planes. You buy a share (e.g., 1/8 of a plane) and pay only for your portion of flying time.

• Ideal for people who fly 50–100 hours per year
• Includes services like maintenance, pilot scheduling, and storage
• It gives access to a fleet of aircraft, not just one.

 Co-Ownership

You buy an aircraft with one or more partners, sharing the purchase cost, maintenance, and usage.

• You gain more control than with leasing, but you also share the financial burden.
• You must have clear agreements in place to avoid conflicts.
• Popular among private pilots and flying clubs

Both options offer more flexibility and cost savings if you don't need full-time access to your aircraft.

Final Thoughts: Should You Lease or Buy?

So, is it better to lease or buy an aircraft? The answer depends on your flying habits, budget, and goals.

Choose to lease if you:

• Want to avoid big upfront payments
• I need the plane for a short period.
• I prefer switching planes regularly.
• I don't want the hassle of maintenance and the potential for resale issues.

Choose to buy if you:

• Fly frequently
• Want long-term savings and complete control?
• Plan to keep the plane for years.
• Want to customize and use the aircraft without limits?

If neither option works for you, shared ownership or fractional programs might offer the perfect middle ground.

FAQs

1. What are the disadvantages of aircraft leasing?

Leasing an aircraft can limit your ability to customize or upgrade it. You may also face restrictions on flight hours and penalties for wear and tear. These are key considerations to take into account when deciding whether to lease or purchase an aircraft for your long-term needs.

2. Why do airlines choose to lease planes?

Leasing allows airlines to save on upfront costs and easily switch to newer models. It also helps manage fleet size based on seasonal demand. Still, many decision-makers ask whether it is better to lease or buy aircraft, depending on long-term route planning.

3. Does leasing save you money?

Leasing can save money in the short term due to lower initial expenses. However, it may be more expensive over time compared to buying, especially with frequent use. That’s why understanding whether it's better to lease or buy an aircraft is critical for cost planning.

4. How much do airlines pay to lease planes?

Lease costs vary widely—from tens of thousands per month for smaller jets to hundreds of thousands for wide-body aircraft. These figures often drive the debate around whether it is better to lease or buy aircraft for commercial operations.

5. Is leasing better than owning?

Leasing offers more flexibility, while owning provides more control and long-term savings. The correct answer to whether it is better to lease or buy an aircraft depends on how often you fly, your budget, and how long you plan to use the plane.