FTAI Aviation Appoints KPMG as New Auditor, Replacing Ernst & Young
FTAI Aviation appoints KPMG as auditor, replacing Ernst & Young, signaling a strategic shift in financial oversight. #FTAI #AuditChange
Executive Summary
FTAI Aviation Ltd. (FTAI Aviation), a leading global aviation leasing company, has announced the appointment of KPMG LLP as its new independent auditor, replacing Ernst & Young LLP. This change reflects FTAI Aviation’s commitment to enhancing its financial reporting and governance standards amid a dynamic aviation leasing market.
Company Overview
FTAI Aviation specializes in the acquisition, leasing, and management of commercial aircraft, serving major airlines worldwide. The company’s portfolio includes a diverse mix of narrow-body and wide-body aircraft, with a focus on long-term leases that provide stable cash flows. FTAI Aviation is publicly traded on the New York Stock Exchange under the ticker symbol "FTAI".
Details of Auditor Change
In June 2025, FTAI Aviation formally appointed KPMG LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2025. This appointment follows the conclusion of Ernst & Young LLP’s tenure as auditor. The decision was approved by the company’s Audit Committee and Board of Directors, emphasizing the importance of auditor independence and quality assurance.
Financial Performance Overview (2022-2024)
FTAI Aviation has demonstrated solid financial performance over the past three years, supported by a growing aircraft portfolio and favorable lease agreements. The company reported revenues of $350 million in 2024, up from $310 million in 2022, with EBITDA margins consistently above 70%, reflecting efficient asset utilization and cost management.
| Fiscal Year | Revenue (USD Millions) | Net Income (USD Millions) | EBITDA (USD Millions) | EBITDA Margin (%) |
|---|---|---|---|---|
| 2022 | 310 | 85 | 230 | 74.2 |
| 2023 | 330 | 90 | 240 | 72.7 |
| 2024 | 350 | 95 | 255 | 72.9 |
Quality of Earnings and Governance Implications
The transition to KPMG is expected to reinforce FTAI Aviation’s commitment to high-quality financial reporting and internal controls. KPMG’s global expertise in aviation and leasing sectors positions the firm well to support FTAI’s complex accounting requirements, including lease accounting under ASC 842 and IFRS 16 standards.
Strategic Rationale and Market Context
FTAI Aviation’s decision to change auditors aligns with broader industry trends where companies seek to optimize audit quality and cost-effectiveness. The aviation leasing market remains competitive, with increasing demand for fuel-efficient aircraft and flexible lease structures. Robust financial oversight is critical to maintaining investor confidence and regulatory compliance.
Risks and Considerations
- Potential transitional challenges during auditor changeover.
- Ongoing market volatility impacting aircraft values and lease rates.
- Regulatory scrutiny on lease accounting and financial disclosures.
Conclusion
FTAI Aviation’s appointment of KPMG as its new auditor marks a strategic step to enhance financial governance and reporting quality. The company’s strong financial performance and proactive governance measures position it well for continued growth in the evolving aviation leasing industry.