ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter "ITOCHU") announced today that it has established a new subsidiary, IC Aero Co., Ltd. (headquartered in Minato-ku, Tokyo; Sen Shimizu, President and Chief Executive Officer; hereinafter "IC Aero") to expand its aircraft leasing business.

Having overcome the temporary stagnation due to the COVID-19 pandemic, air passenger demand has recovered and now surpasses pre-pandemic levels. The total number of worldwide passenger aircraft is expected to increase to approximately 41,000 in 2043 (about 1.6 times more than in 2023)*¹ as passenger demand continues to grow. In this context, airlines are actively procuring more equipment which they will operate through the use of leasing products. Already today, leased aircraft constitute approximately half of all passenger aircraft currently in operation around the world.*²

Since the 1970s, ITOCHU has operated an aircraft leasing business covering aircraft procurement, the ownership of aircraft and related assets, aircraft sales and lease management services, targeting domestic and overseas customers who invest in aircraft. In 2024, ITOCHU invested in Killick Aerospace Limited (headquartered in Ireland; Russell Starr, CEO), a supplier of end-of-life aircraft through aircraft teardown and recycling*³ and engine leasing, to enhance its position in the aerospace aftermarket.*⁴

ITOCHU will, through its newly-established subsidiary IC Aero, provide high quality aircraft leasing products and related services to more customers including airlines in Japan and around the world, reinforcing its procurement, sales and management systems and leveraging its existing expertise in aircraft leasing . In addition, ITOCHU will establish a unique and sustainable aircraft value chain covering the entire aircraft life cycle from new production to end-of-life and retirement.