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Fortress and Porter Airlines Announce Sale-Leaseback of Four Embraer E195-E2 Aircraft

1. Fortress acquired four Embraer E195-E2 aircraft from Porter Airlines. 2. The aircraft will enhance Porter's network expansion, especially in underserved markets. 3. Porter's operational efficiency and market growth are underscored as key investment drivers. 4. E195-E2 aircraft offer lower emissions and fuel consumption compared to older models. 5. Partnerships with Fortress and GOAL are expected to foster continued airline growth.

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FAQ

Why Bullish?

Porter's aircraft leaseback indicates confidence in growth and profitability. Previous similar transactions in the airline industry showed positive price performance due to enhanced fleet capabilities.

How important is it?

The deal enhances Porter’s operations, likely leading to increased profitability and stock performance. It is a crucial strategic development in aligning modern fleet capabilities with market demands.

Why Long Term?

The leaseback transaction strengthens Porter's fleet and market positioning over several years, impacting long-term growth. Historical data suggests that fleet modernization usually results in sustained improvements in operational metrics and market share.

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Long-term sale-leaseback transaction will support Porter Airlines’ continued network expansion NEW YORK--(BUSINESS WIRE)--Fortress Investment Group today announced that funds managed by its affiliates (“Fortress”), alongside GOAL Aircraft Leasing (“GOAL”), have acquired four new Embraer E195-E2 aircraft from Porter Airlines as part of a sale-leaseback transaction.“This transaction illustrates our ability to offer borrowers financing on a range of assets that have strong underlying cash flows” - Dominick Ruggiero, Global Co-Head of Asset-Based Credit at FortressShare The aircraft will be operated by Porter under a long-term lease agreement. Two aircraft have already been delivered to Porter, and the remaining two aircraft will be delivered during 2025. Fortress has also entered into a servicing agreement with GOAL for the four aircraft. Ashland Place Finance is providing debt financing to Fortress and GOAL for the transaction. “Fortress is pleased to work with Porter Airlines, GOAL and Ashland Place Finance on this sale-leaseback transaction,” said Matthew Mortara, Managing Director at Fortress. “Porter’s brand, elevated all-economy service and ongoing network growth – especially to underserved markets – are helping the company secure an increased share of airline travel across Canada and the broader North America region. We’re delighted to support the company’s acceleration of that growth in a capital-efficient way through this transaction.” Porter is currently Canada’s third-largest airline, offering high-frequency flights to connect underserved markets to key hubs that include Billy Bishop Toronto City Airport (YTZ), Toronto Pearson International Airport (YYZ) and Ottawa International Airport (YOW). “This transaction illustrates our ability to offer borrowers financing on a range of assets that have strong underlying cash flows,” adds Dominick Ruggiero, Global Co-Head of Asset-Based Credit at Fortress. “We believe that Porter’s continued investment in its operations and increasing market share make this sale-leaseback transaction a compelling investment opportunity for our fund investors.” “The E195-E2 plays a central role in our ability to deliver a leading customer experience for economy passengers, including the much-appreciated two-by-two configuration that eliminates middle seats,” said Julian Low, Vice President, Corporate Development at Porter Airlines. “The aircraft has proven to be incredibly efficient, outperforming key operational and financial targets since entering our fleet in 2023. We value our continuing relationship with GOAL, and welcome Fortress and Ashland Place as new partners.” The Embraer E195-E2 aircraft have a range of approximately 2,600 nautical miles, giving Porter the potential to connect every city in North America. The E195-E2 is among the quietest single-aisle aircraft in operation today, emits significantly less CO2 than comparable older-generation aircraft, and consumes among the lowest amount of fuel per seat and per trip in the 120-150 seat aircraft category. Eighteen airlines currently operate Embraer E195-E2 aircraft. About Fortress Investment Group Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $51 billion of assets under management as of March 31, 2025, on behalf of approximately 2,000 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies. AUM refers to assets Fortress manages, including capital that Fortress has the right to call from investors, or investors are otherwise required to contribute, pursuant to their capital commitments to various funds or managed accounts. For more information, please visit www.fortress.com. About Porter Since 2006, Porter Airlines has been elevating the experience of economy air travel for every passenger, providing genuine hospitality with style, care and charm. Porter’s fleet of Embraer E195-E2 and De Havilland Dash 8-400 aircraft serves a North American network from Eastern Canada. Headquartered in Toronto, Porter is an Official 4 Star Airline® in the World Airline Star Rating®. Visit www.flyporter.com or follow @porterairlines on Instagram, Facebook and Twitter. About GOAL Aircraft Leasing GOAL (German Operating Aircraft Leasing), a joint venture between KGAL and Deutsche Lufthansa AG, is Germany’s leading aircraft asset manager and ranked among the Top 15 globally by ISHKA. Founded in 1998, GOAL combines decades of industry expertise with over USD 4.5 billion in transactions, providing customized leasing solutions to airlines and risk-managed investment services to institutional investors worldwide. GOAL manages a portfolio of more than 60 modern aircraft valued at around USD 2.8 billion and has a strong track record in structuring complex deals across sale & leasebacks, PDP financing, remarketing, and long-term asset management. Leveraging Lufthansa’s operational expertise and KGAL’s financial strength, GOAL applies a disciplined investment approach across market cycles. More at www.goal-leasing.com About Ashland Place Finance LLC Ashland Place Finance LLC is an institutional financing platform offering innovative capital solutions to the global commercial aerospace industry. Ashland Place is a wholly-owned subsidiary of Davidson Kempner Capital Management LP. Additional information can be found at: www.ashlandplace.com.

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