Author(s)

Xinyi Zhou ¹

Affiliation(s)

¹ School of Accounting, Lanzhou University of Finance and Economics, Lanzhou, 730020, Gansu, China

Corresponding Author

Xinyi Zhou

ABSTRACT

With the implementation of International Financial Reporting Standard 16(IFRS 16)and Chinese new lease standards, the capitalization of operating leases has had a significant impact on airlines' financial performance and operational management. Taking X Airlines as an example, this paper focuses on the transformation in the accounting treatment of aircraft leases under the new standards and explores their ripple effects on financial statements, key financial indicators, and corporate strategy. The study finds that following the implementation of the standards, X Airlines' debt-to-equity ratio rose significantly, and profitability metrics such as EBITDA were passively optimized. However, actual debt service pressure and financing costs increased, posing potential challenges to the company's credit rating and financing capacity. The study further proposes that airlines need to strengthen risk management of lease contracts and balance off-balance-sheet financing with capital structure stability, while recommending that regulatory authorities pay attention to the industry-specific applicability of the standards. The conclusions of this paper provide practical references for aviation enterprises to respond to changes in accounting standards and optimize resource allocation.

KEYWORDS

New Lease Standards; Aviation Enterprises; Operating Leases; Financial Impact

CITE THIS PAPER

Xinyi Zhou. The Impact of Current Lease Standards on Airlines: A Case Study of X Airlines. Accounting and Corporate Management (2026). Vol. 8, No. 1, 115-122. DOI: http://dx.doi.org/10.23977/acccm.2026.080115.

REFERENCES

[1] He Hong, Xiong Jian, Zhao Kangle, et al. Comparative Study on Several Issues of Current Lease Accounting Standards Across the Taiwan Strait: Following the Historical Evolution and Implementation Status of CAS-21 (2018) and IFRS-16 Convergence [J]. Finance and Accounting Communication, 2022, (17):107-113. DOI:10.16144/j.cnki.issn1002-8072.2022.17.013.
[2] Shen Wei. An analysis of the impact of changes in international leasing standards on lessees [J]. Finance and Accounting Studies, 2018, (11):14-16.
[3] Wang Xinhong, Zhao Xiaoru. Analysis of the Impact of New Leasing Standards on the Finance of Aviation Enterprises: A Case Study of Three Airlines [J]. Financial Supervision, 2021, (08):99-104.
[4] Liu Zhuozhuo. Research on the Impact of the Implementation of New Leasing Standards on Aviation Enterprises [D]. Beijing Jiaotong University, 2020. DOI: 10.26944/d.cnki.gbfju.2020.000327
[5] Song Fangli. Research on Accounting Treatment Issues in Leasing [D]. Chang'an University, 2017.

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