FLY LEASING LIMITED

1 UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 20549 FORM 20-F (Mark One) REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or (g) OF THE SECURITIES EXCHANGE ACT OF 1934OR ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2017OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934OR SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-33701 FLY LEASING LIMITED (Exact name of Registrant as specified in its charter)Bermuda(Jurisdiction of incorporation or organization)West Pier Business Campus Dun LaoghaireCounty Dublin, A96 N6T7, Ireland(Address of principal executive office)Vincent Cannon, West Pier Business Campus, Dun Laoghaire, County Dublin, A96 N6T7, IrelandTelephone number: +353 1 231 1900, Facsimile number: +353 1 231 1901(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)Securities registered or to be registered pursuant to Section 12(b) of the Act.

2 Title of each class Name of each exchange on which registered American Depositary Shares New York Stock Exchange Common Shares, par value of $ per share New York Stock Exchange* *Not for trading, but only in connection with the registration of American Depositary Shares representing these shares, pursuant to the requirements of theSecurities and Exchange registered or to be registered pursuant to Section 12(g) of the for which there is a reporting obligation pursuant to Section 15(d) of the Indicate the number of outstanding shares of each of the issuer s classes of capital or common stock as of the close of the period covered by the annual ,983,352 Common Shares, par value of $ per Manager Shares, par value of $ per shareIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

3 Yes No If this report is an annual or transition report, indicate by check mark, if the registrant is not required to file reports pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 duringthe preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for thepast 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required tobe submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required tosubmit and post such files).

4 Yes No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. Seedefinition of large accelerated filer, accelerated filer, and emerging growth company in Rule 12b-2 of the Exchange accelerated filer Accelerated filer Non-accelerated filer Emerging growth company If an emerging growth company that prepares its financial statements in accordance with GAAP, indicate by check mark if the registrant has elected notto use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the ExchangeAct. Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this GAAP International Financial Reporting Standards as issuedby the International Accounting Standards Board Other If Other has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

5 Yes No PRELIMINARY NOTEThis Annual Report should be read in conjunction with the consolidated financial statements and accompanying notes included in this consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ( GAAP ) and are presentedin Dollars. These statements and discussion below contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of1995. These forward-looking statements include, but are not LIMITED to, objectives, expectations and intentions and other statements contained in this AnnualReport that are not historical facts, as well as statements identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, or words of similar meaning.

6 Such statements address future events and conditions concerning matters such as, but not LIMITED to, our earnings, cashflow, liquidity and capital resources, compliance with debt and other restrictive financial and operating covenants, interest rates, dividends, acquisitions anddispositions of aircraft, and our ability to complete the AirAsia Transactions (as defined below) and achieve its anticipated benefits. These statements are based oncurrent beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actualresults may differ materially from these expectations due to changes in political, economic, business, competitive, market and regulatory factors.

7 We believe thatthese factors include, but are not LIMITED to those described under Item 3 Key Information Risk Factors and elsewhere in this Annual to the extent required by applicable law or regulation, we undertake no obligation to update these forward looking statements to reflect events,developments or circumstances after the date of this document, a change in our views or expectations, or to reflect the occurrence of future the context requires otherwise, when used in this Annual Report, (1) the terms Fly, Company, we, our and us refer to Fly LEASING LIMITED andits subsidiaries; (2) the term B&B Air Funding refers to our subsidiary, Babcock & Brown Air Funding I LIMITED ; (3) all references to our shares refer to ourcommon shares held in the form of American Depositary Shares, or ADSs; (4) the term BBAM LP refers to BBAM LIMITED Partnership and its subsidiaries andaffiliates; (5) the terms BBAM and Servicer refer to BBAM Aircraft Management LP, BBAM Aircraft Management (Europe) LIMITED , BBAM AviationServices LIMITED and BBAM US LP collectively; (6) the term Manager refers to Fly LEASING Management Co.

8 LIMITED , the Company s manager; (7) the term Fly-Z/C LP refers to Fly-Z/C Aircraft Holdings LP; (8) the term GAAM refers to Global Aviation Asset Management; (9) the term GAAM Portfolio refersto the portfolio of 49 aircraft and other assets acquired from GAAM; (10) the term ECAF-I Transaction" refers to the portfolio of 33 aircraft sold to ECAF I Ltd;and (11) the term AirAsia Transactions refers to the pending acquisition by Fly of (i) a portfolio of 34 Airbus A320-200 aircraft and seven engines, on operatingleases, from AirAsia Berhad ( AirAsia ) and its subsidiary, Asia Aviation Capital LIMITED ( AACL ) in 2018, (ii) the portfolio of 21 Airbus A320neo familyaircraft on operating leases to AirAsia and its affiliated airlines (the "AirAsia Group") to be acquired as the aircraft deliver between 2019 and 2021 and (iii)

9 Theoptions to purchase an additional 20 Airbus A320neo family aircraft, not subject to lease, which begin delivering as early as indicated otherwise, all percentages and weighted average characteristics of the aircraft in our portfolio have been calculated using net book values as ofDecember 31, 2017 . 1 TABLE OF CONTENTS Page PART I Item 1. Identity of Directors, Senior Management and Advisers Not Applicable3 Item 2. Offer Statistics and Expected Timetable Not Applicable3 Item 3. Key Information3 Item 4. Information on the Company26 Item 4A. Unresolved Staff Comments Not Applicable33 Item 5. Operating and Financial Review and Prospects33 Item 6. Directors, Senior Management and Employees51 Item 7. Major Shareholders and Related Party Transactions54 Item 8.

10 Financial Information64 Item 9. The Offer and Listing65 Item 10. Additional Information66 Item 11. Quantitative and Qualitative Disclosures About Market Risk75 Item 12. Description of Securities Other Than Equity Securities76 PART II Item 13. Defaults, Dividend Arrearages and Delinquencies Not Applicable77 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds77 Item 15. Controls and Procedures77 Item 16A. Audit Committee Financial Expert79 Item 16B. Code of Ethics79 Item 16C. Principal Accountant Fees and Services79 Item 16D. Exemptions from the Listing Standards for Audit Committees Not Applicable79 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers80 Item 16F.