Key facts
- Airlines are getting grounded jets back into service, but the financial impact of a long-standing engine crisis persists.
- Engine issues at one point left up to 20% of Air New Zealand's fleet unavailable, necessitating leases for aircraft and engines.
- Spending on engine labor, aircraft-engine repairs, and engine materials rose approximately 68% across six large U.S. airline operations between 2019 and 2025.
- Overhaul and mandatory parts-replacement costs for newer LEAP and GTF engines have risen about twice as much since 2019 compared to older engines.
- Short-term leases for newer engines have exceeded $6,500 per day, up from around $5,000 per day in 2022-23.
- Delayed aircraft replacements are estimated to have added about $3.1 billion to global airline maintenance costs in 2025.
Airlines are successfully returning previously grounded aircraft to service, but the financial repercussions of a prolonged engine crisis continue to affect the industry. While fleet availability is improving, the costs associated with extended leases, higher repair expenses, and parts shortages are proving persistent.
Air New Zealand, for instance, experienced significant fleet unavailability due to engine problems, forcing it to lease additional aircraft and engines. Although availability has since improved, Chief Executive Nikhil Ravishankar indicated it could take 12 to 18 months to eliminate these extra lease costs, which are only partially offset by supplier compensation.
The engine crisis was driven by durability issues in newer engines and a specific powder-metal problem at Pratt & Whitney, which necessitated accelerated inspections and removals. This was compounded by broader shortages in labor, parts, and repair capacity. Airlines resorted to leasing replacement engines and aircraft to maintain operations, leading to increased overhaul, parts, and lease expenses even as groundings decrease.
Furthermore, delayed deliveries of new aircraft from manufacturers like Boeing and Airbus are compelling airlines to keep older jets in service longer, pushing them into engine work they had hoped to avoid. A Reuters analysis of U.S. Transportation Department data revealed a substantial increase in reported spending on engine labor, repairs, and materials for six large U.S. airlines, rising about 68% between 2019 and 2025, while flight hours increased by only about 10%.
Parts and materials constitute approximately 60% of the direct cost of a typical single-aisle engine overhaul. Newer engines, while more fuel-efficient, incur higher overhaul bills due to fewer developed repair options and a scarcity of used parts. Experts note that overhaul and mandatory parts-replacement costs for newer LEAP and GTF engines have roughly doubled since 2019 compared to older engine models.
Long shop visits can necessitate engine leases, with some Pratt & Whitney engines requiring 200 to 300 days for a shop visit. Short-term leases for newer engines have become more expensive, exceeding $6,500 per day in recent transactions. Engine lessor Willis Lease Finance CEO Austin Willis stated that airlines often seek leases lasting around three years, and shorter contracts are frequently extended, meaning airlines may continue paying for leases even after their own engines are repaired.
Delayed aircraft retirements are also impacting the availability and price of used engine parts, as fewer engines are being dismantled for components. This situation has intensified tensions between airlines and engine manufacturers regarding repair costs and pricing. United Airlines CEO Scott Kirby affirmed that engine makers possess significant pricing power and are leveraging shortages to increase charges to airlines.