Airlines get grounded jets flying again, but engine bills linger

• Newer LEAP and GTF engines have seen overhaul costs rise twice as much as older CFM56 and V2500 engines since 2019, with parts accounting for 60% of typical overhaul costs and fewer used parts available
• Engine lease rates for newer models exceeded $6,500 per day in recent transactions versus $5,000 in 2022-23, with airlines often committing to 3-year leases that outlast actual repair times
• Delayed aircraft deliveries from Boeing and Airbus added an estimated $3.1 billion to global maintenance costs in 2025 by forcing airlines to keep older jets in service longer than planned

Airlines Face Lingering Financial Strain from Engine Crisis Despite Operational Recovery

Airlines are successfully returning grounded aircraft to service, but elevated maintenance costs from a prolonged engine crisis continue to burden the industry. A Reuters analysis of U.S. Transportation Department data reveals that across six major U.S. airline operations, engine-related spending surged approximately 68% between 2019 and 2025, while flight hours increased only 10%. First-quarter 2025 data showed spending up 17% year-over-year against less than 2% growth in hours flown.

Key Companies and Products:

• Engine manufacturers: GE Aerospace, Safran (LEAP engines), RTX's Pratt & Whitney (GTF/PW1100G engines), Rolls-Royce
• Airlines affected: Air New Zealand, United Airlines, American Airlines, JetBlue Airways
• Aircraft manufacturers: Boeing, Airbus

Crisis Drivers:

The crisis stemmed from durability issues with newer engines and Pratt & Whitney powder-metal defects requiring accelerated inspections. Air New Zealand experienced up to 20% fleet unavailability at peak, forcing costly replacement engine and aircraft leases lasting 12-18 months beyond operational recovery.

Financial Impact:

• Overhaul costs for newer LEAP and GTF engines have risen twice as much as older CFM56 and V2500 engines since 2019
• Short-term engine lease rates exceeded $6,500 daily in recent transactions, up from $5,000 in 2022-23
• Full CFM56-5B overhauls exceed $10 million
• Delayed aircraft deliveries added an estimated $3.1 billion to global maintenance costs in 2025

Market Implications:

Tensions are escalating between airlines and manufacturers over pricing power. United CEO Scott Kirby confirmed engine makers are leveraging shortages for higher prices. While RTX reported 43% increased Pratt repair output and 23% faster turnaround times in Q2, financial relief for airlines remains distant as legacy lease commitments and elevated maintenance costs persist.