Focus: Airlines get grounded jets flying again, but engine bills linger

• Air New Zealand, which had up to 20% of its fleet unavailable at peak, expects it will take 12-18 months to shed extra engine and aircraft leases even after groundings improved
• Overhaul costs for newer LEAP and GTF engines have risen about twice as much since 2019 compared to older CFM56 and V2500 engines, with replacement-engine lease rates exceeding $6,500 daily versus around $5,000 in 2022-23
• Delayed aircraft deliveries from Boeing and Airbus added an estimated $3.1 billion to global airline maintenance costs in 2025 by keeping older jets in service longer and reducing availability of cheaper used engine parts

Summary: Airlines Face Lingering Engine Maintenance Costs Despite Fleet Recovery

Airlines are successfully returning grounded aircraft to service, but face persistently high engine maintenance costs that could last 12-18 months longer, according to Reuters analysis.

Key Data Points:

• Engine-related spending at six major U.S. airline operations rose 68% between 2019-2025, while flight hours increased only 10%
• Q1 2025 engine spending up 17% year-over-year versus less than 2% increase in flying hours
• Air New Zealand had up to 20% of its fleet unavailable at peak
• Some Pratt & Whitney engines require 200-300 days for shop visits
• Short-term engine leases now exceed $6,500/day, up from $5,000/day in 2022-23
• Full CFM56-5B overhaul costs exceed $10 million
• Delayed aircraft replacements added approximately $3.1 billion to global maintenance costs in 2025

Main Companies Affected:

Engine manufacturers: RTX (Pratt & Whitney), GE Aerospace, Safran, Rolls-Royce

Airlines: Air New Zealand, United Airlines, American Airlines, JetBlue Airways

Aircraft manufacturers: Boeing, Airbus

Core Issues:

The crisis stems from durability problems in newer engines, particularly Pratt & Whitney's geared-turbofan powder-metal defects, forcing accelerated inspections. Airlines leased replacement engines and aircraft to maintain schedules. Boeing and Airbus delivery delays compound problems by keeping older jets in service longer than planned.

Market Implications:

Newer LEAP and GTF engine overhaul costs have risen twice as much as older models since 2019. Parts shortages are driving prices higher, with parts representing 60% of typical overhaul costs. Industry tensions are escalating over pricing power, with United CEO Scott Kirby directly criticizing engine makers for exploiting shortages.