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Rising Engine Values Spur Aircraft Teardowns and Strain Freighter Supply

January 22, 2026By ePlane AI
Rising Engine Values Spur Aircraft Teardowns and Strain Freighter Supply
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Engine Values
Aircraft Teardowns
Freighter Supply

Rising Engine Values Drive Early Aircraft Teardowns and Strain Freighter Supply

The aviation industry is witnessing a significant shift as engine lease rates now exceed the value of entire aircraft, prompting earlier-than-expected teardowns and tightening the supply of feedstock for freighter conversions. This emerging dynamic is compelling air cargo operators to rethink their fleet strategies amid soaring engine costs and a shrinking pool of available aircraft.

Early Teardowns and Market Shifts

Recent analysis from Visual Approach Analytics reveals that aircraft are being dismantled at unprecedentedly young ages, driven by the fact that engines alone can be worth more than the complete airframe. Courtney Miller, Managing Director at Visual Approach, emphasized this shift by questioning whether six-year teardowns should come as a surprise when two engines surpass the combined value of the aircraft. Developed in collaboration with ISTAT-certified appraiser Gueric Dechavanne, the report underscores a fundamental departure from traditional fleet management timelines, signaling a new market reality.

This phenomenon is especially pronounced among popular narrowbody models such as the Boeing 737NG, Airbus A321, and Boeing 757. The scarcity of engines is creating bottlenecks in maintenance, repair, and overhaul (MRO) operations, which in turn drives up short-term lease prices. Consequently, aircraft that would have been earmarked for future freighter conversion are increasingly being parted out prematurely, further constricting the supply of viable conversion candidates and intensifying challenges for cargo operators.

Broader Industry Implications and Market Responses

The surge in engine values is reverberating beyond the cargo sector, affecting the wider aviation industry. Demand for legacy engine parts has surged, prompting operators and MRO providers to reassess procurement strategies amid material shortages. This environment has fueled growth in the commercial aftermarket, with companies such as GE Aerospace experiencing record stock valuations in December 2025. Analysts have upgraded GE Aerospace’s outlook, citing strong aftermarket demand, increased engine output, and the resilience of its LEAP engine family, despite ongoing supply chain and production challenges.

For the air cargo sector, where converted freighters constitute a substantial portion of narrowbody capacity, these developments present significant operational challenges. Operators face the dual pressures of escalating engine costs and a diminishing inventory of aircraft suitable for conversion. While some have already begun adjusting their fleet and procurement approaches, others are only now confronting the full implications of this evolving market landscape.

As global air traffic demand remains robust, the MRO market is gaining momentum, offering new opportunities for aftermarket providers. Nevertheless, the tension between rising engine values and limited aircraft availability is expected to persist, continuing to influence strategic decisions across the cargo and maintenance sectors in the near term.

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IATA Identifies Supply Chain Disruptions as Aviation’s Primary Challenge

IATA Identifies Supply Chain Disruptions as Aviation’s Primary Challenge

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Lufthansa launches major A380 cabin upgrade

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Cathay Pacific A321neo Returns to Kaohsiung After Suspected Engine Oil Leak

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IATA Warns Supply Chain Issues Will Continue to Affect Airlines

IATA Warns Supply Chain Issues Will Continue to Affect Airlines

IATA Warns Supply Chain Issues Will Continue to Affect Airlines Persistent Disruptions Impacting Global Aviation The International Air Transport Association (IATA) has issued a stark warning that ongoing supply chain disruptions will continue to pose significant challenges for the global airline industry. Speaking at the Changi Aviation Summit in Singapore, IATA Director General Willie Walsh highlighted the enduring nature of these operational difficulties, which have persisted since the onset of the COVID-19 pandemic. Airlines worldwide have struggled with delays and shortages as major aircraft manufacturers, including Airbus and Boeing, along with engine producers such as GE Aerospace and Pratt & Whitney, face continued obstacles in sourcing critical components and maintaining production schedules. These issues have been further compounded by geopolitical tensions and broader economic uncertainties, factors that analysts believe will extend the duration of supply chain bottlenecks. Consequences for Industry Growth and Response Measures The repercussions of these disruptions are evident across the aviation sector. Delays in aircraft deliveries and maintenance have slowed the pace of traffic growth, with IATA noting that after a robust post-pandemic recovery, industry expansion has now reverted to historical norms, in part due to these supply constraints. In response, some industry stakeholders are taking proactive measures to enhance competition and stability. Notably, CFM International, a prominent engine manufacturer, has extended its aftermarket competition agreement with IATA through 2033. This initiative aims to encourage greater competition in aircraft maintenance and repair services, potentially mitigating some operational challenges. Despite these efforts, IATA underscores the necessity for coordinated action among airlines, manufacturers, and regulators. The association stresses that addressing the root causes of supply chain disruptions is essential to support the sector’s recovery and ensure its long-term resilience.
Jetstar A321 Returns to Nadi Due to Engine Issue, Flight Cancelled

Jetstar A321 Returns to Nadi Due to Engine Issue, Flight Cancelled

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Aviation Industry Faces Growth and Geopolitical Challenges

Aviation Industry Faces Growth and Geopolitical Challenges

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