Airlines Resume Flights with Grounded Jets, but Engine Costs Persist

Airlines Resume Flights Amid Lingering Engine Cost Challenges

Airlines worldwide are gradually returning previously grounded jets to service, yet the financial repercussions of an extended engine crisis continue to burden the industry. While operational hurdles related to aircraft availability are being addressed, the persistent costs associated with engine maintenance and repairs remain a significant challenge, driven by technical defects and ongoing supply chain disruptions.

Technical Setbacks and Operational Impact

The crisis originated from durability issues in newer aircraft engines, notably a powder-metal defect in Pratt & Whitney models that necessitated accelerated inspections and removals. These technical problems were exacerbated by shortages in labor, parts, and repair capacity, compelling airlines to ground fleets and incur substantial operational disruptions. For instance, Air New Zealand experienced engine problems that sidelined up to 20% of its fleet at the peak of the crisis. To maintain its flight schedule, the airline resorted to leasing additional aircraft and engines, a strategy that, according to Chief Executive Nikhil Ravishankar, will take another 12 to 18 months to fully unwind. The associated costs have only been partially mitigated by supplier compensation.

Similarly, GOL Linhas Aéreas faced significant operational setbacks, grounding Boeing 737 MAX jets due to technical issues and soaring maintenance expenses. This led to 900 flight cancellations and disrupted travel for approximately 250,000 passengers, highlighting the broader economic impact on airline operations.

Rising Maintenance Costs and Industry Response

To sustain flight operations, carriers have increasingly relied on leasing replacement engines and aircraft, resulting in elevated expenses for overhauls, parts, and leases even as the number of grounded jets declines. Compounding these challenges are delays in new aircraft deliveries from manufacturers such as Boeing and Airbus, which have forced airlines to keep older jets in service longer than anticipated, thereby incurring higher engine maintenance costs.

An analysis of U.S. Transportation Department data by Reuters illustrates the scale of the issue. Among six major U.S. airlines, spending on engine labor, repairs, and materials surged approximately 68% between 2019 and 2025, while flight hours increased by only 10%. In the first quarter of this year alone, maintenance expenditures in these categories rose 17% compared to the previous year, despite flight hours growing by less than 2%. Although the data do not specify exact causes, industry experts attribute the rise to a combination of technical difficulties, aging fleets, and deferred maintenance.

The financial strain has elicited varied responses across the sector. Some carriers, such as LATAM Airlines, have adjusted their financial outlooks upward, while others, including Brussels Airlines, have paused expansion plans amid high fuel prices and operational headwinds. The industry is also facing intensified scrutiny regarding reliability and reputation, placing additional pressure on airlines to balance cost management with customer expectations.

Challenges for Engine Manufacturers and Future Outlook

Engine manufacturers have largely refrained from public comment on the ongoing issues. However, analysts note that newer engine models, while offering improved fuel efficiency, entail significantly higher overhaul costs due to limited repair options and a scarcity of used parts. According to data from Ascend by Cirium, overhaul and mandatory parts-replacement expenses for newer LEAP and GTF engines—used predominantly on Airbus A320neo and Boeing 737 MAX aircraft—have approximately doubled since 2019 compared to older engine models.

As airlines continue to navigate the complexities of shedding costly leases and adapting to persistent technical and supply chain challenges, the enduring effects of the engine crisis remain a defining factor in the financial landscape of global aviation.