Airlines Bring Grounded Jets Back as Engine Costs Continue to Rise

Post by : Saif

Airlines are gradually returning grounded aircraft to the skies after years of engine-related problems, but the financial burden created by the crisis continues to weigh on carriers.

Engine durability issues, shortages of parts and skilled workers, limited repair capacity and delays in new aircraft deliveries have forced airlines to spend heavily on maintenance and replacement engines.

Although aircraft availability has improved, airlines are still facing large bills linked to earlier disruptions.

Engine Problems Continue to Affect Airlines

Air New Zealand illustrates how the impact of engine problems can continue long after aircraft return to service.

At one stage, engine issues left up to 20% of its fleet unavailable. The airline had to lease additional aircraft and engines to maintain its flight schedule.

While availability has improved significantly, the airline expects it could take 12 to 18 months to reduce additional leases and related costs.

Supplier compensation is expected to cover only part of those expenses.

Newer Engines Bring Higher Repair Bills

Some newer aircraft engines have required heavier and more expensive maintenance.

Pratt & Whitney's geared turbofan engines have been affected by technical issues, including a powder-metal problem that led to accelerated inspections and engine removals.

Groundings linked to these engines declined during the first half of the year, but repair work has become more intensive for some engines.

In the second quarter, the share of heavier PW1100G repair work increased by 14 percentage points compared with the same period a year earlier.

Engine Spending Rises Faster Than Flight Activity

US Transportation Department data show how sharply engine-related costs have increased.

Across six major US airline operations, spending on engine labor, repairs and engine materials rose approximately 68% between 2019 and 2025.

During the same period, flight hours increased by only about 10%.

The latest available data showed the same trend. Engine-related spending increased 17% year-on-year in the first quarter, while flight hours grew by less than 2%.

Maintenance costs can vary depending on engine age, accumulated flight cycles, fleet decisions and the timing of inspections and repairs.

Read more: WestJet Confident About Boeing 737 MAX 10 Certification as Airline Expands Global Routes

Boeing and Airbus Delays Add Pressure

Delayed aircraft deliveries from Boeing and Airbus are also contributing to higher maintenance expenses.

When new aircraft arrive later than expected, airlines have to keep older jets in operation for longer periods.

This can lead to additional engine inspections, repairs and overhaul work that carriers had originally expected to avoid.

Replacement aircraft and engine leases can also remain in place even after the original grounding problem has eased.

New-Generation Engines Cost More to Overhaul

Newer engines provide important fuel-efficiency benefits, but their maintenance can be more expensive.

According to aviation consultancy Oliver Wyman, parts and other materials represent around 60% of the direct cost of a typical single-aisle engine overhaul.

New-generation engines also have fewer established repair options and fewer used parts available compared with older engine models.

Industry valuations indicate that overhaul and mandatory parts-replacement costs for newer LEAP and GTF engines have increased roughly twice as much since 2019 as costs for older CFM56 and V2500 engines.

Airlines Face Long-Term Maintenance Pressure

The return of grounded aircraft is easing some operational challenges, but airlines continue to face significant financial pressure from engine maintenance.

Higher overhaul costs, replacement-engine leases, parts shortages and delayed aircraft deliveries are likely to keep expenses elevated.

As newer aircraft fleets mature, airlines will also require more scheduled maintenance. This means engine-related spending could remain a major issue for carriers even as the number of grounded jets continues to decline.

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