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Airlines face high costs despite improving jet availability
Airlines revive grounded jets as lingering engine costs continue to pressure finances amidst supply chain challenges
Airlines revive grounded jets as lingering engine costs continue to pressure finances amidst supply chain challenges
– Airlines are returning jets to service, but engine crisis costs remain high due to leasing and maintenance.
– Long repair times and delivery delays escalate expenses, forcing reliance on costly engine leases.
Engine crisis persists
While availability has improved, Chief Executive Nikhil Ravishankar noted that it may take 12 to 18 months to alleviate extra leases and related expenses.
The crisis stems from durability issues with certain engines and complications involving Pratt & Whitney’s powder-metal materials.
Airlines have incurred substantial costs for engine leasing and maintenance, which continue even as operations stabilize.
Delivery delays from Boeing and Airbus compound challenges, prolonging the service life of older jets and imposing unanticipated maintenance burdens.
Recent analysis reveals a 68% increase in U.S. airline spending on engine maintenance from 2019 to 2025, despite only a 10% increase in flight hours.
In the first quarter of this year, maintenance costs rose 17%, while flight hours increased less than 2%.
GE Aerospace indicated its earnings results reflect these pressures, while Safran and RTX did not comment on similar concerns.
Maintenance practices need to adapt due to rising overhaul costs, particularly for newer engine types like LEAP and GTF, which are significantly higher than older models.
Long repair times compel airlines to lease substitute engines, inflating operational expenses.
JetBlue has experienced repair durations exceeding 300 days, increasing reliance on leases.
In the past year, daily lease rates for some newer engine types reached over $6,500, compared to $5,000 previously.
Delays in aircraft retirements restrict the supply of affordable used parts, increasing dependency on new parts and overall costs.
Tensions are rising between airlines and manufacturers over repair pricing and availability.
Both GE and Safran have indicated improvements, yet the financial implications for airlines are expected to linger.
