Engine lease rates for current-generation equipment are starting to soften a bit from historic peaks. While still exceptionally strong, rates are responding to incremental shifts in airline demand and fleet capacity.
While aircraft engine lease rates remain near historic highs, the market is beginning to see current-generation assets like the CFM56 soften from their peak.
Aviation Week's MRO Podcast
While aircraft engine lease rates remain near historic highs, the market is beginning to see current-generation assets like the CFM56 soften from their peak.
TL;DR
This episode previews the upcoming Engine Leasing, Trading & Finance (ELTF) Europe conference, evaluating the shifting landscape of commercial aircraft engine finance [1] — James Pozzi "Modern lessors are becoming integrated strategic partners for airlines, actively buying aftermarket businesses to build risk-sharing mainte…" 05:16 . Aviation Week’s James Pozzi and Alex Derber analyze whether persistent engine supply constraints are finally easing, highlighting that lease rates for current-generation narrowbodies have likely peaked [2] — Alex Derber "Engine lease rates for current-generation equipment are starting to soften a bit from historic peaks. While still exceptionally strong, rat…" 03:21 . They also discuss how top lessors are evolving from transactional asset providers into strategic MRO partners [1] — James Pozzi "Modern lessors are becoming integrated strategic partners for airlines, actively buying aftermarket businesses to build risk-sharing mainte…" 05:16 . The single most useful takeaway is that lessors are increasingly buying up aftermarket businesses to provide flexible risk-sharing maintenance models during ongoing OEM engine delivery delays [1] — James Pozzi "Modern lessors are becoming integrated strategic partners for airlines, actively buying aftermarket businesses to build risk-sharing mainte…" 05:16 .
Aviation Week's James Pozzi and Alex Derber preview the 2026 Engine Leasing, Trading & Finance (ELTF) Europe conference, analyzing current lease rate trends, the rise of lessor-aftermarket collaboration, and the impact of airline failures like Spirit on engine availability.
No indexed bits in this chapter.
This episode
Factual claims made this episode, and whether a source was named.
Engine leasing lease rates for current-generation aircraft and engines are starting to soften a little bit, though they remain higher than historical averages.
The engine market expects GTF-related aircraft-on-ground (AOG) issues to stop or resolve around 2027.
Approximately 50% of the global commercial aviation fleet is currently leased rather than owned.
Spirit Airlines recently went through high-profile financial difficulties/failure in 2026, releasing V2500 engines onto the market from its A320 classic fleet.
Cyprus Airways currently operates a fleet of six aircraft, consisting of four Airbus A220s and two A320 classics.
This episode
An annual industry conference in London focusing on engine leasing, trading, and finance dynamics.
An aviation asset leasing company known for focusing on the CFM56 and CF34 engine families.
A small Mediterranean carrier navigating GTF engine exposure on its Airbus A220 fleet.
A joint venture aircraft engine leasing company whose CEO, Bobby Janagan, is speaking at the conference.
An engine leasing company headed by Roger Welaratne, representing a pure-play engine leasing business.
A US low-cost carrier whose recent bankruptcy or failure has released V2500 engines into the market.
A major current-generation narrowbody aircraft engine whose lease rates are showing signs of softening.
Pratt & Whitney's Geared Turbofan engine, which has faced well-documented durability and maintenance issues.
An engine variant utilized on the Airbus A320 classic fleet, impacted by recent airline transitions.
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