Speaker
Alex Derber
Appearances over time
2 episodes
Episodes
2
Podcasts
Quotes & moments
Analytical firms and agencies have updated their models to treat the geopolitical instability in the Middle East as a persistent headwind lasting at least through the end of 2026.
The steep rise in oil has forced Malaysia Aviation Group to aggressively expand its non-flight MRO divisions to buffer against thin airline margins.
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.
Modern lessors are becoming integrated strategic partners for airlines, actively buying aftermarket businesses to build risk-sharing maintenance models. Today, securing asset access is as valuable as outright ownership.
The high-profile failure of Spirit Airlines in the US is releasing classic V2500 engines onto the market. This supply influx could test the leasing dynamics for older narrowbodies like the A320 classic.
Commercial aviation aftermarket activity remains resilient despite the ongoing Middle East conflict. Major engine suppliers expect any tangible financial or statistical downturn to lag by quarters, possibly holding off until 2027.
Analysts have shifted from predicting a short-term disruption to bracing for a structural problem lasting through the year. Airlines face a toxic combination of elevated financing costs, expensive jet fuel, and depressed discretionary travel demand.
Following the rejection of recent peace plans, jet fuel prices soared to a range of $150 to $200. This massive jump from historical averages of $85 to $90 is causing carriers to cancel routes and scramble for margin protection.
Faced with expensive fuel, airlines will selectively park their older, less efficient aircraft and prioritize modern fleets. This shift could quickly flood the market with used serviceable material (USM), reshaping the aftermarket engine backlog.
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