Why Aircraft Engine Values Are Rising Faster Than Aircraft Values (2026): Market Analysis, Lease Rates, Residual Values & Investment Outlook | Safe Fly Aviation
Why Aircraft Engine Values Are Rising Faster Than Aircraft Values (2026): Market Analysis, Lease Rates, Residual Values & Investment Outlook
The definitive guide to the engine aftermarket: supply shortages, MRO bottlenecks, LLPs, USM, and why engines are outperforming aircraft as aviation assets
Why Aircraft Engine Values Are Rising Faster Than Aircraft Values — 2026
In a market where aircraft values have remained under pressure, one asset class has quietly outperformed everything else — the aircraft engine. While airframes depreciate, engines have become the new gold standard in aviation assets, with values and lease rates rising faster than any other component of the commercial aircraft ecosystem.
Industry analysis consistently points to prolonged MRO bottlenecks, spare engine shortages, delayed aircraft deliveries, and constrained supply chains as key reasons engine values and lease rates have risen faster than aircraft values.[1]
This comprehensive guide explores why engines have become aviation's most valuable assets, how an aircraft can lose value while its engines appreciate, and why investors are increasingly focusing on engines rather than airframes. For aircraft owners, lessors, financiers, and investors, understanding engine economics is now essential.
Key Takeaways
- Engine values are rising faster than aircraft values — driven by supply shortages, MRO bottlenecks, and spare engine scarcity
- Engines can represent 40–60% of a mature aircraft's total value — and on older types, engines can be worth more than the airframe
- LLPs (Life-Limited Parts) can constitute 40–60% of an engine's total value
- Engine lease rates have skyrocketed — GE90-115BL engines now lease for $170,000–$185,000 per month
- Aircraft teardowns are increasing — dismantling older aircraft for engines and parts can be more profitable than continued operation
- MRO turnaround times have doubled — from 60–90 days pre-COVID to 120–180+ days in 2026
- Global engine MRO market valued at $35–40 billion annually, projected to reach $50+ billion by 2035
Historical Perspective: How Engine Values Have Evolved
The relationship between engine values and aircraft values has changed dramatically over the past 25 years. Understanding this evolution provides critical context for today's market dynamics.
The timeline reveals a clear trend: engine values have become increasingly dominant as aircraft have aged and engine technology has advanced. The introduction of new engine families (LEAP, GTF) has further accelerated the value gap between older and newer engines.
Understanding Aircraft Value: The Asset Breakdown
To understand why engine values are rising faster than aircraft values, we first need to understand how aircraft value is distributed across different components.
| Component | % of Total Aircraft Value (New) | % of Total Aircraft Value (Mature) | Value Trend (2019–2026) |
|---|---|---|---|
| Engines | 25–30% | 40–60% | ↑ Rising |
| Airframe | 40–50% | 25–35% | ↓ Falling |
| Landing Gear | 8–12% | 8–12% | → Stable |
| APU | 3–5% | 3–5% | → Stable |
| Avionics | 8–12% | 3–8% | ↓ Falling |
| Interior | 5–10% | 2–5% | ↓ Falling |
Source: IBA Group, industry data. Values are approximate and vary by aircraft type.
Did You Know?
A GE90 fan blade is approximately the height of an adult person. Each blade is precision-engineered from titanium and composites, with a single blade costing more than a luxury car.
Why Airframes Depreciate Faster Than Engines
The fundamental difference between airframes and engines explains why their value trajectories diverge so dramatically.
Airframe Depreciation Factors
- Metal Fatigue: Airframes are subject to cumulative fatigue from pressurisation cycles
- Corrosion: Aluminum airframes are susceptible to corrosion over time
- Obsolete Cabins: Passenger expectations evolve, making older cabins less desirable
- Regulatory Changes: New noise, emissions, and safety standards can ground older aircraft
- Fuel Efficiency: Older aircraft are less fuel-efficient than newer models
- Non-Portable: An airframe is tied to its specific type and cannot be redeployed
Engine Value Retention Factors
- Overhaul Resets Life: Engine life can be extended indefinitely through overhauls
- LLP Replacement: Critical parts can be replaced, extending engine life
- Modular Repairs: Engines can be repaired in modules, reducing overhaul costs
- Transferable: Engines can be moved between aircraft types
- Continuous Demand: Spare engines are always in demand
- USM Value: Used parts retain significant value
The Engine Asset Lifecycle
Understanding the lifecycle of an aircraft engine is essential for investors, lessors, and operators. Each stage creates different value opportunities.
How an Engine Is Valued: Key Metrics
Engine valuation is a complex discipline that considers multiple factors. Aviation finance professionals use a variety of value concepts to assess engine worth.
Engine Value Types
- Residual Value: The remaining value after depreciation
- Market Value: The current market price for a comparable engine
- Base Value: The theoretical value in a balanced market
- Current Market Value: The actual value in today's market
- Fair Market Value: The value in an arm's-length transaction
- Half-Life Value: Value with 50% of LLP life remaining
- Lease-Adjusted Value: Value considering existing lease obligations
- Liquidation Value: Value in a forced sale
- Green-Time Value: Value of an engine with full LLP life remaining
- Core Value: Value of the engine core (excluding LLPs)
Did You Know?
One GE90 engine can cost more than a Boeing 737-200 airframe. The GE90-115BL lists at $32+ million, while a 737-200 airframe can be valued at $5–10 million.
The Complete Engine Value Drivers
Engine valuation professionals consider dozens of factors when assessing an engine's worth. These are the most critical:
| Driver | Description | Impact on Value |
|---|---|---|
| LLP Status | Remaining life on Life-Limited Parts | High — 40–60% of engine value |
| Cycles Remaining | Remaining cycles before next shop visit | High — determines overhaul timing |
| EGT Margin | Exhaust Gas Temperature margin | Medium — indicates engine health |
| Service History | Maintenance and overhaul records | High — traceability is critical |
| LLP Stack | Remaining life across all LLPs | High — composite value |
| Corrosion | Presence of corrosion | High — can reduce value significantly |
| FOD | Foreign Object Damage history | Medium — indicates potential issues |
| Borescope | Internal inspection results | High — reveals internal condition |
| OEM Support | Availability of parts and technical support | High — affects maintainability |
| Engine Program | Engine model and variant | High — some programs are more desirable |
| Traceability | Complete documentation of service history | High — required for certification |
| Paperwork | Maintenance records and certifications | Medium — affects marketability |
| Storage | Storage conditions and preservation | Medium — affects condition |
Source: IBA Group, industry data.
Top 10 Engines Holding Value Best (2026)
Based on market data, these engines have demonstrated the strongest value retention:
| Rank | Engine | Fleet Size | Value Trend | Key Strength |
|---|---|---|---|---|
| 1 | GE90-115BL | 2,800+ | ↑↑ Rising Fast | 777-300ER demand, limited supply |
| 2 | LEAP-1A | 6,000+ | ↑ Rising | A320neo dominance |
| 3 | LEAP-1B | 4,000+ | ↑ Rising | 737 MAX recovery |
| 4 | CFM56-7B | 15,000+ | ↑ Stable | Massive installed fleet |
| 5 | V2500-A5 | 8,000+ | ↑ Rising | Strong USM demand |
| 6 | Trent 700 | 2,500+ | ↑ Rising | A330ceo demand |
| 7 | GEnx | 3,000+ | ↑ Rising | 787 and 747-8 demand |
| 8 | CF34 | 5,000+ | → Stable | Regional jet demand |
| 9 | PT6A | 25,000+ | → Stable | Turboprop dominance |
| 10 | PW100 | 8,000+ | → Stable | Regional turboprop demand |
Source: IBA Group, industry data.
Engine Lease Rates Have Skyrocketed
The combination of supply constraints and MRO bottlenecks has sent engine lease rates soaring. Some engines now lease for more than the aircraft they power.
| Engine | Approx. Monthly Lease Rate (2026) | Change vs. 2022 | Notes |
|---|---|---|---|
| GE90-115BL | $170,000–185,000 | +60% | High demand, limited supply |
| PW1100G (GTF) | ~$400,000 (pair) | +150% | Post-defect scarcity |
| CFM56-7B | $80,000–100,000 | +40% | Stable but elevated |
| V2500-A5 | $75,000–90,000 | +35% | Strong demand |
| Trent 700 | $85,000–110,000 | +50% | A330ceo demand |
Source: IBA Group, industry data. Lease rates are approximate.
Did You Know?
A pair of GTF engines can now lease for more than the entire A320neo airframe. The scarcity premium has made engines the most valuable component of the aircraft.
Engine Overhaul Costs: What to Expect
| Engine | Typical Overhaul Cost | Shop Visit Interval (Cycles) | Time on Wing | Typical Turnaround |
|---|---|---|---|---|
| CFM56-7B | $3–5M | 15,000–20,000 | 4–6 years | 120–150 days |
| CFM56-5B | $3–5M | 15,000–20,000 | 4–6 years | 120–150 days |
| LEAP-1A | $4–6M | 10,000–15,000 | 3–5 years | 90–120 days |
| V2500-A5 | $3–5M | 15,000–20,000 | 4–6 years | 130–160 days |
| PW1100G (GTF) | $5–8M | 10,000–15,000 | 3–5 years | 120–180 days |
| GE90-115BL | $8–12M | 12,000–18,000 | 4–6 years | 140–180 days |
Source: IBA Group, industry data. Costs are approximate.
Why Aircraft Are Being Bought Just for Their Engines
The economics of aircraft teardown have shifted dramatically. In many cases, dismantling an aircraft for its engines and parts is more profitable than keeping it flying.
Aircraft Types Frequently Torn Down for Engines
- 737 Classic: CFM56-3 engines remain in demand for cargo conversions
- 757: Rolls-Royce RB211 engines are valuable for freighter conversions
- 767: CF6-80C2 engines support cargo and military fleets
- A320ceo: CFM56-5B and V2500 engines are in high demand
- A330ceo: Trent 700 engines are valuable for spare support
- A340: CFM56-5C engines are scarce and valuable
- MD-80: JT8D engines still support some operators
- Fokker 100: Tay engines are still in demand
- CRJ/ERJ: CF34 engines are valuable for regional fleet support
Did You Know?
One GE90 engine can cost more than a Boeing 737-200 airframe. The GE90-115BL lists at $32+ million, while a 737-200 airframe can be valued at $5–10 million.
Case Study: The Economics of Aircraft Teardown
A real-world example illustrates why aircraft are being dismantled for their engines:
Teardown Economics — Airbus A320ceo (2005)
- Aircraft Purchase Price: $6–8 million
- Engine Value (2 × CFM56-5B, 50% life): $10–14 million
- Landing Gear: $0.8–1.2 million
- APU: $0.3–0.5 million
- Avionics & Components: $1–2 million
- Interior & Other: $0.5–1 million
- Total Part-Out Value: $12.6–18.7 million
- Net Profit: $4.6–12.7 million
This example demonstrates why aircraft teardowns are increasingly common. The engines alone can be worth more than the complete aircraft, creating a powerful financial incentive to dismantle.
The Rise of the Used Serviceable Material (USM) Market
As engine values have risen, the USM (Used Serviceable Material) market has grown significantly. USM components — including engines, modules, and LLPs — are now a critical source of parts for MRO providers and operators.
The USM market is driven by:
- Supply chain constraints: New parts are hard to source, driving demand for used parts
- Cost savings: USM can be 30–60% cheaper than new parts
- Green-time engines: Used engines with remaining life are valuable for operators
- LLP harvesting: Components with remaining life are extracted and sold
- Increased teardown activity: More aircraft are being dismantled for parts
The USM market is expected to continue growing, with demand driven by supply constraints, MRO backlogs, and the value of LLPs and green-time engines.
Regional Engine Demand Analysis
Engine demand varies significantly by region, driven by fleet composition, growth rates, and MRO capacity.
| Region | Engine Demand Level | Key Engine Types | MRO Capacity |
|---|---|---|---|
| North America | Very High | LEAP, CFM56, GE90 | Strong |
| Europe | High | LEAP, Trent XWB, V2500 | Strong |
| Middle East | Very High | GE90, GEnx, Trent 700 | Growing |
| China | Very High | LEAP, V2500, CFM56 | Expanding |
| India | High | LEAP, PW1100G, V2500 | Developing |
| Singapore | High | All types | Global hub |
| Africa | Medium | CFM56, V2500, CF34 | Limited |
| Latin America | Medium | CFM56, V2500 | Limited |
Source: IBA Group, industry data.
Major Engine Lessors Driving the Market
Engine leasing has become a significant part of the aviation finance ecosystem. These companies are major players in engine values and lease rates:
Key Engine Lessors
- GA Telesis: One of the largest engine lessors and USM suppliers
- Willis Lease Finance: Specialises in engine leasing and trading
- AerCap: The world's largest aircraft lessor, with significant engine portfolio
- Carlyle Aviation Partners: Major engine lessor and investor
- Magellan Aviation Group: Engine leasing and trading specialist
- ELFC (Engine Lease Finance Corporation): Pure-play engine lessor
- MTU Maintenance: OEM-affiliated MRO and engine lessor
These lessors drive pricing through their purchasing power and leasing activity. Their decisions significantly impact engine values and lease rates.
The Investor View: Engines as an Asset Class
Savvy investors are increasingly viewing engines as an attractive aviation asset class. How do engines compare to other asset classes?
| Asset Class | Return Profile | Liquidity | Volatility | Appreciation Potential |
|---|---|---|---|---|
| Aircraft Engines | High | Medium | Low-Medium | High |
| Complete Aircraft | Medium | High | Medium | Low-Medium |
| Ships | Medium | Medium | High | Low |
| Real Estate | Medium | Low | Low | Medium |
| Rail Locomotives | Medium | Low | Low | Low |
| Shipping Containers | Low-Medium | High | High | Low |
Source: Industry data. Returns are indicative.
Business Jet Engines: A Growing Market
Business jet engines represent a significant and growing segment of the engine market. Key business jet engines include:
Key Business Jet Engines
- GE Passport: Powers Bombardier Global 7500/8000
- Honeywell HTF7500: Powers Gulfstream G650
- Honeywell TFE731: Classic business jet engine family
- Rolls-Royce BR710: Powers Gulfstream G550 and Bombardier Global Express
- Rolls-Royce Pearl 700: Powers Gulfstream G700
- Pratt & Whitney PW300: Powers Falcon 7X and 8X
- Pratt & Whitney PW500: Powers Embraer Praetor 600
- Safran Arriel: Powers Airbus Helicopters
Helicopter Engines: A Specialised Market
Helicopter engines are a distinct market with unique value drivers:
Key Helicopter Engines
- RR300: Powers Robinson R66
- Safran Arriel: Powers Airbus Helicopters H125, H130
- Safran Makila: Powers Airbus Helicopters Super Puma
- Pratt & Whitney PT6B: Powers Bell 212
- Pratt & Whitney PW210: Powers Sikorsky S-76
- Rolls-Royce M250: Powers Bell 206 and MD Helicopters
- Safran Arrano: Powers Airbus Helicopters H160
- Klimov TV3-117: Powers Russian Mil Mi-8
- Klimov VK2500: Powers Mil Mi-28
Turboprop Engines: The Workhorses of Regional Aviation
Turboprop engines power regional and cargo fleets worldwide:
Key Turboprop Engines
- Pratt & Whitney PT6: The world's most popular turboprop engine (25,000+ units)
- Pratt & Whitney PW100: Powers ATR 42/72 and Dash 8
- GE Catalyst: New-generation turboprop for regional aircraft
- Honeywell TPE331: Powers the C-130 and other turboprops
- GE M601: Powers the Let L-410
- GE H80: Powers the Beechcraft King Air
- Pratt & Whitney PW127: Powers ATR 72
Global Engine MRO Market Size
The engine MRO market is one of the largest and fastest-growing segments of the aviation aftermarket.
| Year | Global Engine MRO Market (USD Billions) | Growth Rate |
|---|---|---|
| 2018 | $28.5 | — |
| 2020 | $25.0 | -12.3% |
| 2022 | $32.0 | +28.0% |
| 2024 | $37.5 | +17.2% |
| 2026 | $42.0 | +12.0% |
| 2035 (Projected) | $55.0+ | +5.0% (CAGR) |
Source: Oliver Wyman, IBA Group, industry data.
Future Technologies Affecting Engine Values
Emerging technologies will shape the future of engine values:
Key Future Technologies
- Open Fan / RISE: CFM's Revolutionary Innovation for Sustainable Engines
- Rolls-Royce UltraFan: Next-generation geared turbofan technology
- Hydrogen Propulsion: Airbus's ZEROe program and hydrogen engine development
- Hybrid-Electric: Pratt & Whitney's hybrid-electric programs
- Electric Propulsion: Urban air mobility and regional electric aircraft
- SAF Compatibility: Sustainable Aviation Fuel compatibility
- Advanced Materials: Ceramic matrix composites and additive manufacturing
These technologies will affect existing engine values. Legacy engines may see reduced demand as new technologies enter service, while next-generation engines will command premium values.
Top 10 Reasons Engine Prices Keep Rising
- Supply Chain Constraints: Titanium shortages, forging capacity, and semiconductor issues
- MRO Bottlenecks: Overhaul backlogs and extended turnaround times
- GTF Defect: Pratt & Whitney manufacturing defect created scarcity premium
- LEAP and GTF Durability: Early durability challenges increased demand for spares
- Airbus and Boeing Delays: Aircraft delivery delays keep older fleets flying longer
- LLP Replacement Demand: LLPs wear out and need replacement, creating recurring demand
- USM Scarcity: Used parts are increasingly hard to find
- Labour Shortages: Skilled labour shortages affect MRO capacity
- Investor Demand: Institutional investors are acquiring engines as asset class
- Geopolitical Events: Sanctions affecting Russian aviation reduce available supply
How Safe Fly Aviation Helps
At Safe Fly Aviation, we understand the critical role that engines play in aircraft valuation. Our team provides comprehensive advisory services for aircraft owners, lessors, and investors:
- Aircraft Acquisition Support: We help clients identify and evaluate aircraft with strong engine economics
- Aircraft Sales: We assist with the sale of aircraft and engines, maximising value for sellers
- Aircraft Sourcing: We source aircraft and engines that meet specific technical and financial criteria
- Aircraft Valuation: We provide independent valuations that consider engine condition, LLP life, and market trends
- Engine Sourcing: We help clients source engines, including spares, USM, and green-time engines
- Pre-Purchase Inspection Coordination: We coordinate technical inspections and due diligence
- Technical Due Diligence: We assess engine condition, maintenance records, and shop visit forecasts
- Aircraft Asset Consulting: We provide strategic advice on aircraft and engine investment
- Global Aviation Advisory: We offer independent, expert advice on all aspects of aircraft ownership and investment
Whether you are buying, selling, or investing, Safe Fly Aviation provides the technical and financial expertise you need to make informed decisions in today's complex aviation market.
Aircraft Engine Intelligence & Advisory
Need insight into engine values, aircraft valuations, or acquisition strategy? Safe Fly Aviation provides data-driven intelligence for aircraft owners, lessors, and investors.
Speak with Our Aviation Intelligence TeamConclusion: Engines Are the New Gold Standard
For decades, aircraft were viewed as the primary aviation asset, with engines considered major components. That perspective has fundamentally changed. In today's market, engines increasingly determine an aircraft's economic value, financing potential, lease attractiveness, and end-of-life strategy. As delivery delays, MRO constraints, and demand for spare engines continue, the engine has become the centre of aviation asset management rather than just a part of the aircraft.
For aircraft owners, lessors, financiers, and investors, understanding engine economics is no longer optional. It is essential. The aircraft carries the engines — not the other way around. In many cases, the engines are worth more than the airframe.
As supply constraints persist, MRO backlogs grow, and the USM market expands, engine values are likely to continue their upward trajectory. The smart money is already flowing into engines, and for good reason.
At Safe Fly Aviation, we provide the expertise and market intelligence you need to navigate this complex market. Contact us today to learn how we can help you acquire, value, or invest in aircraft and engines.
Sources & References
- IBA Group — Engine Value and Lease Rate Update, H1 2026
- IBA Group — Engine and Lease Rate Update Article (March 2026)
- Business Insider Africa — GTF Engine Scarcity Analysis (May 2026)
- Oliver Wyman — MRO Spending Forecast 2025
- Cirium — Engine Fleet Data and Forecasts
- Aviation Week — Engine Aftermarket Report 2026
- GE Aerospace — Commercial Engine Portfolio
- CFM International — LEAP and CFM56 Programs
- Pratt & Whitney — GTF Engine Program Updates
- Rolls-Royce — Trent Family Investor Reports
- IATA — Industry Performance Reports
- Safe Fly Aviation — Market Intelligence Database 2026
Disclaimer: This report is based on public sources and industry data as of June 2026. Prices and values are indicative and subject to market conditions. Safe Fly Aviation provides independent aviation intelligence and advisory services.
Frequently Asked Questions
Why are aircraft engines worth so much?
Aircraft engines are worth so much because of their engineering complexity, certified life limits, continuous overhaul demand, and limited production. An engine can represent 40–60% of a mature aircraft's total value.
Can engines be worth more than the aircraft?
Yes. On older aircraft like the 737 Classic, 757, and some A320ceo models, the engines can be worth more than the airframe. This has led to increased aircraft teardown activity.
What are engine LLPs?
LLPs (Life-Limited Parts) are critical engine components like turbine disks and fan blades that have certified life limits. They can constitute 40–60% of an engine's total value.
Which engine holds value best?
The GE90-115BL is the best-performing engine for value retention, with values up 60% since 2023. The LEAP-1A and CFM56-7B also hold value exceptionally well.
What is the global engine MRO market size?
The global engine MRO market is valued at approximately $35–40 billion annually, with projections reaching $50+ billion by 2035.
What is green time?
Green time refers to the remaining life in an engine before its next scheduled overhaul. Engines with high green time (full LLP life) are significantly more valuable than those approaching their next shop visit.
Why are MRO backlogs so long?
MRO backlogs are driven by supply chain constraints, parts shortages, labour shortages, and increased demand for shop visits after the COVID-19 production ramp-down.
What is the USM market?
The USM (Used Serviceable Material) market comprises used aircraft and engine parts that have been certified for continued use. It is a critical source of components for MRO providers and operators.
Which engine families are most in demand?
The CFM56, LEAP, V2500, GE90, and Trent 700 are the most in-demand engine families, driven by large installed fleets, strong MRO support, and sustained demand for spare engines.
How can Safe Fly Aviation help with engine and aircraft acquisitions?
Safe Fly Aviation provides aircraft acquisition support, aircraft sales, aircraft sourcing, aircraft valuation, engine sourcing, pre-purchase inspection coordination, technical due diligence, and aircraft asset consulting.
