Widebody Aircraft Engine Values Have Risen
Supply constraints and aircraft production delays drove up engine market values through the second half of 2026.
Updated on Oct. 6, 2026 in Investing
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Widebody aircraft engine values have climbed globally as persistent production delays force airlines to retain existing fleets longer. This increased demand for spare engines, coupled with limited market availability, has tightened supply across the sector.
Why it matters
The limited availability of spare engines and high demand for maintenance, repair, and overhaul services have restricted supply, forcing operators to pay premiums to keep aircraft in service. These market conditions underscore the ongoing difficulty airlines face in modernizing fleets amid original equipment manufacturer delays.
IBA reported an 11% average lease rate increase for CFM56-5B/3 PIP engines and a 5% average market value rise for CF34-8E models. Conversely, V2500-A5 engines saw average market values and lease rates fall by 7% and 6%, respectively.
The players
IBA
IBA is an aviation market intelligence and advisory firm that provides data, valuation, and consulting services for the global aerospace industry.
The details
Production bottlenecks have created a scenario where feedstock availability exerts downward pressure on specific models while simultaneously driving up the value of widebody assets. The industry is seeing divergent performance as narrowbody and regional segments react to unique supply chain pressures.
Timeline
2023 marked the beginning of tracked GE90-115B value growth.
September 2026 served as the data collection period for regional engine rates.
H2 2026 served as the reporting period for the engine and lease rate update.
Market Dynamics
The divergence in engine values follows the patterns established in the IBA Engine and Lease Rate Update H2 2026 market analysis. This trend reflects structural shifts as the industry navigates long-term supply chain constraints and fluctuating demand for engine maintenance.
Investors and lessors should monitor how engine-specific performance affects portfolio yields and overall aircraft asset valuations. The current environment necessitates a nuanced strategy, as lease rates and market values show significantly different trajectories depending on the engine model.
The takeaway
The aviation engine market is currently defined by significant performance gaps between asset classes due to production bottlenecks. Stakeholders should prioritize models with limited supply while preparing for uneven market stabilization.
Further reading
For broader trends on asset valuation, see the Investing section.
Source note: This article includes information reported by American Journal of Transportation | AJOT | 1-800-599-6358.
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Do you expect the cost of air travel to keep rising due to supply chain issues?
