Airlines are gradually bringing aircraft affected by the years-long engine crisis back into service, but the financial impact of the disruptions is proving more difficult to reverse.

Air New Zealand illustrates how the costs can persist even as fleet availability improves. Engine problems at one stage left up to 20% of the airline’s fleet unavailable, prompting it to lease additional aircraft and engines to maintain its schedule.

Although availability has improved significantly, Chief Executive Nikhil Ravishankar told Reuters that it could take another 12 to 18 months to unwind the additional leases and associated expenses. Supplier compensation is expected to offset only part of those costs.

The disruption was driven by durability issues affecting some newer-generation engines and a powder-metal problem at Pratt & Whitney that led to accelerated inspections and engine removals. Labor shortages, limited parts availability and constrained repair capacity further complicated the situation.

To keep aircraft flying, airlines turned to leased engines and replacement aircraft. As a result, they have continued to face elevated leasing, parts and overhaul expenses even as the number of grounded aircraft declines.

Aircraft delivery delays from Boeing and Airbus have added another layer of pressure. With new jets arriving later than planned, airlines are keeping older aircraft in operation for longer and in some cases carrying out engine maintenance that had previously been expected to be avoided.

A Reuters analysis of U.S. Transportation Department data found that six major U.S. airline operations reported spending roughly 68% more on engine labor, aircraft-engine repairs and engine materials in 2025 than in 2019. Over the same period, their flight hours increased by about 10%.

The latest available data showed the trend continuing. Spending in the three categories rose 17% year-on-year in the first quarter, while flight hours increased by less than 2%. Maintenance costs can vary depending on engine age, accumulated flight cycles, fleet-management decisions and the timing of shop visits, when engines are removed for inspection or repair.

The Transportation Department figures do not specify the reasons behind the increase. GE Aerospace, Safran and RTX did not respond to requests for comment, while Rolls-Royce declined to comment.

Pratt & Whitney’s geared-turbofan engines demonstrate the disparity between falling groundings and rising maintenance demands. Aircraft grounded because of issues involving the engines fell 25% in the first half of the year. However, the share of heavier PW1100G repair work in the second quarter was 14 percentage points higher than a year earlier.

Recent regulatory filings from United Airlines and American Airlines also showed higher maintenance expenses during the first half, with engine overhaul work contributing to the increase.

Parts and materials typically represent about 60% of the direct cost of an overhaul for a single-aisle aircraft engine, according to consultancy Oliver Wyman. While newer engines provide fuel-efficiency benefits, their maintenance can be more expensive because repair networks are less developed and supplies of used components remain limited, said Sam Sargent, a partner at the consultancy.

George Dimitroff, head of valuations at Ascend by Cirium, said overhaul and mandatory parts-replacement costs for newer LEAP and GTF engines have increased by roughly twice as much since 2019 as costs for older CFM56 and V2500 engines. LEAP and GTF engines power most aircraft in the Airbus A320neo and Boeing 737 MAX families.

Not all of the increase in maintenance spending is attributable to technical problems. As newer fleets mature, they naturally require more scheduled maintenance.

Leases Continue After Groundings End

Long engine shop visits are forcing airlines to rely on replacement engines for extended periods.

JetBlue Airways has said some Pratt & Whitney engines can require between 200 and 300 days to complete a shop visit. The airline has consequently increased its use of leased engines.

Transactions completed over the past year show short-term lease rates for some newer LEAP and PW1100G engines exceeding $6,500 per day, compared with about $5,000 per day in 2022-23, according to aviation consultancy IBA.

Austin Willis, chief executive of engine lessor Willis Lease Finance, told Reuters that airlines seeking replacement engines have frequently opted for leases of around three years, while shorter agreements are often extended. This can leave carriers paying lease costs even after their own engines have returned to service.

Older Aircraft Bring Higher Maintenance Bills

Keeping older aircraft in service also comes with significant costs. A complete overhaul of a CFM56-5B engine used on older Airbus A320-family aircraft can easily exceed $10 million, Willis said.

Oliver Wyman and the International Air Transport Association estimate that delayed aircraft replacements may have added around $3.1 billion to global airline maintenance costs in 2025.

Longer aircraft lifespans are also reducing the supply of cheaper used engine components. Industry officials and experts say fewer engines are being dismantled for spare parts, increasing prices for used components and making airlines more reliant on newly manufactured parts.

Airlines and Engine Makers Clash Over Costs

The rising maintenance burden has intensified disagreements between airlines and engine manufacturers over repair prices and pricing power.

At the International Air Transport Association’s annual meeting in June, United Airlines Chief Executive Scott Kirby was asked whether engine manufacturers had excessive pricing power and were using supply shortages to charge airlines more. His response was: “Yes and yes.”

Engine manufacturers argue that developing new technologies requires billions of dollars of investment and that engines are often sold at significant discounts initially, with manufacturers expecting to recover those costs through parts and maintenance over the life of the product.

Safran Chief Executive Olivier Andriès said last month that increases in repair and spare-parts prices should remain moderate and reflect higher supplier costs rather than an “abusive posture.”

GE Aerospace Chief Executive Larry Culp said last month that aircraft groundings related to LEAP engines had fallen to near zero. The company is also introducing upgraded components intended to extend the period engines can remain in service before major maintenance is required.

RTX said it is working to improve engine durability and expand repair capacity. The company reported that Pratt & Whitney’s PW1100G repair output increased 43% in the second quarter from a year earlier, while turnaround times fell 23%.

For airlines, however, the financial burden is not disappearing as quickly as grounded aircraft.

“The fact that AOGs (aircraft on ground) have come down, that doesn't change the maintenance cost,” Willis said.

Source: Reuters News

DUBLIN: Aircraft leasing company Avolon has announced a sale-and-leaseback agreement covering up to seven Boeing 737-8200 aircraft with Indian airline Akasa Air.

Under the arrangement announced on August 14, 2026, Akasa Air will sell aircraft from its existing order book to Avolon and lease them back. The structure allows the airline to release capital for other business needs while continuing to operate the aircraft.

The Boeing 737-8200, also known as the 737-8-200, is the highest-density configuration of the Boeing 737 MAX 8 family. The aircraft is certified to accommodate as many as 210 passengers.

Akasa Air operates the aircraft with 197 seats in a single-class configuration. The Indian carrier currently has 17 Boeing 737-8200 aircraft in its fleet.

Akasa Air became the first airline in Asia to operate the 737-8200 in 2023. The latest transaction will allow the carrier to maintain operational use of the aircraft while strengthening its financial flexibility as it continues to expand.

Source: Aero time

PARIS: Cabin crew working for British low-cost airline EasyJet in France began a two-day strike on Saturday, demanding better working conditions and more predictable schedules.

The walkout was called by unions representing EasyJet’s France-based cabin crew after negotiations over employee schedules ended without an agreement, French broadcaster BFMTV reported.

Unions said unpredictable working patterns had placed significant physical and mental strain on employees. They are seeking changes aimed at improving working conditions for cabin crew.

The industrial action is expected to disrupt EasyJet operations across France, with around 100 flights scheduled for the weekend reportedly canceled as a result of the strike.

Reports put participation among EasyJet cabin crew in France at 68%, highlighting the scale of the labor action.

The strike is scheduled to continue for two days as unions press the airline for changes to scheduling practices and broader improvements to working conditions.

Source: Anadolu Ajansı

RIYADH, Saudi Arabia: Saudi low-cost airline flynas has added a new Airbus A320neo to its fleet, supporting the carrier’s expansion strategy while introducing another aircraft equipped with its latest-generation cabin.

The latest delivery brings the flynas fleet to 68 Airbus aircraft, comprising 62 A320neo jets, two A330s and four A320ceo aircraft.

The aircraft is the second in the airline’s fleet to feature the new-generation cabin, which was introduced earlier this year. The cabin is designed to improve passenger comfort while supporting greater operational efficiency and lower fuel consumption.

The new seats, developed in partnership with Safran, include integrated smartphone and tablet holders, high-speed USB-A and USB-C charging ports with a 60-watt capacity, larger meal tables, dedicated storage for books and magazines, and coat hooks.

Premium-class seats also feature additional legroom, adjustable headrests and a center-seat divider aimed at providing greater comfort for passengers.

The A320neo’s improved fuel efficiency compared with previous-generation aircraft is expected to reduce fuel consumption and operational emissions per seat. The addition therefore supports flynas’ wider sustainability program alongside its fleet growth plans.

The latest aircraft also reflects the airline’s efforts to enhance the onboard experience as it expands its network and responds to growing demand for air travel in Saudi Arabia.

Source: QCAA

DUBAI: Air Arabia reported a 51% decline in first-half net profit to AED 374 million ($102 million), as the Middle East and North Africa’s largest low-cost airline faced significant operational and cost pressures from the ongoing regional conflict.

For the six months ended June 30, 2026, revenue fell 1% to AED 3.48 billion, compared with AED 3.52 billion during the same period last year.

The airline carried more than 8.7 million passengers across its operating hubs, a 14% year-on-year decline. Despite the reduction, its average seat load factor remained at 83%, indicating continued demand for its services despite disruptions to operations.

The impact was more pronounced in the second quarter. Net profit dropped 77% to AED 96 million, while revenue declined 3% to AED 1.68 billion. Passenger traffic fell 23% to more than 3.9 million, reflecting reduced capacity, while the average seat load factor stood at 81%.

Air Arabia said its performance was significantly affected by the regional conflict, which began in February and disrupted aviation operations throughout the remainder of the first half.

Multiple airspace closures, temporary operational restrictions and reduced capacity affected the airline’s network, while record-high fuel prices added to operating costs.

Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said the airline’s ability to remain profitable despite the disruption demonstrated the resilience of its business model and financial position.

He said the carrier focused on preserving network connectivity, adapting operations to changing conditions and maintaining strict cost controls while protecting operational efficiency.

Despite the difficult operating environment, Air Arabia continued expanding its fleet and network during the first half of the year.

The airline added six aircraft, bringing its fleet to 96 owned and leased Airbus A320 and A321 aircraft. It also introduced five new routes across its hubs in the UAE, Morocco, Egypt and Pakistan.

In June, Air Arabia was named “Most Sustainable Low-Cost Airline in the MENA Region 2026” by World Finance Magazine as part of its annual Sustainability Awards Programme.

Sheikh Abdullah said the airline remained confident in its underlying business strength as market conditions improve. He added that Air Arabia would continue focusing on responsible network expansion, financial discipline and its value-focused offering while seeking to create sustainable long-term value for stakeholders.

Source: TradeArabia

Turkish Airlines will expand its network in mainland China with the launch of scheduled flights to Chengdu, the capital of Sichuan Province, from November 11, 2026.

Chengdu will become the airline’s fourth destination in mainland China after Beijing, Shanghai and Guangzhou. The new service will provide a direct link between the Chinese city, Türkiye and Turkish Airlines’ wider international network.

With a population of more than 21 million, Chengdu is one of China’s major metropolitan centers and an important hub for trade, logistics and finance. The city is also home to multinational companies operating in sectors including electronics, automotive, aviation, biotechnology and artificial intelligence.

The city has also gained global recognition for its culinary culture. UNESCO has designated Chengdu a “City of Gastronomy,” while attractions such as the Chengdu Research Base of Giant Panda Breeding draw millions of visitors each year.

Turkish Airlines CEO Ahmet Olmuştur said China remains an important strategic market for the carrier and that the Chengdu service would further strengthen its presence in the country.

He said the new route is expected to support stronger commercial, cultural and tourism connections between Türkiye and China.

Turkish Airlines will operate three weekly flights from Istanbul to Chengdu on Wednesdays, Fridays and Sundays. Return services will operate on Mondays, Thursdays and Saturdays.

Flights will serve Chengdu Tianfu International Airport using Boeing 787-9 Dreamliner aircraft. Each aircraft will offer 300 seats, comprising 30 Business Class and 270 Economy Class seats.

To mark the route launch, Turkish Airlines is offering promotional fares starting at $540 for Economy Class and $1,991 for Business Class for travel between Istanbul and Chengdu. The airline said fares are available through its official website and may vary at sales offices and travel agencies.

Source: TradeArabia