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

Lufthansa has increased fuel loading on flights bound for Frankfurt Airport as a precautionary measure amid tighter jet fuel supplies caused by reduced pipeline capacity.

The airline said on Thursday that the move was intended to manage potential supply constraints at Germany’s largest aviation hub. Airport operator Fraport confirmed that routine maintenance was under way on a pipeline supplying jet fuel to the airport.

Fraport said the maintenance had been factored into its operational planning and was not expected to cause a fuel supply bottleneck. Alternative supply routes and sufficient storage capacity were helping to mitigate potential disruption.

“The airport's operational capability is therefore not affected,” Fraport said.

Lufthansa said it was not currently anticipating any flight cancellations as a result of the situation.

German newspaper Bild first reported the additional fuelling measures, citing internal instructions reportedly issued to Lufthansa pilots on selected routes. The practice, known as “tankering”, involves carrying more fuel than required for a flight so that an aircraft needs less or no refuelling at its destination.

According to Bild, the additional fuel carried by Airbus A320-family aircraft is limited to eight tonnes to ensure the planes can still be towed on the ground. The measures primarily affect short-haul services, although some long-haul flights are increasingly being included.

The precautionary steps are intended to give Lufthansa greater flexibility in managing its fuel requirements while pipeline maintenance continues at Frankfurt Airport.

Source: Reuters

Turkish Airlines has signed a strategic agreement with CFM International to strengthen engine maintenance capabilities and support the expansion of its Boeing 737 MAX fleet.

The long-term services agreement will cover the airline group's entire LEAP-1B engine fleet, including engines already ordered and delivered, spare engines, units installed on leased aircraft and potential future options. The combined total exceeds 600 engines operated by Turkish Airlines and its subsidiary, AJet.

The memorandum of understanding (MoU) was signed during a ceremony in Istanbul by Turkish Airlines Chairman of the Board and the Executive Committee, Prof. Murat Şeker; Turkish Technic CEO and Board Member, Mikail Akbulut; and Safran CEO Olivier Andriès. Safran is one of the two parent companies of CFM International.

The agreement also includes a material services arrangement to support the development of an engine maintenance, repair and overhaul (MRO) facility in Türkiye.

Şeker said the partnership would help Turkish Airlines accommodate fleet and network growth while improving operational efficiency. He added that the expanded services agreement would provide the technical expertise and long-term support required to develop LEAP engine maintenance capabilities.

Akbulut said the agreement would enable Turkish Technic to undertake comprehensive LEAP engine maintenance. He also reaffirmed the company's commitment to investing in engine services alongside its existing aircraft and component maintenance operations.

Andriès described the MoU as another milestone in a relationship with Turkish Airlines that has lasted nearly four decades. He said the agreement reflected both companies' ambitions to support the airline's growth and fleet expansion, while promoting an open MRO ecosystem offering flexible, competitive services to improve operational performance and control costs.

GE Aerospace Chairman and CEO H. Lawrence Culp Jr. also welcomed the agreement, highlighting Turkish Airlines' extensive international network and its confidence in CFM engines. He said the partnership would build on the companies' established relationship as the airline expands its Istanbul operations and engine maintenance capabilities.

Turkish Airlines currently operates 96 Boeing 737 Next Generation aircraft powered by CFM56-7B engines and 79 Boeing 737 MAX aircraft equipped with LEAP-1B engines.

CFM said it had delivered more than 10,000 LEAP engines during the 10 years since the engine entered service, with the fleet accumulating over 100 million flight hours. The manufacturer continues to introduce upgrades, including a high-pressure turbine durability kit designed to extend time on wing and a reverse bleed system (RBS).

The agreement is expected to strengthen Turkish Airlines' long-standing relationship with CFM International and support the integration of newly ordered Boeing 737 MAX aircraft into its expanding fleet. The planned engine MRO facility will also enhance Turkish Technic's ability to provide comprehensive maintenance services.

Source: Turkish Airlines

Oman Air has entered into a codeshare agreement with Finland’s Finnair, expanding travel options for passengers flying between Oman, Europe and Australia.

The deal represents the airline’s first partnership of this nature since it officially joined the Oneworld global airline alliance in June 2025.

Under the agreement, passengers will be able to reach Helsinki via London Heathrow Airport, where Oman Air operates 11 weekly flights from its main hub in Muscat.

The partnership will also cover Finnair-operated services connecting Helsinki with Paris, Amsterdam, Frankfurt, Munich, Zurich, Milan and Rome, providing passengers with additional options for travelling between major European cities and the Finnish capital.

The agreement extends beyond Europe to Australia, with connections to Melbourne available via Bangkok. Oman Air operates two daily flights to the Thai capital, creating further opportunities for passengers travelling between the Middle East and Australia.

Rohan Patel, Head of Partnerships and Alliances at Oman Air, described the agreement as a significant strategic move towards maximising the benefits of the airline’s Oneworld membership.

He said the partnership had helped Oman Air broaden its customers’ travel options, making it easier for them to reach Helsinki and connect with destinations across Finnair’s wider network.

Source: Oman News Agency

Jazeera Airways has taken delivery of its first Airbus A320neo in Kuwait, marking the start of a major fleet expansion programme as the airline celebrates 21 years of operations.

The aircraft is the first delivery under the carrier’s order for 26 Airbus aircraft. Chief Executive Officer Barathan Pasupathi accompanied the jet on its inaugural flight, J921, from Airbus headquarters in Toulouse, France, to Kuwait.

A welcoming ceremony in Kuwait was attended by Jazeera Airways Vice Chairman Mohammad Almousa, representatives of the Kuwait Civil Aviation Authority and Ministry of Interior, as well as the airline’s management and employees.

Almousa said the decision to accept the aircraft on schedule was deliberate, despite Kuwait’s airport having been closed for two months during the year. He noted that the aircraft is owned by Jazeera Airways, financed by Kuwaiti banks and expected to consume around 20% less fuel per seat than the previous generation.

He credited the airline’s employees with maintaining operations through what he described as its most difficult year since its first flight in 2005, adding that the delivery reflected confidence in Kuwait and the airline’s workforce.

Pasupathi described the arrival as a significant milestone, highlighting the company’s commitment to long-term growth, operational resilience and the development of Kuwait’s aviation market.

He said the aircraft acquisition represented more than an addition to the fleet, reflecting the airline’s ambition to strengthen its competitive position through modern aircraft, an improved passenger experience and an expanding route network.

New Aircraft Targets Efficiency and Passenger Comfort

The A320neo incorporates Airbus technology designed to improve fuel efficiency, reduce emissions and lower noise levels compared with previous-generation aircraft.

Passenger features include lightweight, ergonomically designed RECARO seats and larger overhead baggage compartments, providing additional cabin storage and making boarding more convenient.

Jazeera Airways expects the aircraft to support operational efficiency while improving the onboard experience for passengers.

Fleet and Network Expansion Plans

The airline aims to increase its fleet to 50 aircraft by 2030 and expand its network to 100 destinations. Its plans include strengthening existing routes, adding capacity and developing further connections across its markets.

The latest delivery follows a period of significant regional aviation disruption earlier in the year, during which the airline worked to maintain and restore operations.

Jazeera Airways said its broader development strategy focuses on fleet growth, network expansion, digital innovation and continued investment in its workforce and infrastructure.

Pasupathi said each new aircraft would create additional opportunities to connect people, communities and markets. He added that further deliveries would support product improvements and a wider network.

The airline currently operates across more than 50 destinations in the Middle East, Asia, Europe and Africa. It said the new aircraft reinforces its focus on a modern and efficient fleet, accessible air travel and sustainable growth, while contributing to the development of Kuwait’s aviation sector.

Source: TradeArabia

Qatar Airways has reduced its daily flight frequency to Jeddah, Saudi Arabia, as disruptions continue to affect its services to the Kingdom.

The airline said flights to and from Jeddah International Airport (JED) have been cut from seven daily services to four.

Meanwhile, flights connecting Doha with Riyadh (RUH) and Dammam (DMM) remain suspended through October 24, 2026, inclusive.

Qatar Airways has advised passengers to contact the airline within 48 hours of their scheduled departure to confirm the latest flight arrangements, warning that schedules remain subject to change.

Travellers can also visit the airline’s official website or use its mobile app to manage bookings and access updated flight information.

Source: The Peninsula