ENGINE SHORTAGES AND MRO BACKLOG KEEP VALUES AND LEASE RATES ELEVATED, SAYS IBA
Narrowbody Engine Values
IBA’s latest Engine Value and Lease Rate Update for H1 2026 shows that, while demand across the engine market remains strong, there are early signs of stabilisation in parts of the narrowbody segment following a prolonged period of growth.
Values for widely used narrowbody engines, including the CFM56-5B and CFM56-7B, have levelled off after approximately 18 months of increases, indicating the market may be reaching a plateau. However, demand for serviceable engines remains high, particularly where operators are seeking to avoid costly and time-intensive maintenance events.
IBA’s latest update shows percentage changes in engine market values and lease rates in H1 compared to the previous reporting period (Table One).
(Table One) Source: IBA Intelligence
This is reflected in continued strong demand for the V2500-A5, trading between $11 million and $13 million. At the same time, new-generation engines such as the LEAP and PW1100G families continue to face time-on-wing challenges, contributing to elevated aircraft-on-ground (AOG) levels and sustained demand for spare engines. IBA has also modelled a value profile for the upcoming Advantage and Hot Section Plus (HS+) upgrade, indicating future value upside linked to upgrade programmes.
(Table Two) Source: IBA Insight
Widebody Engine Values
Constrained aircraft production and ongoing programme delays are continuing to underpin engine values for widebody aircraft. Full-life values for engines powering the Boeing 777-300ER have risen significantly since 2023, with Full-Life values now exceeding $32 million. Spot Lease rates have also strengthened to between $170,000 and $185,000 per month.
(Table Three) Source: IBA Insight
The Airbus A330ceo market is also performing strongly, particularly for the Trent 700, where overhauled engines are achieving significantly higher values, while half-life values have also increased in line with broader market trends (Table 3).
Regional and Turboprop Values
Supply chain pressures are also being felt in the regional and turboprop markets, where component shortages and extended maintenance turnaround times are impacting engine availability and maintenance-adjusted values.
(Table Four) Source: IBA Intelligence
Engines such as the CF34-8E are supported by scope clauses in North America that limit production of newer Embraer E175-E2 aircraft and underpin the long-term relevance of existing platforms. While the latest data shows a slight decline in half-life values, this is primarily driven by maintenance-related adjustments rather than a weakening in underlying market demand (Table 4).
In contrast, Pratt & Whitney Canada’s PW127M is experiencing upward pressure on values and lease rates due to supply chain constraints, including shortages of key components, which are extending MRO turnaround times and tightening spare engine availability. IBA has received indications that output could increase as these supply chain pressures ease.
Overall, IBA expects MRO demand, supply chain constraints and delayed aircraft production to remain key drivers of engine values in the near term. While some segments are showing signs of stabilisation, demand for serviceable engines continues to outpace supply.
