Why Engine Lease Rates Are Still Climbing as Values Level Off

When Spirit Airlines wound down on May 2, it left 114 A320-family aircraft and 18 spare engines in play. Some in the industry hoped that would ease the shortage of serviceable narrowbody engines. Five months on, lease rates remain high, even though IBA says engine values have stabilised. The gap between those two measures is the story.

Spirit's Engines Moved Faster Than Its Aircraft

Spirit's fleet was 66 leased aircraft and 48 owned ones. By early August, 84 former Spirit aircraft sat in storage at AerSale's Goodyear facility, and almost all the A320neos among them had already had their engines removed. AerSale expects most to fly again within a year, though timing depends on sourcing replacement engines.

The engines didn't wait. Willis Lease Finance's CEO said GTF engines pulled from former Spirit aircraft went directly into lease pools to support other operators, including aircraft on the ground. Lessor Aircastle recovered four A320neos, and by July some of their engines were already on green-time leases while the airframes aren't expected back in service until around mid-2027. Some young A320neos are going to teardown instead.

Extra Supply Didn't Soften Pricing

According to the same report, the added supply did not soften lease pricing. Cirium data cited in industry reporting puts the combined rent for a pair of serviceable GTF engines at around $400,000 a month, in some cases close to the lease economics of a complete aircraft.

EngineStands.com, which leases engine stands, offers a view from its own portfolio. It reports 95% utilization on its PW1100G stands, and says first-half leasing volume for them already exceeded all of 2025. Average project duration on those leases fell from 245 days in 2024 to 123 days in the first half of 2026. That is one vendor's data, not a market-wide measure.

Values Plateau While Lease Rates Hold

IBA's picture lines up with that. In its March update, IBA said there were signs the market was past the peak of the previous 18 months and made no changes to CFM56-5B and CFM56-7B values. 

Its October update goes further. Values for current-generation engines have broadly stabilised, but limited spare availability and continued MRO pressure are keeping lease rates elevated. Average lease rates for the CFM56-5B/3 PIP rose 11%, with some up 29%. The V2500-A5 moved the other way, with values down 7% and lease rates down 6% as more feedstock becomes available.

Why Values and Rents Can Diverge

A value is a view of what an engine is worth over its life, while a lease rate is what an operator pays to have one now. My read is that the market doesn't expect today's shortage to last, which would explain steadier values, but operators with aircraft waiting still pay up. IBA's Jamie Davey said he expects any easing to be uneven, depending on engine durability, MRO capacity, spare availability and the pace of new aircraft deliveries.

What Could Change the Picture

The next test is Spirit's remaining aircraft. A $630 million stalking-horse proposal covers 27 of its owned A320-family aircraft and was open to competing bids. If more of the fleet returns to service, demand for replacement engines rises. If more is torn down, engines keep getting leased separately. Either outcome keeps the engine at the center of the deal.

Why It Matters

Even the collapse of a 114-aircraft operator hasn't loosened the market for serviceable engines. For lessors, rents are holding up. For airlines, keeping an older fleet flying remains expensive, and IBA's own outlook points to a slow, uneven easing, not a sudden drop.