Aircraft Engine Leasing Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Aircraft Engine Leasing Market is projected to expand from USD 11.17 Billion in 2025 to USD 15.56 Billion by 2031, registering a Compound Annual Growth Rate (CAGR) of 5.68%. This market involves the strategic rental of aircraft propulsion systems to operators, providing financial agility and operational continuity without the heavy capital investment needed for direct purchases. Key drivers fueling this growth include the rising need for spare engines to manage extended maintenance periods and a financial preference among airlines to limit balance sheet liabilities through operating leases. Additionally, ongoing delays in new aircraft deliveries have forced carriers to prolong the service life of aging fleets, thereby increasing the demand for leased engines to sustain flight schedules during rigorous overhaul cycles.

However, market expansion faces a substantial hurdle due to severe supply chain disruptions within the Maintenance, Repair, and Overhaul (MRO) sector, which have significantly extended engine turnaround times. This bottleneck limits the pool of available serviceable assets, creating a distinct imbalance between supply and demand. According to the International Air Transport Association (IATA), supply chain constraints are expected to cost the airline industry approximately $2.6 billion in 2025 specifically due to increased engine leasing costs resulting from operational interruptions. These critical inventory shortages ultimately restrict the market's capacity to fully leverage the prevailing high demand.

Market Drivers

Supply chain limitations leading to the extension of existing lease agreements act as a dominant force shaping the Global Aircraft Engine Leasing Market. Persistent delays in new aircraft deliveries combined with prolonged maintenance turnaround times have established a structural supply deficit, compelling operators to keep older assets well beyond their original lease terms.

This shortage has shifted leverage in favor of lessors, resulting in greater pricing power for available inventory as airlines compete for lift capacity; indeed, Avolon's '2025 Outlook: Fast Forward' report from January 2025 indicates that market lease rates for current-technology assets have risen nearly 50% over the last two years due to this acute scarcity. Consequently, airlines must prioritize lease extensions to guarantee fleet continuity, effectively driving revenue growth for lessors through extended rental periods and higher asset utilization.

Simultaneously, market activity is being intensified by a surging demand for spare engines to support MRO shop visits. Durability issues associated with next-generation propulsion systems have necessitated removals earlier than scheduled, creating an urgent need for spare units to keep aircraft operational during extended maintenance stops. This trend has directly bolstered the financial performance of major aftermarket players. For instance, Safran reported in its 'Full-year 2024 results' press release in February 2025 that civil aftermarket revenue grew by 24.9% in 2024, largely driven by this elevated demand for spares and support. To capitalize on these dynamics, lessors have aggressively increased transaction volumes; according to AerCap in January 2025, the company signed 496 lease agreements during the full year 2024, highlighting the robust liquidity and high turnover characterizing the current market.

Market Challenges

Severe supply chain disruptions impacting the Maintenance, Repair, and Overhaul (MRO) sector represent a formidable barrier to the growth of the Global Aircraft Engine Leasing Market. This operational bottleneck has drastically extended engine turnaround times, resulting in power plants remaining in repair facilities for significantly longer periods rather than generating revenue on the wing. As a result, the pool of serviceable spare engines has contracted sharply, causing a scarcity of available assets. This physical shortage prevents lessors from fulfilling the surging requests from airlines, effectively placing a ceiling on transaction volumes and market expansion despite the robust appetite for leased capacity.

The gravity of this inventory constraint is illustrated by recent industry data regarding assets grounded by technical delays. According to the International Air Transport Association (IATA), in late 2024, approximately 700 aircraft - representing roughly 2% of the global commercial fleet - remained parked specifically due to engine inspections and maintenance backlogs. This unavailability of essential propulsion units directly hampers the leasing market's ability to capitalize on current opportunities, as the lack of tradable inventory limits the number of new lease agreements that can be executed.

Market Trends

The strategic monetization of green-time engines has emerged as a vital asset management strategy, allowing lessors to generate premium value from mature portfolios while bypassing MRO bottlenecks. Instead of waiting for full performance restoration, lessors are increasingly dismantling older propulsion units to recover serviceable modules, offering operators immediate, lower-cost solutions to maintain fleet serviceability. This approach has proven highly lucrative; according to FTAI Aviation's 'Fourth Quarter and Full Year 2024 Results' press release in February 2025, the company’s Aerospace Products segment achieved a net income of $346 million in 2024, marking a 92% year-over-year increase largely due to the success of its module factory model.

Concurrently, the expansion of leasing activity in emerging Asian markets is reshaping the global distribution of spare engine inventories. High-growth carriers in regions like India and Southeast Asia are aggressively securing leased spare capacity to support rapid fleet augmentation and mitigate technical grounding risks. This geographical pivot is evidenced by established lessors deepening their exposure to Indian operators. According to an April 2024 press release from SMBC Aero Engine Lease, the firm commenced dry operating leases of three LEAP-1A engines to IndiGo, establishing its first direct transaction with the airline to support its expanding operations.

Key Players Profiled in the Aircraft Engine Leasing Market

• RTX Corporation
• Rolls-Royce & Partners Finance Limited
• AerCap Holdings N.V.
• MTU Aero Engines AG
• SMBC Aero Engine Lease B.V.
• Willis Lease Finance Corporation
• FTAI Aviation Ltd.
• Engine Lease Finance Corporation
• Shannon Engine Support Ltd.
• Falko Regional Aircraft Limited

Report Scope

In this report, the Global Aircraft Engine Leasing Market has been segmented into the following categories:

Aircraft Engine Leasing Market, by Engine Type:

• Turbofan
• Turboprop
• Piston
• Turboshaft

Aircraft Engine Leasing Market, by Leasing Period:

• 5 Years to 10 Years
• Less than 5 Years
• Above 10 Years

Aircraft Engine Leasing Market, by Aircraft Type:

• Narrow-Body Aircraft
• Wide-Body Aircraft
• Regional Aircraft
• Others

Aircraft Engine Leasing Market, by Application:

• Commercial
• Military

Aircraft Engine Leasing Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Aircraft Engine Leasing Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.