In the News
Midlife Aircraft, Engines Still Hot. But For How Long?
Fri, August 09 2019
Will the demand for mid-life aircraft and engines temper as fuel prices rise?
Printed headline: Aviation’s Middle Age
Jet fuel prices have trended upward since early 2016, although they are still about 40% lower than during the early part of this decade. However, few within the industry would be surprised by further increases, which raises questions about whether growth in the midlife aircraft and engine market can be sustained.
Despite the introduction of new-technology widebodies and narrowbodies, midlife aircraft have seen a surge in demand in recent years due to relatively low fuel prices, teething problems with new equipment and the much better reliability associated with several mature platforms. The grounding of the Boeing 737 MAX in early 2019 provided another boost as airlines sought replacement capacity, although the premium several operators are paying in rent to cover the shortfall is likely to be short-lived.
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