Engine shortages are sending almost-new Airbus jets to the scrapyard, as a global shortfall of next-generation powerplants disrupts airline operations and inverts the economics of the narrow-body market.
At Castellón airport in eastern Spain, a previously quiet facility has become a centre for dismantling aircraft. Technicians working for UK-based eCube are stripping parts from a six-year-old A321neo, reflecting a wider trend driven by the scarcity of Pratt & Whitney’s geared turbofan (GTF) engines.
Despite strong passenger demand and long order books, spare engines are in such short supply that, in some cases, they are valued more highly than the airframes they power. Industry sources say more than a dozen relatively young Airbus A320neo-family jets have already been parted out after only a few years in service, with further aircraft waiting at storage airports. Components from avionics to landing gear are harvested; engine nacelles sit empty while powerplants are removed, wrapped and sold into a buoyant spares market.
Prices have been pushed up by delays in GTF manufacturing and maintenance. The situation deteriorated in 2023 when Pratt & Whitney disclosed a rare powder-metal defect that could cause cracking, prompting additional inspections and shop visits. Airlines operating GTF-equipped A320neo-family jets have since faced prolonged groundings while awaiting repair capacity. According to Cirium, about one-third of the GTF-powered Airbus fleet—some 636 aircraft—are grounded or in storage, compared with roughly 4% for comparable aircraft fitted with rival CFM engines.
For asset owners and specialist lessors, parting out has become a rational response to these conditions. A single serviceable GTF spare can command up to $20 million, while monthly rentals for engines placed as standby units are reported at around $200,000 each—at least as much as leasing an entire aircraft with engines attached. When combined with proceeds from selling high-value components and the residual scrap value, dismantling can exceed the returns available from conventional leasing.
The trend has surprised industry veterans. “I can’t say I remember it happening on this scale before,” said eCube chief executive Lee McConnellogue, noting the popularity of the GTF on the A320neo family. He added that the company can release usable parts or recycle virtually the whole jet. The A321neo under disassembly in Castellón illustrates the point: aircraft designed for more than two decades of service are being broken for engines after only a handful of years.
Airlines and their trade bodies are uneasy about the long-term implications. Willie Walsh, director-general of the International Air Transport Association, said the situation showed “something seriously wrong”, citing the cost burden on carriers. IATA recently estimated industry-wide disruption costs this year at $11 billion, including $2.6 billion related to engines. With deliveries running late after years of supply-chain disruption, many operators are extending the lives of older aircraft to maintain capacity while maintenance backlogs are worked through.
Engine makers argue that the efficiency gains from new technology—often cited at around 15% lower fuel burn—accrue on every mile flown, and that current shop-visit delays will ease. RTX chief executive Chris Calio said in September that groundings had stabilised and should decline, though bottlenecks would take time to clear. Aviation economist Adam Pilarski contends that a push for higher efficiency, shaped by periods of very high oil prices, compromised durability and maintenance intervals on some models.
The market repercussions extend beyond engineering. The A320 family this month overtook Boeing’s 737 as the most-delivered jetliner, intensifying demand for compatible engines and parts. At the same time, private-equity funds have targeted aircraft and engine portfolios for teardown, encouraged by robust secondary values for serviceable material. Consultant Richard Brown describes the sector as an increasingly efficient marketplace in which capital is allocated to whichever option—leasing or part-out—offers the higher yield.
Attention is also turning to fleets in financial distress. Some Airbus jets formerly operated by Spirit Airlines, now in US bankruptcy proceedings, may be candidates for dismantling, according to eCube. Trading firms say outcomes will depend on court processes, individual maintenance status and the relative pricing of whole-aircraft leases versus parted-out engines and components. In a capacity-constrained environment, demand for serviceable spares remains strong.
