Airline CEOs Blast New Engines as $100 Billion Fuel Bill Exposes Reliability Failures
Updated
Updated · CNBC · Jun 8
Airline CEOs Blast New Engines as $100 Billion Fuel Bill Exposes Reliability Failures
3 articles · Updated · CNBC · Jun 8
Summary
Airline chiefs at IATA's Rio assembly said newer fuel-efficient engines are forcing unscheduled shop visits far earlier than expected, grounding aircraft and eroding the savings they were sold to deliver.
About 15% promised fuel-burn gains are being offset by maintenance costs as hotter-running designs wear faster, while strong travel demand means every grounded jet leaves revenue on the table.
United CEO Scott Kirby said engine shortages will be the industry's biggest constraint for at least five years, citing persistent shortages of forgings and castings; Pratt customers also still face fallout from a manufacturing defect.
The strain is inflating the maintenance market beyond $58 billion and pushing engine values higher, with older CFM56 prices up 17% since 2019 and Pratt PW1127 values up more than 57%.
IATA's Willie Walsh accused manufacturers of "gouging" airlines even as supplier profits rise, while GE and Rolls-Royce said they are investing to improve durability and output.