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Parts Shortages Lead Airlines and Traders to Scrap Young Jets Decades Early

A severe crunch in jet engines and spare parts is driving owners to dismantle modern passenger planes years ahead of schedule.

Parts Shortages Lead Airlines and Traders to Scrap Young Jets Decades Early
Image: CNBC Top News

At a glance

  • Airlines and traders are dismantling modern jets years early due to severe global shortages of engines and replacement components.
  • Data from IBA Group shows 21 new-generation jets averaging just 6.4 years old were scrapped between June 2025 and August.
  • Surging engine values and multi-year maintenance backlogs make parting out planes more profitable than keeping them in storage.

Commercial passenger airplanes built to operate for decades are being torn down and crushed just years after leaving factory lines, driven by a persistent shortage of aircraft engines and replacement parts. Outside Phoenix in Goodyear, Arizona, facilities are dismantling relatively new jets—including an Airbus A320neo built in 2022—to salvage high-demand components rather than wait years for maintenance.

According to aviation data and advisory firm IBA Group, 21 newest-generation aircraft were dismantled between June 2025 and this past August. The scrapped jets, consisting primarily of Airbus models alongside some Boeing aircraft, had an average age of just 6.4 years. Typically, narrow-body airliners operate for an average of 21.7 years before heading to the scrap yard.

Lucrative Aftermarket for Parts

For aircraft owners and asset traders, parting out young airframes has become more financially viable than keeping grounded planes in storage. Bill Thompson, vice president of aircraft and engine acquisition for the Americas at EirTrade Aviation, noted that his firm paid single-digit millions each for two sub-five-year-old A320neo jets. The company expects to generate a profit by selling over 1,000 components stripped from each plane before the fuselages were crushed by excavators.

The dismantling boom is fueled largely by severe bottlenecks in jet engine manufacturing and repair. Modern turbine engines burn hotter and achieve better fuel efficiency, but they also require maintenance much sooner than airlines anticipated. As repair centers operated by GE Aerospace, RTX division Pratt & Whitney, and third parties face deep backlogs, spare parts have skyrocketed in value. A single engine fan blade can cost up to $100,000, while internal turbine discs range between $1 million and $2 million.

Grounded Fleets and Soaring Costs

Supply strains intensified after Pratt & Whitney initiated a major 2023 recall involving contaminated powdered metal, which grounded hundreds of Airbus aircraft globally. IBA data indicates that those engines can fetch close to $17 million this year, a 60% jump compared to upper valuations in 2019. Monthly leasing rates for Pratt & Whitney and CFM International engines have climbed as high as $180,000.

The collapse of Spirit Airlines further increased the supply of idle, engine-starved jets stored in Arizona's dry desert. Rather than absorb ongoing storage fees during three- or four-year repair delays, some owners are opting to liquidate the aircraft for components, leaving empty aluminum shells to be compressed and sent to industrial smelters.

Source: CNBC.

Questions and answers

Why are nearly new airplanes being scrapped?
Severe shortages of engines and parts have created yearslong maintenance delays. Aircraft owners find it more profitable to strip and sell valuable components rather than pay storage fees waiting for repairs.
How young are the aircraft being dismantled?
Aviation advisory firm IBA Group recorded 21 newest-generation jets scrapped between June 2025 and August with an average age of 6.4 years, far below the normal narrow-body retirement average of 21.7 years.
What role did engine recalls play in these retirements?
A 2023 recall by Pratt & Whitney over powdered metal defects grounded hundreds of Airbus aircraft, driving up rental costs and making spare engines and individual parts exceptionally valuable.
Original reporting: CNBC Top News (cnbc.com)
aviationairbusspirit airlinespratt & whitneyaerospace

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