Airlines Face High Cost, Delays in Getting New Engines
By Reuters | 22 Jan, 2026

Tariffs are among the reasons airlines are struggling with high costs and long delays in getting new engines installed on aging fleets as they await aircraft deliveries delayed by the pandemic.

GE Aerospace CEO Larry Culp on Thursday defended the jet-engine industry's pricing practices against airline industry complaints that soaring maintenance costs and engine shortages are straining their businesses.

Airlines say supply-chain snags, long waits for shop visits and limited spare engine availability have tilted pricing leverage toward manufacturers. 

That is an argument International Air Transport Association (IATA) Director General Willie Walsh has underscored as the industry grapples with grounded aircraft and repair backlogs.

Those complaints are flaring as the aerospace supply chain remains under heavy strain. Turnaround times at engine repair shops for newer-generation engines are about 150% higher than pre-pandemic benchmarks, according to Bain & Company, as airlines keep older aircraft flying longer while waiting for delayed new deliveries.

Culp, in an interview with Reuters, said the engine maker's pricing reflects the scale of investment required to develop and support complex propulsion systems, and the value that engine makers provide over decades-long service lives.

"We invest heavily in technology," Culp said, pointing to its roughly $3 billion in annual research and development spending. He said GE has tried to be clear with customers about "our place in the value chain: the investments we make, the risks we take on, and the value that we create."

LEAP DURABILITY FIXES

Culp said the company is trying to ease airline frustration by accelerating durability improvements to the LEAP engine family, built through CFM International, GE's joint venture with France's Safran and the sole engine supplier for Boeing's 737 MAX.

Regulators in the United States and Europe approved a durability kit for the LEAP‑1A engine, which powers Airbus A320neo‑family jets, in late 2024 to extend time on wing in hot and harsh operating environments. CFM has said similar durability improvements are being developed for the LEAP‑1B, which is used on Boeing's 737 MAX aircraft.

Culp said the LEAP durability upgrades are "all geared toward improving our product performance and lowering the airlines' cost of ownership".

AFTERMARKET MOMENTUM

GE Aerospace, which earns more than 70% of its commercial engine revenue from parts and services, has benefited from that dynamic. 

Culp said demand remains robust across both its aftermarket business and new-engine production, adding that he is not hearing customers talk about a slowdown.

On Thursday, the company forecast 2026 profit above analysts' estimates, citing strong demand for high-margin aftermarket work as airlines prioritize maintenance amid aircraft supply constraints. Its shares have gained about 70% in the past 12 months, far outpacing the S&P 500's gains. 

BALANCING FACTORY OUTPUT AND REPAIR PIPELINE

Another point of friction in the industry is whether engine makers must choose between supporting rising maintenance demand and meeting production targets for new aircraft — an issue sharpened by recent public sparring between Airbus and RTX's Pratt & Whitney over engine deliveries.

Culp rejected the idea that supporting airlines is a zero-sum choice between aftermarket work and new-build output, saying carriers are trying to keep existing fleets flying while modernizing at the same time.

"At the end of the day, the airlines are the ultimate customer," he said. "We're going to have to do more every year for the rest of this decade — serving airlines directly and working hand in hand with our airframe partners." 

PRICING AND INFLATION

Airline executives have argued that new U.S. trade tariffs and broader inflation are being used to justify price increases.

Culp said GE Aerospace is still managing cost pressures in some inputs and will conduct its regular summer review of aftermarket pricing, while relying on productivity gains, redesign and resourcing to limit pass-through.

He said the industry was still adjusting to shifting trade rules, but stressed that tariffs were only one element of a wider inflation backdrop.

"Everyone has been working through ... how to navigate the new trade environment," Culp told Reuters. "Tariffs and commodity inflation are just part of the equation with respect to thinking about price."

(Reporting by Rajesh Kumar Singh; Editing by Mark Potter, Jan Harvey and Nick Zieminski)