A surprising and costly trend is emerging in the aviation industry: popular airplanes, some less than four years old, are being scrapped for parts years ahead of their expected lifespan. This unprecedented situation is primarily driven by severe shortages of critical components, especially advanced jet engines, which are experiencing extended maintenance delays and rising costs. The recent collapse of Spirit Airlines has further flooded the market with newer Airbus aircraft, leaving owners with the difficult choice between costly storage, resale, or the profitable, yet premature, dismantling of these valuable assets.
GOODYEAR, Ariz. — In a stark reversal of aviation norms, a state-of-the-art Airbus A320neo, a model designed for decades of service, met an early end this May. Less than four years after rolling off the Mobile, Alabama, assembly line in a vibrant yellow livery for Spirit Airlines, the aircraft was systematically stripped for its valuable parts, then crushed by an excavator on the outskirts of Phoenix. This incident highlights a disturbing new trend:
Industry leaders are witnessing an unprecedented number of aircraft being dismantled years, sometimes decades, before their anticipated retirement. This phenomenon stems from an acute global shortage of crucial components, with aircraft engines being the most prized and expensive. These shortages have plagued airlines for years, driving up operational costs significantly.
Even after the engines are removed, companies are actively seeking a myriad of other parts, from landing gear to antennae, for resale.
"It's the first time in my career that involved purchasing an aircraft that's less than five years since date of manufacture," remarked Bill Thompson, Vice President of aircraft and engine acquisition for the Americas at EirTrade Aviation. His firm acquired the less than 4-year-old Airbus A320neo and a similar counterpart earlier this year for "single-digit" millions each. Thompson anticipates substantial profits from selling the thousand-plus parts extracted before the planes were crushed. "I don't know if you're going to sell the coffee makers but you never know. Sometimes you do," he quipped.
'Don't fall in love with the metal'
According to aviation data firm IBA Group, 21 newest-generation aircraft were dismantled in a recent period ending this past August, averaging just 6.4 years old. This figure sharply contrasts with the typical narrow-body airplane retirement age of 21.7 years. While most were Airbus models, some Boeing planes were also affected.
"Anytime that you end up with any period of market softness in aircraft availability, engine availability, it's going to cause investors to look at other options," explained Simon Goodson, CEO of AerFin, a company specializing in aircraft and parts management. He advises his traders, "Please don't fall in love with the metal."
While hundreds of older aircraft are retired annually to make way for newer, more fuel-efficient models, the current trend involves much younger jets. Owners are increasingly unwilling to endure the lengthy waits for replacement parts or repairs, especially for relatively new aircraft.
"A year might not sound that long, but does three or four years?" questioned Dave Querio, CEO of Ascent Aviation Services, an aircraft repair, storage, and disassembly firm. "That's the issue for the aircraft that came in in '23, '24 and '25." In many instances, the value derived from selling individual parts surpasses that of selling the entire plane or incurring prolonged storage costs while awaiting service.
Querio notes a significant uptick, stating he hasn't seen "the volume of younger aircraft being torn down as I'm seeing today."
The Red-Hot Engine Market
A primary catalyst for these premature retirements is the soaring cost and extended lead times for jet engines. Modern, fuel-efficient engines, while technologically advanced, are unexpectedly requiring maintenance much earlier than anticipated. This has created a backlog at engine repair and overhaul facilities worldwide, encompassing giants like GE Aerospace and RTX's Pratt & Whitney, as well as smaller independent shops. Airlines and leasing companies are scrambling to source spare parts and engines wherever possible, often turning to facilities like those in Goodyear, Arizona.
This trend has further inflamed the already competitive secondhand parts market. A single engine fan blade can command prices from $50,000 to over $100,000 for larger jets, with some Airbus A320neo engines utilizing 20 such blades. An engine disc, a critical component, can fetch between $1 million and $2 million.
A significant factor exacerbating the problem is a 2023 recall by Pratt & Whitney due to a manufacturing defect involving contaminated powdered metal in certain engine parts. This recall led to grounded aircraft and repair shop delays globally, disproportionately affecting Spirit Airlines, even before its eventual collapse. These specific Pratt & Whitney engines, used in some Airbus A320neo aircraft, have seen their value surge by 60% since 2019, now reaching nearly $17 million at the higher end, according to IBA.
Airlines are resorting to a "Lego-like" strategy, cannibalizing engines from retired aircraft to keep operational planes flying while awaiting repairs or new engines. "So you're just playing Legos and moving engines on and off aircraft," stated Mike Stengel, a partner at AeroDynamic Advisory.
This demand-driven crunch has pushed engine purchase and rental costs to record highs. Leasing a popular engine can range from approximately $160,000 to $180,000 per month. A competing engine for the A320neo family from CFM International, a joint venture of GE Aerospace and France's Safran, commands similar rates, between $130,000 and $180,000 monthly.
Spirit Airlines' Ghost Planes
The issue of premature retirements predates Spirit's collapse. The 4-year-old Airbus torn down near Phoenix in May, for instance, was initially stored due to the engine recall. However, Spirit Airlines' eventual demise introduced a substantial portion of its Airbus fleet into the market, intensifying the dilemma for owners: wait indefinitely for parts, or liquidate the assets for immediate returns.
In late June, less than two months after Spirit's shutdown, CNBC visited AerSale's facility in Goodyear, Arizona, where dozens of the idle yellow planes were stored. The scene was poignant; a former Spirit captain, Glenn Zecchin, even visited, curious about his former airline's aircraft. Inside one jet, Spirit in-flight menus, safety cards, and pilot manuals remained untouched in the cockpit.
Not all these aircraft are destined for destruction. Some owners may opt for long-term storage in arid desert climates, which helps preserve the planes and prevent corrosion. Others might sell them to new carriers, who would then reconfigure the interiors, perhaps replacing Spirit's tight 28-inch seat pitch with more spacious arrangements.
However, continued storage incurs fees. If demand for parts remains high and the wait for returning a plane to service is too long, scrapping becomes the more viable option.
"After you get rid of all the valuable equipment and sell it back into the aftermarket, what's really left is just a metal carcass that you will literally take a crane and crush," explained AeroDynamic's Stengel. The remaining metal is then sold to recyclers, who might transform it into anything from beer cans to other non-aerospace products.
Ascent's Querio reflected on the process: "It's a little melancholy to watch it at times. But sometimes, it's kind of a thrill to ... see how fast an aircraft can be crunched up and sent off to the smelter."
— Leslie Josephs and Erin Black, CNBC.
