Despite the rebound in global air traffic and rising demand for engine services, GE Aerospace is facing continued supply chain disruptions. As a result, LEAP engine deliveries were down 29% in Q2 2024 compared to the same period last year. The company has also revised its full-year LEAP production estimate to 0–5% growth, significantly lower than the 10–15% forecast made in April (Reuters, July 2024).

The Industry is Facing a Stacked Deck

The latest cut in LEAP engine production adds to a growing list of challenges already straining the aviation industry. Persistent material shortages and tight labor markets continue to limit MRO capacity. In fact, cost/labor management as well as maintenance technician shortage has risen as top disruptors for MRO in a report by Oliver Wyman.

At the same time, shop visits and grounding are increasing, including for newer engines, in a June press release by IATA, more than 1,100 aircraft under 10 years old are currently in storage, making up 3.8% of the global fleet—up significantly from just 1.3% between 2015 and 2018. Nearly 70% of these grounded jets are powered by PW1000G engines. Aircraft production is also still struggling to regain momentum after the pandemic, although it is expected to rise slightly in 2025, though still below initial predictions and far from the 15.000+ backlogs that OEMs face now.

How Are Airlines Affected?

The knock-on effects for operators are becoming harder to manage:

• Slot constraints and longer queues at MRO facilities, albeit the rising number of MROs  could counteract this

• Increased reliance on older aircraft and engines in leasing markets, and an overall rise in prices overall

• Parts shortages, particularly for legacy fleets

• Delays caused by inspections leading to grounded aircraft

• Fleet availability issues that could impact route planning and network expansion

  
  

What Can Airlines Do?

While many of these issues are industry-wide, operators can take action to protect performance and avoid disruptions. Key areas of focus include:

• Maintenance Planning & Staggering: Advanced planning helps avoid clustered shop visits and maintains fleet availability. Staggering maintenance schedules also allows for better alignment with route and traffic demands.

• Workscope Optimization: Each shop visit should be scoped carefully to include essential tasks, avoiding rework or unplanned downtime. A clear workscope is especially valuable when turnaround times are tight and shop slots are limited.

• Material Planning & USM Strategy: With new parts becoming scarcer and lead times growing, early material planning is essential. Considering used serviceable material (USM) options can also help bridge gaps, especially for older aircraft.

  
  

Need Help Navigating the Challenges?

At TBM Aviation, we help operators adapt to rapidly changing supply chain and maintenance realities. Our customizable technical solutions are designed to support:

• Asset value preservation

• Regulatory compliance

• Operational and cost efficiency

Reach out to us at info@tbmaviation.com to schedule a consultation and explore how we can support your fleet through today’s constraints.