The global Aircraft Engine Leasing market size is predicted to grow from US$ 7179 million in 2025 to US$ 11891 million in 2032; it is expected to grow at a CAGR of 7.5% from 2026 to 2032.

Aircraft engine leasing refers to a practice in which airlines or other aircraft operators obtain the right to use aircraft engines through leasing rather than purchasing them outright, in order to meet operational needs such as regular operation, spare coverage, or support during maintenance. The engines are typically owned by specialized engine lessors or aviation asset management companies. Lease portfolios may include both brand-new engines and used engines that have been overhauled and refurbished.

From a business model perspective, aircraft engine leasing is generally divided into short-term leasing and long-term leasing. Short-term leasing is most commonly used for ?spare engines,? ensuring uninterrupted flight operations when an operator?s own engines are undergoing major maintenance (MRO) or suffer unexpected failures. Long-term leasing is closer to an asset-substitution solution: airlines can use leased engines over an extended period to reduce upfront capital expenditure. Lease agreements usually specify strict terms regarding operating hours, cycles, maintenance responsibilities, and the required return condition.

From a cost and financial management standpoint, engine leasing can significantly ease an airline?s funding burden. Aircraft engines are expensive, require substantial maintenance spending, and face rapid technological iteration. Leasing converts large capital expenditures into predictable operating expenses, improves asset turnover efficiency, and enhances budget stability. At the same time, leasing helps airlines respond flexibly to uncertainties arising from capacity changes, new aircraft introductions, or route-network adjustments.

From an industry chain perspective, aircraft engine leasing is a typical business that integrates aviation finance with aviation engineering, involving multiple stakeholders such as engine OEMs, maintenance organizations (MROs), insurers, and financial institutions. With the continued growth of global air transport and the expansion of aircraft fleets, engine leasing has become an important tool for airlines to safeguard operational reliability, improve operational flexibility, and optimize their financial structure.

Aircraft engine leasing is an aviation asset service model in which airlines or other aircraft operators obtain the right to use engines through leasing rather than purchasing them outright, primarily to support operational continuity, spare coverage, and maintenance replacement needs. Engines are typically owned by specialized engine leasing companies or aviation asset management firms. Lease portfolios may include both brand-new engines and used engines that have been overhauled and refurbished. Lease agreements are governed by constraints such as operating hours, cycles, maintenance responsibilities, airworthiness compliance, and return conditions, making the business fundamentally an asset-pricing and risk-management activity built on controllable engineering status.

From a product-structure perspective, aircraft engine leasing can be classified along five commonly used dimensions: by lease term (short-term vs. long-term); by purpose (spare-engine leasing, maintenance-replacement leasing, and capacity-support leasing); by aircraft platform (narrowbody vs. widebody engine leasing); by asset attribute (new-engine leasing vs. refurbished used-engine leasing); and by pricing mechanism (fixed rent, pay-by-the-hour (PBH), lease structures linked to maintenance reserves, short-term exchange packages, and bundled ?lease + MRO? solutions). In practice, these dimensions often overlap, and the industry typically defines product boundaries using a combination of ?use case + pricing mechanism? to better match an airline?s operating rhythm and cost objectives.

In terms of application structure, airlines are the primary demand drivers. Short-term leases are more oriented toward spare-engine pools and AOG coverage, providing rapid replacement when engines are queued for shop visits, when unexpected groundings occur, or during peak capacity periods. Long-term leasing is closer to an asset-substitution solution, helping airlines reduce upfront capital expenditures and improve cost predictability. Low-cost carriers and fast-growing airlines often place greater emphasis on the cash-flow flexibility enabled by leasing, while major network carriers focus more on operational reliability and fleet-planning assurance. Meanwhile, collaboration between MRO providers and lessors is strengthening through integrated ?shop visit + spare engine? offerings, which improve bay utilization and turnaround efficiency, reduce aircraft-on-ground losses, and enhance the controllability of maintenance planning.

From a cost-structure and profitability standpoint, value creation in engine leasing comes from a system-level optimization of ?cost of capital?utilization/turnover efficiency?maintenance strategy?residual value management.? Funding costs define the base pricing envelope; maintenance strategy and return conditions shape the engine?s rentable time and availability status; turnover efficiency determines revenue output per unit of asset base; and residual value management spans the full lifecycle and is closely linked to trading in used engines and used serviceable materials (USM). Profitability is materially influenced by engine generation, supply?demand tightness, shop-visit lead times and MRO capacity constraints, and contract design, with players that have stronger engineering management and global redeployment capabilities generally achieving higher-quality earnings for a given asset base.

Across the value chain, upstream participants include engine OEMs and critical component suppliers; midstream players include engine lessors, aviation asset managers, financial institutions, and insurers; and downstream participants include airlines and MRO providers. The competitive landscape is characterized by both concentration and specialization: integrated aviation leasing platforms leverage capital strength and customer reach to build large-scale engine pools; independent engine lessors differentiate through fast delivery, flexible contract products, and refined engine-platform management; and vertically integrated players with MRO capabilities or USM ecosystems enhance turnover and residual value control through ?leasing + maintenance + reuse? closed loops. Looking ahead, the industry is expected to continue evolving toward greater service orientation and refinement?PBH and bundled offerings will expand, digital health monitoring and life-remaining management will strengthen engineering-based pricing, more mature used-engine and USM markets will improve circular utilization, and fleet growth in emerging aviation markets will accelerate localized deployment of engine pools and maintenance resources.

LPI (LP Information) newest research report, the ?Aircraft Engine Leasing Industry Forecast? looks at past sales and reviews total world Aircraft Engine Leasing sales in 2025, providing a comprehensive analysis by region and market sector of projected Aircraft Engine Leasing sales for 2026 through 2032. With Aircraft Engine Leasing sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Aircraft Engine Leasing industry.

This Insight Report provides a comprehensive analysis of the global Aircraft Engine Leasing landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyses the strategies of leading global companies with a focus on Aircraft Engine Leasing portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms? unique position in an accelerating global Aircraft Engine Leasing market.

This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Aircraft Engine Leasing and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Aircraft Engine Leasing.

This report presents a comprehensive overview, market shares, and growth opportunities of Aircraft Engine Leasing market by product type, application, key players and key regions and countries.

Segmentation by Type:

    Turbofan
    Turboprop
    Turbojet
    Others
    Segmentation by Compatible Models:
    Narrow-Body
    Wide-Body
    Regional Jets
    Others
    Segmentation by Rental Model:
    Dry Lease
    Wet Lease

Segmentation by Application:

    Airlines
    Secondary Lessors
    MRO Providers
    Others

This report also splits the market by region:

    Americas
        United States
        Canada
        Mexico
        Brazil
    APAC
        China
        Japan
        Korea
        Southeast Asia
        India
        Australia
    Europe
        Germany
        France
        UK
        Italy
        Russia
    Middle East & Africa
        Egypt
        South Africa
        Israel
        Turkey
        GCC Countries

The below companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the companys coverage, product portfolio, its market penetration.

    AerCap
    Willis Lease Finance
    Engine Lease Finance
    FTAI Aviation
    SMBC Group
    GA Telesis
    AJW Group