Engine leasing firms are bracing for a wave of opportunity and financial strain as the aviation industry enters a prolonged transition to new-generation aircraft engines, a shift that will stretch over the next two decades.
Speaking at Aviation Week’s Engine Leasing, Trading and Finance conference in London on June 4, Darren Wormald, Chief Operating Officer of Engine Lease Finance Corporation (ELFC), highlighted the scale of the coming fleet renewal. “We’re entering a gradual but significant transition phase,” he said, pointing to Boeing and Airbus forecasts projecting approximately 42,000 new aircraft deliveries worldwide through 2042.
“This is a major moment for the industry,” Wormald noted. “We’re shifting from post-production fleets to fleets built around advanced engine technology. It’s going to be a long, capital-intensive transition.”
According to ELFC estimates, approximately 1,900 new-technology spare engines were already in service at the close of 2024. By 2033, an additional 3,400 are expected to enter the global spare engine market—representing roughly $85 billion in equipment, or about $10 billion annually.
Of those, around 800 engines—worth an estimated $20 billion—are projected to enter the leased engine pool. Wormald emphasized the implications for capital flow. “Even with 800 engines, you’re talking about a very significant liquidity requirement,” he said. “And unlike aircraft leasing, the engine leasing space remains relatively concentrated, with few new players entering the market in recent years.”
This concentration means that a small group of firms will need to shoulder a substantial portion of the financial load. “Customers will increasingly rely on lessors for liquidity, but right now, there are only a limited number of players with the capacity to deliver that,” Wormald added.
ELFC, based in Shannon, Ireland, specializes in medium- to long-term leasing agreements and serves a global client base including airlines, maintenance providers (MROs), OEMs, and aircraft lessors. Its portfolio includes both current and next-generation engines powering narrowbody and widebody aircraft.
As the aviation industry modernizes, engine lessors like ELFC will play a pivotal role in bridging the financial and operational demands of an evolving global fleet.