Full-Life CFM56 Engine Prices Double to $13 Million as Supply Bottlenecks Keep Older Freighters Flying
Why It MattersScarce engines, parts and conversion airframes are lengthening the working life of older freighters and lifting lease and purchase values across the cargo-aircraft market.
Air cargo demand has risen since the e-commerce boom and pandemic-era traffic, but supply bottlenecks in new widebody freighters and engines are constraining capacity. Pratt & Whitney, General Electric, Rolls-Royce and CFM International are struggling with output, and prices of passenger-to-freighter conversions and rebuilt turbofans have risen. A full-life CFM56 engine, common on Boeing 737 Next Generation jets, that once cost about $6 million now commands an average of $13 million, and even unserviceable units can fetch several million for parts.
Cargo Facts Consulting counted only 52 freighters entering service in the first eight months of 2026. A parts dispute over trailing-edge rib kits forced Boeing to halt production of its 777F and 767F, stopping deliveries to carriers such as FedEx and UPS. Delays to the Airbus A350F and Boeing 777-8F have added to the squeeze: the A350F program has slipped to late 2027 and the 777-8F to 2028 or 2029. Airbus holds over 100 firm A350F orders, including Singapore Airlines, Cathay Cargo, Etihad Airways and Atlas Air, while Boeing has over 80 for the 777-8F, led by launch customer Qatar Airways Cargo, with Cargolux, MSC Air Cargo and China Airlines. FedEx is bringing MD-11 trijets back from a grounding following last year's fatal UPS crash, and lessors are racing to convert retired passenger 777-300ERs to freighters.
Because new passenger jets are delayed, airlines are extending leases on midlife narrowbodies such as the 737NG instead of sending them for conversion, shrinking the pool of conversion airframes and absorbing engine maintenance capacity and spare parts. Shortages of life-limited parts have pushed overhaul shops into competition, with companies buying intact older engines solely to dismantle them. Overhaul times have lengthened, driving demand for lease engines and pushing up lease rates and purchase prices.
IBA base values rose by an average of 114% for factory-built and converted 747-400Fs, with the 777-200LR conversion up 17% and the 777-300ERSF up 19% on average. Converted 737-800 and A321-200 freighters gained about 17%.
