New generation narrowbody engine values surge beyond 2019 levels

Our intelligence reveals that new generation narrowbody engines remain highly liquid assets, and that base values have exceeded pre-pandemic values recorded in 2019. Essentially - a complete post-pandemic recovery. Meanwhile, base values of current generation engines are recovering at a slower rate, with a notable delta remaining between older engine variants.  

What's happened to narrowbody engine values? 

New generation engines - base values 

• CFM LEAP-1A26 - 27% increase in base value - US$9.36 million in 2019, increasing to US$11.9 million in 2023. 

• CFM LEAP-1B27/CB2/28’s - 24% increase in base value - US$10.53 million in 2019, increasing to US$13.098 million in 2023.  

• PW1127G - 22% increase in base value - US$ 9.22 million in 2019, increasing to $US11.27 million in 2023.  

Source: IBA Insight 

Current generation engines - market values 

• CFM56-5B4/3 PIP - 11% decrease in current market value - US$ million 7.16 in 2019, decreasing to US$ million 6.37 in 2023. 

• CFM56-5B4/3 - 16% decrease in current market value - US$ million 6.33 in 2019, decreasing to US$ million 5.31 in 2023. 

• V2527-A5 Select - 9% decrease in current market value - US$ million 6.09 in 2019, decreasing to US$ million 5.54 in 2023. 

• V2527-A5 - 21% decrease in current market value - US$ million 5.22 in 2019, decreasing to US$ million 4.13 in 2023. 

• CFM56-7B26/3 - 17% decrease in current market value - US$ million 6.63 in 2019, decreasing to US$ million 5.49 in 2023. 

• CFM56-7B26E - 8% decrease in current market value - US$ million 7.85 in 2019, decreasing to US$ million 7.23 in 2023. 

Source: IBA Insight 

Base values for current generation narrowbody engines are yet to recover to pre-pandemic levels. The gap between base and market value is increasing over time, indicating market volatility. In 2019, market value to base value was at 107% for the CFM56-7B26/3. This has decreased to 93% in 2023. 

IBA has one of the largest teams of certified senior appraisers in the industry who partner with aviation and financial sector clients globally to give independent advice on wide-ranging, complex asset valuation requirements. 

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