The shutdown of budget airline Spirit Airlines last week may offer unexpected relief for a critical aircraft engine shortage that has plagued the aviation industry, according to industry professionals and market analysts.
Spirit Airlines stopped all operations on May 1 after struggling with elevated fuel costs. The carrier’s bankruptcy has resulted in nearly-new Airbus A320neo aircraft being taken apart for components — continuing an industry pattern driven by a serious lack of available RTX Pratt & Whitney Geared Turbofan engines.
Following Spirit’s collapse, more A320neo aircraft have become accessible in the U.S. market, with their fuel-efficient GTF engines often proving more valuable than the planes themselves.
“We are seeing some of the GTF engines from the Spirit A320s being removed from the airframes and leased out to customers to support (aircraft on the ground),” explained Austin Willis, CEO of Willis Lease Finance Corp. He noted that rental costs for GTF engines remain unchanged.
“This is providing some limited temporary relief from the supply/demand imbalance,” Willis added.
The engine shortage has forced hundreds of A320neo aircraft to remain on the ground, partly because of extended wait periods for engine maintenance and repairs, combined with production issues at Pratt & Whitney that have limited GTF engine availability.
GTF engines are installed in no less than 40% of operating A320neos and face competition from CFM International’s LEAP engine for airline contracts.
Airbus has expressed frustration about GTF shortages affecting new aircraft production amid ongoing disputes over engine allocation priorities between new plane assembly lines and airlines awaiting repairs.
Lars Wagner, who leads Airbus’ Commercial Aircraft division, chose not to discuss the GTF situation during a Wednesday interview.
Dick Allewelt, who founded and operates Allewelt Aviation Consulting GmbH in Germany, stated that dismantling some Spirit aircraft “could have an easing effect on the spare engine market going forward.”
Sumisho Air Lease, which provided recent aircraft to Spirit, refused to provide comments. Aircraft lessor AerCap could not be reached for statement.
RTX, which also declined commentary, announced in April that fewer A320neo aircraft are remaining grounded thanks to expanded repair facility capabilities.
Arizona-based parts supplier KP Aviation reports that multiple former Spirit Airlines aircraft are currently being offered for dismantling and breakdown.
“There’s a lot of money in the engines,” stated KP Aviation Chief Commercial Officer Scott Butler. “The airframes, there may not be as much appetite” as additional Spirit aircraft enter the market, he explained.
In February, Dublin-based aviation asset manager EirTrade Aviation and Chicago-based aviation and rail lessor RESIDCO announced plans to break down two nearly-new Spirit A320neos for components.
KP Aviation intends to disassemble five-to-six-year-old aircraft from an earlier group of distinctive yellow Spirit planes that returned to the marketplace in late 2025.
Beyond engines, Butler mentioned strong demand exists for auxiliary power units, landing gear systems and flight control equipment.
Earlier this week, Spirit Airlines obtained approval from a U.S. bankruptcy court to speed up its liquidation process, including faster aircraft sales.
Spirit’s May fleet consisted of 114 Airbus A320-family aircraft, with 66 under lease agreements.
Court documents show the airline possesses 17 GTF engines owned by leasing companies. Lessors also control approximately 30 aircraft equipped with GTF engines, according to bankruptcy filings.
These aircraft won’t reach the market for several months, Butler indicated, as leasing companies gather technical documentation about the assets.
