Jet fuel prices are more than double last year’s average, and IATA cut its 2026 passenger traffic growth forecast to 2.1% from 4.9%. Higher costs could pressure airlines’ maintenance spending and challenge engine specialists with elevated valuations.
Jet fuel prices are more than double last year’s average, and the International Air Transport Association cut its forecast for 2026 passenger traffic growth to 2.1% from 4.9%. Higher costs are putting pressure on airline profitability, which Citi analysts have described as a predictor of shareholder returns for aftermarket players.
Airlines helped boost maintenance and spare-parts demand by keeping older aircraft in service when Airbus and Boeing could not build new jets fast enough to meet demand. But Deutsche Lufthansa CEO Carsten Spohr said customers were delaying major refits, and Citi analysts cited a trend toward shorter-term, targeted maintenance instead of full overhauls.
Engine specialists have extensive work backlogs, and carriers may hesitate to lose maintenance slots or retire aircraft. Long-haul flying is benefiting from tight aircraft supply and airlines’ ability to pass on fare increases, while GE Aerospace, Rolls-Royce and Safran trade above valuation benchmarks cited in the article.
