Airlines desperate for planes are paying up for older models

Boeing’s latest 737 Max crisis has worsened an airline shortage of popular narrowbody aircraft, sending the cost of used-jet rentals to the highest level in years. The US planemaker has slowed production of its bestselling model to address quality lapses tied to a near-disaster on a 737 Max 9 in January. With Airbus SE also struggling to lift output, available planes remain scarce. As a result, airlines are searching out leased ones — especially the largest single-aisle jets that carry more passengers. A 3-year-old 737 Max 9, the largest narrowbody in production at Boeing, now commands a higher monthly rent than before the pandemic, according to data from Ishka Global, which tracks aircraft prices. The price of an earlier 737-900ER is approaching January 2020 levels. A similar trend has boosted fees for the Airbus A321neo and the prior A321-200 variant. According to the Ishka figures, the monthly rate for the Max 9 model stood at $315,000 in March, compared with $305,000 at the start of 2020. The Airbus A321-200 costs $335,000 to lease per month, bringing it back to the level of January 2020. Lessors have gained leverage and are now more likely to shift planes from struggling airlines to ones that are willing to pay a premium, said Eddy Pieniazek, head of advisory at Ishka Global. Carriers “are competing with a decreasing pool of available assets,” he said. Rental prices for used aircraft had already surged in 2023, following a shortage that developed when air travel quickly rebounded from the pandemic. While airlines ordered jets in record numbers, Airbus and Boeing have taken longer to rebuild output. While Airbus deliveries are increasing, supplier constraints have slowed its progress toward surpassing pre-Covid production. Airlines are also grappling with engine issues that have grounded hundreds of A320-series planes — further squeezing availability.<br/>