04 Nov 2025
The Secondary Market Surge – Why Mid-Life Aircraft Are Back in Demand
For years, mid-life aircraft sat in an awkward spot too old to be the first choice, too young to retire. They filled gaps, supported seasonal routes, and offered airlines flexibility, but they were rarely the stars of the show. That has now changed.
Today, mid-life jets are some of the most in-demand assets in global aviation. Not because they suddenly became more efficient or cheaper to run, but because the industry around them has shifted in ways no one expected. With OEM delivery delays stretching into the 2030s, engine issues grounding newer fleets, and post-pandemic demand surging faster than supply, airlines are turning to the one resource that can fill capacity right now mid-life aircraft.
These jets, typically 10–15 years old, are proving they have more than just “remaining useful life.” They have market power. Lease rates are climbing, redeliveries are being postponed, and retirements are being pushed years down the road. Lessors who once considered these assets transitional are now seeing them generate stronger cash flow, higher renewal demand, and renewed interest from investors.
What began as a temporary fix has become a structural shift in the secondary market and it’s redefining how lessors think about value, timing, and long-term portfolio strategy.
Why Are OEM Delivery Delays Fueling a Secondary Market Boom?
OEM delays aren’t a small inconvenience anymore; they're the single biggest force reshaping aircraft demand today. Airbus and Boeing are facing a mix of supply chain shortages, labour gaps, and quality-control setbacks that have pushed delivery timelines far beyond what airlines planned for.
The backlog tells the full story. With more than 17,000 aircraft on order globally, many airlines are now waiting up to 10–14 years for new jets. That’s longer than a full lease term. Even airlines with priority slots are receiving fewer aircraft than promised, forcing them to re-evaluate fleet plans year after year.
Because of these delays, airlines can’t rely on new deliveries to meet growing passenger demand. They need lift immediately, and the only place to find it is the secondary market. This is why mid-life aircraft once seen as a stopgap have become highly valuable assets. They’re available, proven, and capable of flying revenue-generating routes today.
Compounding the problem is that both Airbus and Boeing are projected to fall short of their production targets again. With supply chain issues continuing into 2025 and beyond, the shortage of new aircraft isn’t going away soon.
For lessors, this has transformed the landscape. Instead of planning for slow depreciation on mid-life jets, they’re now navigating a market where older aircraft are appreciating a scenario that flips traditional portfolio assumptions upside down.
How Have Engine Reliability Problems Boosted Demand for Mid-Life Fleets?
Engine issues have become one of the most unexpected drivers behind the surge in mid-life aircraft demand. New-generation engines were designed to be more efficient, quieter, and greener — but several models have struggled with durability and reliability in real-world operations.
The most visible example is the Pratt & Whitney Geared Turbofan (GTF). Thousands of engines require premature inspections or replacement of critical components. Many airlines operating A320neo-family aircraft have been forced to ground part of their fleets for months, creating sudden and severe capacity gaps.
When your newest aircraft can’t fly, you look for airplanes that can. And that’s where mid-life jets step in.
Unlike newer platforms, mid-life aircraft especially the A320ceo and 737NG families run on engine types with long operational histories. Their performance is predictable, shop visit costs are well understood, and global MRO networks are built around them. That makes them operationally safer bets for airlines that need reliable, immediate capacity.
These engine challenges have also slowed down deliveries of new aircraft. OEMs can’t hand over airplanes without engines, and engine manufacturers can’t overhaul units fast enough to meet demand. It’s a bottleneck with no quick fix.
The result?
• Airlines are extending leases on their mid-life fleets.
• Lessors are achieving higher utilisation and longer revenue cycles.
• Investors are favouring mid-life engines with strong maintenance status.
In a market where grounded new aircraft earn nothing, mid-life aircraft are proving to be the most dependable assets in the sky.
Why Are Lease Rates Climbing for Older Aircraft?
Lease rates for older jets are rising for one simple reason: there aren’t enough aircraft to go around. When airlines can’t secure new deliveries and part of the next-generation fleet is grounded due to engine issues, every available mid-life aircraft becomes valuable.
This supply–demand imbalance has pushed lease rates higher across the board. Even models that were once considered mature or nearing the end of their prime like the A320ceo family are seeing annual lease rate growth of 20% or more. Lessors who expected these aircraft to plateau in value are instead experiencing a profitable curve reversal.
Airlines aren’t just paying higher rates for new leases; they’re also extending existing ones. Instead of returning mid-life jets as originally planned, many operators are renegotiating to keep them flying longer. Renewal rates are up, and early redeliveries are down, trapping even more demand in a tight market.
Another factor is competition for immediate lift. Low-cost carriers, leisure-heavy operators, and fast-growing Asia-Pacific airlines are aggressively bidding for any available aircraft. They need capacity now, not years later, and they’re willing to pay a premium to secure it.
Lessors also face higher financing and maintenance costs, and rising lease rates help balance those pressures. But make no mistake the real driver is scarcity. When an industry built on precision planning hits a supply crunch, anything flyable becomes valuable, and mid-life jets are benefiting the most.
How Are Delayed Retirements Changing Global Fleet Age and Utilisation?
Delayed retirements have quietly reshaped the world’s fleet in just a few years. Before the pandemic, airlines were steadily phasing out older jets to make room for newer, fuel-efficient models. But with delivery delays, engine problems, and soaring demand, retirement timelines have been pushed far into the future.
The numbers tell the story:
• The average global fleet age has risen by over a year since 2019.
• The retirement rate has dropped by nearly 50%.
• Many aircraft scheduled to exit service in 2021–2024 are still flying, with new retirement plans delayed into the late 2020s.
Why? Because airlines simply cannot afford to lose capacity. Every aircraft counts.
Instead of returning mid-life jets at the end of lease terms, operators are extending them sometimes multiple times. Jets once considered close to sunset are now flying some of their most profitable years, thanks to record passenger demand and limited alternatives.
This shift is also increasing utilisation. Airlines are running older jets harder and longer, using them for routes that previously would have gone to new-generation aircraft. Mid-life narrow-bodies, in particular, are logging strong flying hours because they offer dependable performance without relying on constrained engine platforms.
For lessors, this is a double advantage:
• More utilisation means more revenue.
• Fewer retirements mean stronger residuals and higher asset value retention.
But it also comes with risks especially rising maintenance costs and shop visit unpredictability. Still, in today’s environment, keeping mid-life aircraft flying makes more sense than parking them.
Why Are Mid-Life Aircraft Ideal for Freighter Conversions?
Mid-life aircraft are hitting a sweet spot in the cargo market, and the timing couldn’t be better. With global e-commerce booming and delivery expectations getting faster every year, airlines and logistics players need reliable freighters that don’t cost the same as brand-new jets. That’s where mid-life aircraft step in.
These aircraft, usually between 10 and 15 years old, have already completed their most profitable passenger years. Their market value is lower than newer jets, but their structures are still strong enough to operate for another decade or more. This balance, lower capital cost, high remaining utility makes them perfect candidates for conversion.
The most in-demand models right now include the Boeing 737-800, Airbus A321, and Boeing 767, all of which offer excellent payload, range, and efficiency for cargo operators. With OEM delays affecting passenger fleets, freighter demand has shifted even more toward conversions as airlines wait for factory-built freighters that may not arrive until the 2030s.
For lessors, P2F conversions offer two major benefits:
- A second life for aging assets
Instead of selling a mid-life aircraft at a discount, converting it into a freighter gives the lessor an entirely new revenue stream. Cargo operators often sign longer leases, providing very steady cash flows.
- A hedge against market cycles
When passenger demand softens, cargo demand often remains strong. A freighter in the portfolio adds stability and diversification, helping lessors weather downturns.
Cargo demand is also being boosted by the growth of express shipping, cross-border online shopping, and rapid delivery expectations. This ensures a long, predictable runway for converted freighters.
In short, mid-life jets fit the perfect economic and operational profile for conversion: affordable to acquire, long enough life left to justify the upgrade, and capable of meeting the explosive global need for air cargo capacity.
How Should Lessors Adapt Their Portfolio Strategy to Today’s Secondary Market Surge?
Here’s the thing: the secondary market boom isn’t just a temporary blip. It’s reshaping how lessors think about asset allocation, risk, and long-term returns. Mid-life aircraft are no longer the “hold and dispose” assets they used to be. They’re turning into strategic tools, and lessors who adapt quickly will capture the upside.
The first shift is portfolio balance. Lessors can’t rely on a heavy pipeline of new-generation aircraft alone, especially with OEM delivery delays stretching well into the next decade. This means reassessing the mix and giving more room to mid-life assets that are currently outperforming their traditional depreciation curve. In many portfolios, a mid-life narrow-body generating strong cash flow today can be just as valuable as a new aircraft with a long wait time.
Another key change is timing. With lease extensions becoming the norm, lessors need tighter visibility into when each aircraft may actually return because those returns are now less predictable. Strong forecasting models and data-driven insights help lessors identify the right moment to re-market an asset, negotiate extensions, or plan maintenance reserves more accurately.
Risk management and maintenance strategy also evolve in this environment. Mid-life aircraft require more MRO attention, and with engine shortages in full swing, lessors need smarter processes for managing shop visits, engine swaps, and redelivery conditions. Those who can streamline technical oversight will protect asset value and minimize unexpected downtime.
Finally, lessors should treat the current surge as an opportunity to strengthen long-term optionality. A mid-life asset today might become a passenger workhorse for an extra five years, a solid candidate for a P2F conversion tomorrow, or a stable sale opportunity for investors hunting for yield. Thinking in terms of multiple exit paths not just a single lease cycle builds resilience into the portfolio.
This surge in the secondary market is telling lessors one thing: agility matters more than ever. Those who diversify intelligently, plan ahead, and leverage data to guide decisions will stay ahead of the curve as mid-life aircraft continue to shape the next era of fleet strategy.
What Does This Secondary Market Shift Mean for the Future of Aircraft Leasing?
It signals a clear reset. The old playbook where newer automatically meant better and mid-life jets followed a predictable decline doesn’t hold anymore. With supply tight, demand strong, and retirements delayed, the industry is learning that value can come from different parts of the lifecycle, not just the shiny end.
For lessors, it means leaning into flexibility. The portfolios that perform best over the next decade will be the ones built on smart timing, diversified age profiles, and aircraft that can move between passenger service, extended leases, and freighter conversions without losing economic momentum.
For airlines, it means more options but also more competition. Whoever secures capacity first even if it’s mid-life metal has the advantage in a market where demand regularly outpaces supply.
And on a broader level, it shows how fast aviation can shift. A few years ago, many of these same aircraft were considered end-of-life. Today, they’re powering global networks and driving a new kind of portfolio strategy.
The secondary market surge isn’t just a response to today’s shortages, it's a signal of how adaptive and dynamic the industry can be when the pressure is on.
FAQs
1. Why are mid-life aircraft suddenly seeing a surge in demand?
Airlines can’t get new jets quickly enough due to OEM delivery delays, engine issues, and record-long backlogs. Mid-life aircraft fill the capacity gap immediately, making them far more valuable than usual.
2. How do rising lease rates influence the secondary market?
Higher lease rates for both new and older aircraft mean mid-life jets now generate stronger returns. Many airlines are extending leases to avoid expensive or unavailable replacements, which keeps demand high.
3. What makes mid-life aircraft attractive to lessors today?
They offer strong cash flow, faster placement, and multiple exit paths. Lessors can extend leases, re-market quickly, or pursue freighter conversions that extend the aircraft’s life and profitability.
4. Are maintenance and engine costs a major risk for mid-life assets?
They are a real challenge, especially with engine shortages and MRO bottlenecks. But the higher lease rates and strong re-deployment options often outweigh the added maintenance risk.
5. Will mid-life aircraft remain valuable once OEM production stabilises?
Their value may cool slightly, but not disappear. Cargo conversions, LCC growth, and fleet flexibility needs mean mid-life aircraft will stay strategically important even when new deliveries improve.
