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Airbus vs Boeing: analyzing current narrow-body airliner lease costs amid global trends

Airbus vs Boeing: analyzing current narrow-body airliner lease costs amid global trends
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Guillaume Faury Airbus CEO | Official Website

In November 2024, an unusual story made headlines when a leased Russian Aeroflot A320-200 was released from Munich Airport in Germany after being stranded for over two years due to sanctions imposed on Russia in 2022. The aircraft incurred €460,000 or $493,000 in parking fees before the leasing company could retrieve it for new operators. It appears that the aircraft was not returned to Aeroflot.

This incident raises questions about the leasing rates and value of an Airbus A320-200 and how these rates compare between current and previous-generation aircraft. According to data provided by IBA Insight, market lease rates for narrowbody aircraft have remained steady since September 2024 following a significant increase in late 2023.

Other narrowbody jet-powered passenger commercial aircraft on the market include the Boeing 757 (out of production), Airbus A220 (formerly Bombardier CSeries), Embraer E-Jet series, and China's COMAC C919, which is not certified to operate in the United States or Europe.

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Monthly market lease rates for narrowbody aircraft are as follows:

- Boeing 737 MAX 8 (Current generation, New): $400,000

- Airbus A320neo (Current generation, New): $400,000

- Airbus A321neo (Current generation, New): $460,000

- Boeing 737NG (Previous generation, Midlife): $230,000-$250,000

- Airbus A320ceo (Previous generation, Midlife): $230,000-$250

The leasing data focuses on two main families of narrowbody aircraft: Boeing 737 and Airbus A320. While the Boeing 737 has been in service since 1968 and has delivered more than any other jet-powered commercial airliner with over 11.2 thousand deliveries; however its lead is eroding fast. The Airbus A320, which entered service in March1988 with Air France as its launch customer has consistently outsold its rival from Boeing with almost eleven thousand orders. This year it is expected to overtake cumulative deliveries of B737s despite a twenty-year head start by latter!

Leasing rates for new Airbus A320neo and Boeing737 MAX8 aircraft are around$ .4 million per month while their market value stands at approximately$55 million each though slightly higher price tag applies former model compared latter one respectively!

Airbus says "The highly fuel-efficient single-aisle jetliner that features new engine options(LEAP-1A/PW1100G) along Sharklets wingtip devices delivers upto20percent savings both terms fuel burn CO emissions besides offering longest- range capability among family members able fly nonstop distances reaching4000nmi aboard comfortably seating configurations accommodating anywhere between180- passengers typically arranged dual-class layouts maximum capacity high-density versions! "

The monthly lease rate commands premium being priced region$460K whereas fair- market valuation stands best performer pushing upper limits nearing$64M mark depending specifications tailored longer-haul operations!

Lease extensions continue trending previous-gen models like CEO/NG variants keeping transition low thereby restricting availability potential lessees wile maintaining relatively high prices despite aging fleets showing minimal recent months fluctuations contracts signed midlife examples falling somewhere around$ .23-.25M range respectively per annum basis!

Widebodies understandably command substantially higher fees current-gen Dreamliner/A350XWB fetching approx.$1+M monthly whereas older triple seven / three thirty counterparts come cheaper half those amounts yet still exhibiting notable rebounds lately possibly driven supply shortages manufacturers struggle meet growing global demands ramping productions sufficiently fast enough satisfy carriers' needs extending operational lifespans average ages upwards trend industry-wide observations reported insights reveal!"

Organizations Included in this History
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