Freighter Values Surge as Narrowbody Lease Rates Ease, IBA Says

Freighter aircraft values continued to strengthen in the third quarter of 2026, led by a sharp increase in Boeing 747-400 freighter valuations, while lease rates for narrowbody passenger aircraft softened as supply conditions gradually improved, according to aviation consultancy IBA.

IBA said the Base Values of factory-built and converted Boeing 747-400 freighters increased by an average of 114% between the second and third quarters of 2026, driven by the enduring value of their engines and components despite the fleet’s average age exceeding 26 years.

Values also increased for converted narrowbody freighters. Base Values for Boeing 737-800BCF and Airbus A321-200 passenger-to-freighter aircraft rose by an average of approximately 17%, supported by higher engine values, stronger feedstock pricing and growing confidence in established conversion programs. Boeing 777 converted freighter programs also strengthened, with Base Values for the 777-200LRMF and 777-300ERSF increasing by an average of 17% and 19%, respectively.

In contrast, IBA reported that lease rates for narrowbody passenger aircraft are declining from the record highs seen during the post-pandemic supply shortage. New Airbus A320neo aircraft continue to command market lease rates of at least US$400,000 per month, while comparable Boeing 737 MAX 8 aircraft have recently been placed in the high US$300,000 range.

Lease rate declines have been more pronounced among five-year-old A320neo and 737 MAX 8 aircraft as engine and component values become an increasingly important part of overall aircraft economics. IBA also noted that the teardown of relatively young aircraft, initially concentrated among Pratt & Whitney-powered A320neo family aircraft, is now extending to the 737 MAX fleet as demand for engines, limited MRO capacity and component shortages increase the value of spare assets.

Previous-generation narrowbody lease rates have also declined. Since July 2025, monthly lease rates for 12-year-old Boeing 737-800 aircraft have fallen approximately 11% to US$228,000, while comparable Airbus A320-200 aircraft have declined around 13% to US$220,000.

IBA expects increasing secondary market availability and easing operator demand to continue putting downward pressure on narrowbody lease rates. However, strong demand for engines and scarce components is expected to continue supporting underlying aircraft values despite the softer leasing environment.