MRO 2026: Industry Leaders Predict Trends, Challenges And Investments

To assess changes and challenges expected in the aviation aftermarket in 2026, Inside MRO invited a dozen airline, aviation aftermarket and OEM executives to share their views:

Ziad Al Hazmi, Lufthansa Technik Middle East CEO
Rob Cords, ATS CEO
Rafael Gomez, MRO Iberoamerica CEO
Ashok Gopinath, GMR Aero Technic president and accountable manager
Paul Keenan, Rolls-Royce director of global aftermarket operations
Jeffrey Lam, ST Engineering’s president of commercial aerospace
Olivier Legrand, Revima president and CEO
David Marcontell, JetBlue vice president of technical operations
Gerald Steinhoff, HAECO chief commercial officer
Caroline Vandedrinck, Willis Lease Finance Corp. senior vice president of materials and services
Gert Wagner, MTU Maintenance Zhuhai general manager, president and CEO
Jong Seok Yoo, Korean Air executive vice president, chief safety officer
and chief operating officer

What changes or trends do you expect to emerge in the aviation aftermarket in 2026?

Ziad Al Hazmi

The aviation aftermarket will continue to face strong demand pressure, driven by fleet growth, high aircraft utilization and the need to keep assets operational despite ongoing constraints. Two trends will stand out.

First, parts availability and supply chain resilience will remain a defining topic. While the situation has improved compared with the immediate post-COVID-19 pandemic period, lead times for certain components are still long. As a result, MROs will increasingly focus on proactive planning, higher repair ratios and closer collaboration across the supply chain.

Second, digitalization will move firmly into execution mode. Predictive maintenance, data-driven planning and artificial intelligence (AI)-supported decision-making will become embedded in daily MRO operations.

Rob Cords

With aircraft deliveries from OEMs improving, the aviation industry can expect to see more assets become available from retirements, requiring greater discipline in near-term acquisitions as prices moderate from current levels. This activity will also spur airlines to look again at programs like ATS’ integrated spares, used serviceable material (USM) and component repair solutions that reduce maintenance expenditures as fleets are drawn down.

In addition, part effectivity efforts will ramp up as parts are migrated or up-modded from older-generation to newer-generation aircraft. As an example, our ATS asset management customers have interest in heat transfer components on Boeing 737NG aircraft that we are modifying to support 737 MAX aircraft.

A broader set of MROs will migrate from individuals utilizing AI on an ad hoc basis to more organized, companywide efforts that seek to extract practical applications from expensive-sounding buzzwords. Different than technology advancements in the past where midsize and small companies were typically further behind the adoption curve, this wave will see these previous “laggards” experiment with and adopt AI models more quickly. AI initiatives supporting administrative or back-office tasks as initial testing grounds will start to give way to those driving front-line performance, quality and safety.

Rafael Gomez

I expect the North American aftermarket to continue experiencing a structural shortage of heavy-maintenance slots, driven primarily by the persistent lack of qualified aviation technicians in the U.S. Current U.S. industrial policy is accelerating the reshoring of manufacturing jobs, further tightening the labor market and making it increasingly difficult for the MRO sector to expand its domestic technical workforce. As a result, capacity constraints and cost pressures will remain defining trends.

Airlines will increasingly need to prioritize their available U.S.-based technicians for line maintenance and transit work, which will intensify the search for reliable offshore alternatives to cover heavy checks. This dynamic is already pushing more work toward Latin America—particularly Mexico—where FAA-certified providers can offer both the technical capability and scalability needed to offset U.S. capacity limitations.

Ashok Gopinath

In the coming year, the aviation aftermarket will clearly shift from a capacity-led model to a capability- and ecosystem-led model.

The first key trend will be the rapid rise of composite maintenance and repair capabilities. With new-age aircraft like the Airbus A320neo, Airbus A350, Boeing 787 and future platforms incorporating a much higher percentage of composite structures, traditional metal-centric MRO models will no longer suffice. The ability to inspect, repair and certify composite structures will become a core requirement rather than a niche capability.

Second, engine and component aftermarket stress will remain a defining feature. Limited global engine shop capacity, parts shortages and extended turnaround times will push airlines to seek MRO partners that can offer reliability, predictability and end-to-end solutions within their geography.

Third, localization of MRO will accelerate sharply. Airlines and lessors will increasingly prefer in-country MROs to reduce aircraft downtime, logistics costs and foreign exchange exposure. In India, this trend directly supports the growth of domestic airframe, component and eventually widebody capabilities.

Finally, talent and digital readiness will become differentiators. The industry will realize that infrastructure alone is not enough.

This year will favor MROs that are integrated across assets, data and talent.

Paul Keenan

I’m excited about the digital transformation that we are seeing, with a clear shift from traditional scheduled maintenance toward predictive maintenance. Every day, we analyze more than 5 million engine parameters transmitted from Rolls-Royce-powered aircraft. This allows us to detect any abnormalities in the data, diagnose the cause and provide timely recommendations directly to operators to optimize maintenance.

Second, from an operational perspective, there are also significant opportunities to improve efficiency through targeted workforce development. A recent example is the opening of our Aftermarket Support Facility (ASF) in Derby, England. The building was identified as a space that could be quickly adapted to provide quick-turn capability, complementing the introduction of the Trent 1000 Durability Enhancement package.

The facility allows us to introduce the package into engines more quickly and therefore deliver immediate time-on-wing benefits across the fleet. At the same time, it also enables other facilities in the network to remain focused on traditional overhaul and repairs. In effect, the ASF acts as the fast lane for introducing new technology, allowing customers to access upgrades as soon as possible.

Jeffrey Lam

In 2026, we can expect to see a stronger push for automation, AI and data analytics as MRO providers tackle challenges head-on. Opportunities include enhancing safety, quality and efficiency and improving on-wing time. Automation and AI will help address labor shortages by increasing operational capacity, while data analytics will improve decision-making, from parts planning to predictive maintenance. Sustainability initiatives will also need to find a path to maturity as market expectations drive industry behavior.

The aviation aftermarket will continue to be shaped by ongoing challenges such as supply chain disruptions and labor shortages. This makes it even more critical for MRO providers to be resourceful and productive, looking harder into the use of technology to enhance productivity and optimize service delivery.

At ST Engineering, we remain committed to investing in the latest technologies that not only improve efficiency but also provide sustainable solutions for our customers. Our focus on smart MRO solutions, such as AI-powered engine health monitoring and predictive analytics, is designed to enhance productivity while addressing the challenges of the modern aviation ecosystem.

Olivier Legrand

I believe digital transformation will significantly accelerate in 2026, with AI fueling a number of those changes. This should apply to many areas in the aftermarket, from supply chain to predictive maintenance, in an effort to operate a leaner and more efficient environment. While the aviation industry was hit hard during the COVID-19 and Ukraine war outbreaks, it has conversely significantly recovered, and demand for travel is reflected in record aircraft orderbooks. With this great news came large shortages of material and labor, which resulted in cost increases. It is therefore critical for airlines and the aftermarket ecosystem to find ways to improve our efficiency. Those who don’t embrace these changes will be struggling.

David Marcontell

Expect fewer Pratt & Whitney geared turbofan-powered aircraft-on-ground incidents and increasing strain on CFM Leap-powered aircraft due to durability, supply chain and turnaround challenges. We are still several years away from these engines becoming mature and the currently tight and elevated market for International Aero Engines V2500 and CFM56-7B engines and material dropping down to a more normal demand cycle.

Within the North American market, I see continued very tight airframe and heavy maintenance capacity. But on the technology front, I think 2026 will bring greater and faster deployment of emerging AI tools. These tools won’t be agentic AI, but we are starting to see some very real use and deployment of large language models and machine learning in practical applications from both new entrants as well as existing software platforms.

Gerald Steinhoff

I expect MRO spending for airlines to increase further. Our former borderless MRO industry has developed uncertainty and restrictions. Several factors are driving up costs, including material, while OEMs rebalance their supply chains. Long turnaround times will continue requiring larger inventory cost. Urgently needed capacity investments will further push margin requirements upward. Tariff volatility will remain a cost factor, leading to regionalization of inventories and, as a consequence, to lower economies of scale. MRO labor rates will continue to rise with rates of 5% and above. The shortage of engineers and technicians will prevail in the near future. The importance of IT and digital will further push wages, driven by higher skill sets.

Some airlines may in-source MRO and change their demand for outsourced power-by-the-hour contracts to in-house assets and partner with MROs that provide repair management.

In the airframe maintenance sector, I expect further long-term agreements to secure capacity and a switch from a shopping mentality to long-term partnerships, booking whole lines instead of nose-to-tail options.

Overall, MROs will face higher investments, caused by:

• The need for digitalization and technology to improve efficiency on the shop floor, reduce the pain of labor shortages and for data sharing between MROs and airlines.
• Capacity extensions.
• Adding new-generation aircraft and engine MRO capabilities.
• Training schools and partnerships.

To cope with these higher uncertainties and costs, further consolidation and partnerships in the aviation sector are highly likely.

Caroline Vandedrinck

We will continue to see delays of new aircraft resulting in older aircraft staying in the fleet longer, which continues to restrict USM availability. Supply chain issues are still lingering as demand for old generation and new generation stays high and demand is higher than supply.

With money available in private equity as a result of a good stock market, mergers and acquisitions will continue to be strong, and prices for companies will remain high.

Gert Wagner

We expect pressure on the MRO networks specializing in Leap and geared turbofan engines to increase further, specifically for shop-visit slot demand, in order to reduce the number of grounded aircraft. In addition, the demand on narrow- and widebody products, such as the CFM56 and V2500 as well as the GE CF6-80C2 and GE90-110/115, is expected to remain high, in part due to delivery delays of new-generation aircraft.

Jong Seok Yoo

In 2026, I anticipate the market will see increased competition as several large-scale MRO facilities initiated in 2023 and 2024 begin full-scale operations. We will see significant capacity coming online simultaneously, including the Air China-Rolls-Royce joint venture BAESL engine facility in Beijing, and new hangars for SIAEC in Malaysia and HAECO in Xiamen, China.

We are also monitoring shifts in regional demand. As India strengthens its domestic capabilities—notably with Air India’s Bengaluru facility and the new Leap maintenance plant in Hyderabad—we expect a reduction in the MRO volume that traditionally flowed into Southeast Asia, altering regional market dynamics.

The simultaneous opening of these facilities will place additional pressure on the industry’s workforce supply, likely influencing wage structures. In response, I believe MROs will accelerate the integration of automation, such as AI and robotics, to support workforce efficiency.

Finally, continued delays in new aircraft deliveries will necessitate life-cycle extensions for current fleets, including the Boeing 777 and the Airbus A320ceo, A330ceo and A380. This trend will likely drive sustained activity in the USM and aircraft part--out sectors.

What will be the biggest challenge for MRO in 2026?

Ziad Al Hazmi

The biggest challenge will be human resources, closely followed by parts availability. The industry is already experiencing a significant shortage of qualified maintenance personnel, and this will intensify as fleets continue to grow.

In the Middle East specifically, the situation is becoming critical. According to the Airbus Global Services Forecast for 2024-43 the region will require around 53,000 additional commercial aircraft maintenance technicians over the next 20 years. This challenge is no longer theoretical; it is already affecting capacity and turnaround times today.

To address this, MROs must invest not only in recruiting and training but also in digital tools that help existing teams work more efficiently and focus on value-added work rather than reactive firefighting.

Rob Cords

As airlines update their service offerings to align with evolving customer trends, MROs are supporting a high number of modification visits. These visits require a broader set of suppliers than typical heavy maintenance visits, ensuring that milestones are met for material—seats, monuments, overhead bins, etc.—as well as engineering and regulatory. The increased focus ATS placed on ensuring these industry participants stay in lockstep in 2025 will carry over into 2026.

Airlines have made commitments to their investors and passengers, while MROs have scheduled labor to align with projects. Ensuring airlines and MROs can keep their businesses moving forward will take strong project planning and execution.

Labor challenges will persist, although they will be less severe than a couple of years ago. At ATS, we have focused on improving pay for our people as well as investing in an employee value proposition effort. Here we identified the characteristics of our workplace most important to our people and then doubled down on our strengths or shored up places where employees are seeking more. This has meant reenergizing initiatives that focus on frontline supervisor training and career development, among other things. Efforts to date have resulted in a 17% improvement in our employee net promoter score (NPS) from an already impressive NPS two years ago.

Rafael Gomez

One of the biggest challenges in 2026 will be establishing the strategic, medium- and long-term partnerships needed between airlines and the emerging maintenance providers that are adding capacity outside the U.S. As U.S. airlines confront a structural technician shortage and rising domestic costs, they will be forced to redesign their maintenance supply chains and incorporate offshore capacity in a way that was not necessary in the past.

For new FAA-certified providers in regions such as Mexico, the challenge will be securing long-term commitments that justify the significant investment required to build and sustain infrastructure, technical capability and workforce development. The industry cannot continue under a “business as usual” model within the U.S.—durable, forward-looking partnerships will be essential to bridge the capacity gap and support fleet reliability across North America.

Ashok Gopinath

The biggest challenge for MROs in 2026 will be scaling operations without compromising quality, safety and turnaround time—primarily due to skilled labor constraints.

While demand for maintenance will remain strong, the industry will face:

• Acute shortages of licensed engineers, technicians and planners.
• Rising attrition to airlines and overseas markets.
• Rapid induction of next-generation aircraft and composites, requiring new skill sets.

Paul Keenan

This is where the distinction between capacity and capability becomes critical. MROs that treat training as an afterthought will struggle to deliver consistently. In short, talent—not hangars—will be the binding constraint in 2026.

Industrywide supply chain friction is likely to remain a key challenge, compounded by an increase in demand linked to the growth of our in-service fleets. In response, we have allocated additional investment this year to ensure we can meet that demand, creating short-term surge capacity while we deliver plans to increase MRO capacity significantly by 2030. This will help ensure scheduled maintenance can be carried out as efficiently and reliably as possible.

Another major focus area is our people. Sustainable growth requires building a stable, well-trained workforce that can support predictable demand over the long term. Recruiting, training and retaining talent at the right pace will be critical to meeting future demand while maintaining operational excellence.

Jeffrey Lam

The shortage in aviation maintenance labor is expected to be one of the significant challenges facing the MRO industry in 2026. The ongoing talent crunch, driven by experienced technicians retiring and fewer young professionals entering the field, is likely to be further compounded by the time and costs associated with training and certification. This will require MRO providers to place a strong focus on recruitment, training and retention strategies to ensure a sustainable workforce that can keep pace with air travel and MRO demand. Alongside this, other challenges, such as supply chain disruptions, will also play a role in shaping the future of MRO.

Olivier Legrand

Retaining, recruiting and training talent should be the biggest challenge in 2026. The significant growth of aviation coupled with massive retirements of experienced mechanics, engineers and technicians in the years to come will require well-thought strategies and road maps to offset. The ability to provide rewarding, challenging and exciting work environments will be key for organizations to retain and attract talent. The ability to train skilled resources efficiently and rapidly will also be necessary, both for new recruits and existing employees as new aircraft use more composites as well as more electric and more complex systems.

David Marcontell

By far, the biggest challenge is cost escalation. Revenue—particularly airline revenue—is not rising as fast as costs, excluding fuel, are. The second-biggest challenge will continue to be a shortage of skilled workers, such as aviation maintenance technicians, engineers, planners and logisticians.

Gerald Steinhoff

Three things: skilled labor shortages, geopolitics and capacity shortages.

Caroline Vandedrinck

Demand for MRO will not meet supply. Lack of labor will continue to be an issue.

Gert Wagner

Not surprisingly, the supply chain issue will continue to affect the market in the coming year on account of delays in the delivery of new-generation aircraft and engines. We will also have to keep an eye on unstable political situations around the globe and uncertainty around taxes and tariffs, as well as relationships among China, the U.S. and Europe.

Parts availability will likely continue to pose a challenge and affect turnaround times across the industry. Those factors are directly influencing capacity: Parts availability affects how quickly an engine can be redelivered, and that, in turn, affects how much throughput an MRO service provider can handle and offer the market. The MTU network has been actively mitigating the supply chain issue, in particular our colleagues at MTU Maintenance Lease Services, which in 2025 finished setting up its parts supply network after opening a storage and distribution warehouse in collaboration with Kuehne + Nagel close to our site in Zhuhai, China.

By planning shop visit needs well ahead and conducting teardowns within the MTU network to generate USM, we are able to take on the parts shortage directly, as opposed to grappling with market dynamics.

Jong Seok Yoo

The primary challenge will be securing a stable supply chain while managing cost volatility. Post-pandemic normalization is still lagging, and simplified production lines are causing persistent shortages in specific components.

To mitigate this, we are prioritizing the expansion of our supplier network and actively consulting with manufacturers to encourage the expansion or diversification of their production lines.

In parallel, we are looking beyond traditional purchasing to include USM, part-outs, 3D printing and parts manufacturer approval parts. Securing these diverse pipelines is vital for maintaining equivalent quality while controlling costs, especially as tariffs and market shifts drive up prices.

I also urge OEMs to move away from restrictive aftermarket policies. By enhancing technical collaboration and sharing data on bottleneck parts, we can collectively build a much more resilient supply chain for everyone.

Second, for Korean Air, our defining challenge in 2026 is the complete integration with Asiana Airlines. As we prepare to operate as a single entity, we are optimizing our facilities, equipment and certifications.

We are reallocating maintenance resources and advancing key infrastructure projects, including our new engine complex and the Incheon hangar. Beyond hardware, we are focused on seamlessly integrating our workforce to ensure our teams are aligned both culturally and operationally. This will be the year we solidify our foundation as a global network carrier.

If you could invest in any one area of the aviation aftermarket, where would you put your money?

Ziad Al Hazmi

I would invest in training and digital capability, particularly AI, as these two areas are strongly connected.

First, training. The industry must prepare technicians for next-generation aircraft, new materials and increasingly complex maintenance environments. Long-term success in the aftermarket depends on building, developing and retaining skilled people.

Second, AI and data-driven platforms. Predictive AI already plays a major role in forecasting failures and optimizing maintenance intervals, while generative AI models open new opportunities to leverage large volumes of operational and engineering data. At Lufthansa Technik, digital platforms such as Aviatar bring these capabilities together, supporting predictive maintenance, smarter planning and better decision-making across the MRO value chain.

In the Middle East we have developed an in-house digital platform where data from multiple systems is brought together and made accessible through intelligent automation, enabling faster decision-making and reducing manual effort. These tools are already helping our teams focus on value-added tasks rather than administrative work.

Third, investment in spares and parts availability. Given ongoing supply chain constraints, having the right spares positioned at the right locations has become a critical differentiator. Strategic investment in spare pools and repair capabilities improves resilience, reduces aircraft-on-ground risk and enables MROs and operators to maintain reliability even during periods of market disruption.

The real return on investment comes from empowering well-trained people with intelligent digital tools and reliable parts availability. Together, these elements will define resilience, efficiency and competitiveness in the aviation aftermarket beyond 2026.

Rob Cords

ATS is fortunate to have collaborative and strong investor support and therefore is making sizable investments today. Our largest investments happening right now are in two areas. First is in acquiring businesses and their associated talented staff to support expansion of our component and asset management businesses. Targets include new capabilities and technologies as well as expanding our aircraft platform reach. And second is in tooling and equipment to expand our Airbus A220 MRO services significantly at our Kansas City, Missouri, facility.

Rafael Gomez

I would prioritize investment in strengthening both physical and human maintenance infrastructure that directly aligns with the long-term needs of major U.S. operators. The greatest value will come from expanding heavy maintenance capacity in locations capable of supporting U.S. fleets while simultaneously developing the technical workforce required to sustain that growth.

Such investment should be anchored in strategic, long-horizon partnerships between airlines and MRO providers—deeper, more integrated customer-supplier relationships that create the stability needed for significant capital deployment. The real opportunity lies in coordinated investment that ensures reliable, scalable and cost-effective maintenance capacity for North America’s future fleet demands.

Ashok Gopinath

If I had to invest in one area, it would be in an integrated component MRO ecosystem and new-age airframe capabilities, tightly coupled with skilling and training.

Critical components account for the largest share of aftermarket spend and continue to face structural capacity shortages globally. However, sustainable success in this space depends not just on infrastructure, but on:

• Deep technical expertise and certifications.
• OEM and lessor partnerships.
• A reliable pipeline of trained engineers and technicians.

This is where combining MRO capability with an institutionalized training platform creates a long-term competitive moat. It reduces dependency on volatile labor markets, improves turnaround times and enhances quality and safety outcomes.

In markets like India, this integrated approach—already reflected in GMR Aero Technic’s strategy—represents the most compelling and defensible investment opportunity in the aviation aftermarket.

Paul Keenan

Digital transformation, particularly leveraging AI, is a priority. AI has the potential to accelerate and optimize predictive maintenance significantly. This will unlock greater value for operators while improving stability across capacity and capability programs.

High-frequency data provides around 3,000 parameters every second of every flight. Our new cloud-based engine health monitoring platform gives us the ability to manage and analyze large amounts of data, while our Blue Data Thread capability enables us to receive this data from operators in a timely manner.

Only a small number of high-frequency data analytics are live today, compared with a much larger number of analytics based on the Aircraft Communications Addressing and Reporting System, but this represents a step change in the breadth and depth of issues we can detect. Harnessing this data effectively is key to optimizing MRO and delivering the next generation of aftermarket performance.

Olivier Legrand

If I had to choose one area, I’d pick investing in more facilities so we could serve customers close to where they are, which also reduces transportation costs and time.

David Marcontell

Blockchain. Someone is going to figure this out and get it right. It makes so much sense to do it, so the only question is simply: What platform will win out?

Gerald Steinhoff

Engines. There is an extreme shortage in upcoming years on new engine types, especially the Leap. Legacy engines are running much longer than ever expected, so there’s also a strong need for engineering capacity to support them.

Caroline Vandedrinck

Casting for manufacturing airfoils.

Gert Wagner

Investing in engine MRO, parts supply and capacity expansion is always a prudent way to spend money.

Jong Seok Yoo

One of the most promising investment areas is the transition toward AI-enabled automation. As the industry faces increasing difficulty in securing skilled personnel, automation is a critical mid-to-long-term necessity.

This is particularly true for engine MRO, where complexity is rising with next-generation powerplants, such as the Pratt & Whitney geared turbofan (GTF). For these engines, ensuring quality stability and minimizing human error is more important than ever.

To respond to this, we are seeing a shift toward AI-based inspection, data-driven decision support and robotic automation for specific disassembly and assembly processes. In fact, several OEMs and leading MROs are already automating specific assembly processes for GTF engines.

These developments suggest automation is moving beyond experimental initiatives to become an essential component of next-generation operating models. We expect these investments to deliver meaningful benefits—not just in productivity, but in ensuring quality consistency and enhancing cost competitiveness.

Ultimately, I view the transition toward AI-enabled automation not merely as a technological upgrade but as a strategic initiative that will shape the future competitive landscape of the global engine MRO market.

I also view predictive maintenance as a strategic priority to address the complex operating environment we face today. The industry is pivoting from traditional reactive or scheduled preventive maintenance to a predictive framework driven by big data and AI.

By identifying potential defects in advance, we can address persistent workforce constraints through greater operational efficiency. Furthermore, accurate demand forecasting allows us to navigate supply chain uncertainties more effectively. Ultimately, this approach is key to preventing aircraft-on-ground incidents, thereby securing operational stability and safety.

Korean Air has been actively investing in this digital transition since 2023. We are currently integrating global platforms, such as Airbus Skywise and Boeing Airplane Health Management, while building a customized internal environment to lead this shift in the MRO market.