The circular economy takes flight: Insights on aviation’s sustainable future

For an industry often scrutinised for its environmental impact, a quiet revolution in resourcefulness is underway. Picture a jet engine born on one aircraft, finding new life on another instead of ending up as scrap. This isn’t science fiction – it’s the emerging reality as aviation embraces the circular economy.

In simple terms, a circular economy means moving away from the old “take, make, dispose” model and instead keeping all products and materials in circulation as long as possible. By extracting maximum value from resources in use and designing out waste, circular principles aim to reduce, reuse, and recycle at every opportunity. These principles are now taking flight in aviation, transforming how we build, maintain, and retire our aircraft – and, in the process, reshaping business strategy across the industry.

The sector is also grappling with the safety implications of sustainable practices, ensuring recycled composites and sustainable aviation fuels meet rigorous regulatory standards.

From linear to circular: A new flight plan

Aviation’s adoption of circular economy practices is still in its early days, but momentum is building fast. Traditionally, retired airliners might languish in desert boneyards, their components scavenged haphazardly or left to rust.

Today, that linear lifecycle is giving way to a more regenerative model. Thanks to advanced recycling and refurbishment techniques, well over 90 per cent of a retired aircraft’s weight can now be reused or recycled. Roughly 40–50 per cent of an aircraft is harvested as serviceable parts, and most of the remainder is reclaimed as raw material.

Remarkably, nearly 100 per cent of modern jet engine components are recyclable or reusable under the right conditions — a testament to how far circular innovation has come. And it’s not just about environmental stewardship; this is also good business. When an aircraft reaches end-of-life, it’s no longer viewed as scrap but as a valuable resource. Key parts are removed, inspected, and overhauled to “as-good-as-new” condition.

At the heart of this shift are the engines — typically the most valuable asset on a plane. In many cases, a used engine in good condition is worth more than the airframe it came from. These powerplants can be transplanted into another aircraft or placed into a leasing pool, extending their service life by years. One airline’s retired engine becomes another’s cost-effective upgrade.

At Aeras Aviation, we’ve seen this shift firsthand. Starting as a traditional parts trader, we’ve evolved into a full-lifecycle partner serving some of the world’s most respected aviation companies — including Lufthansa, DHL, Air France and Delta Airlines. While circularity promises both economic and environmental gains, safety remains the sector’s non-negotiable baseline.

Engines get a second life

Jet engines are a prime example of circular principles in motion. These precision machines are built to be overhauled multiple times. Each restoration — involving meticulous inspections, refurbishment, and part replacement — adds years of viable use. What was once considered worn out is now a revenue-generating, service-ready asset.

What can’t be reused is often recycled. High-value metals, such as titanium, nickel, and cobalt, are melted down and reintegrated into the aerospace supply chain. Yesterday’s engine becomes tomorrow’s turbine blade — or finds life in a different industry altogether.

Across the industry, full lifecyle programmes are enabling airlines and maintenance providers to extend the useful life of engines.

Instead of opting for new engines, many are sourcing, refurbishing, and redeploying existing engines — not only extending the useful life of the hardware but also drastically reducing both cost and carbon impact. That’s sustainability at scale.

The business case for circularity

This model is no longer niche. Airlines operating in a cost-constrained, post-pandemic landscape are now “sweating the asset” longer than ever — and they need dependable, certified partners to help them do it. The cost of new aircraft continues to rise — a narrow-body like the Boeing 737 or Airbus A320 now surpasses $100m — while global supply chain bottlenecks have made fresh deliveries less reliable.

As a result, the market for used serviceable material (USM) is booming. Reusing or overhauling Engine components to OEM standards can be 20–40 per cent more affordable than buying new ones. Airlines and MROs know this, and increasingly, so do investors.

At the same time, regulators and ESG-conscious investors are exerting pressure on aviation to take responsibility beyond flight emissions. The sector’s net-zero by 2050 pledge requires a systemic rethink — and circularity is a key part of that. The European Union’s push for a circular economy, including stricter controls on aircraft disassembly and waste management, shows that this is not just a trend but a policy-backed shift. Companies that stay ahead of this curve won’t just stay compliant — they’ll lead.

A mindset shift for the industry

Circularity also unlocks new business models: engine leasing, power-by-the-hour contracts, predictive maintenance, and more. These models not only extend engine lifespans but also create recurring revenue and deeper customer relationships.

Ultimately, aviation is proving that sustainability and profitability can co-exist — and even reinforce each other. If a safety-critical, regulation-heavy sector like ours can make circularity work, so can others. And that’s an opportunity for business leaders across industries.

Taking off, responsibly

The circular economy in aviation is no longer an academic idea — it’s a practical, scalable solution already reshaping how value is created. It’s about seeing every retired part not as waste but as potential. It’s about extending the life of what we already have rather than defaulting to new.

By reimagining what’s possible at the end of an engine’s life, we’re not just saving part, we’re creating a smarter, more responsible future for air travel.

Demetrios Bradshaw is the CEO of Aeras Aviation.

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