The low-cost carrier is doubling down on a familiar partner, signing for hundreds of next-generation engines and decades of maintenance in a single move. Behind the contract is a French-led manufacturer whose engines have become the default choice for most of the world’s single-aisle jets.
Pegasus Signs Record Engine Deal for Its 737-10 Fleet
Pegasus Airlines has finalized an agreement with CFM International for 300 LEAP-1B engines, including spare units and a long-term support package.
This engine order mirrors the scale of the airline’s historic 100-aircraft Boeing 737-10 purchase, announced in December 2024. That aircraft deal was the largest in Pegasus history and one of the most ambitious single-aisle expansion plans in Europe.
CFM’s LEAP-1B, developed in France and the United States, is now at the center of one of the decade’s biggest low-cost fleet upgrades.
For a carrier built on tight schedules and high utilization, the contract is less about new hardware and more about locking in predictability. Every unscheduled engine removal means lost flights, refunds, and crew repositioning. A combined engine-and-maintenance deal reduces that risk.
An Old Friendship in a Brutally Competitive Market
A Long-Running Pegasus–CFM Partnership
Pegasus is not switching partners midstream. The Turkish carrier built its fleet around CFM engines, beginning with the CFM56 series that powered generations of Boeing 737 and Airbus A320 aircraft.
Over time, its fleet moved through several variants-CFM56-3, CFM56-5B, CFM56-7B-before shifting toward the LEAP family. That continuity matters. It gives Pegasus familiarity with performance, maintenance patterns, and spare-parts management.
There is also a milestone aviation insiders often cite: in July 2016, Pegasus became the first airline in the world to operate the LEAP engine in commercial service, on a flight between Istanbul and Antalya. The airline effectively served as an early proving ground for CFM’s new technology.
That early bet now feeds back into preferential pricing and deep technical cooperation-advantages rival engine makers struggle to match.
Why the LEAP-1B Fits a Low-Cost Workhorse
The LEAP-1B, selected for the Boeing 737 MAX family, is not a simple upgrade of the CFM56. It represents a generational shift in engine design.
- Composite fan blades reduce weight and withstand high stress.
- Ceramic matrix composites in hot sections allow higher temperatures and better efficiency.
- Advanced health-monitoring systems track wear and detect anomalies early.
CFM advertises about 15% lower fuel burn and roughly the same reduction in CO₂ emissions compared with previous-generation engines. For a low-cost carrier, that margin is significant: fuel is typically the largest operating expense after labor.
On dense short- and medium-haul routes, a 15% fuel savings can determine whether a fare stays profitable or must rise sharply.
The LEAP-1B is designed for high-frequency flying with quick turnarounds-exactly how Pegasus maximizes aircraft utilization. That focus on robust performance under constant use is one reason the engine has secured such a dominant share of the single-aisle market.
Boeing 737-10: More Seats, Same Runway
A Capacity Lever in Crowded Markets
The Boeing 737-10 is the largest model in the 737 MAX lineup. It can seat up to about 230 passengers depending on configuration, allowing Pegasus to carry more travelers on each flight without adding additional frequencies.
On busy Turkish and regional routes, airport slots and ground capacity can be constrained. Increasing seats per departure lets the airline grow without needing more runway time or additional gates.
The LEAP-1B supports this strategy by keeping operating costs per seat in check. Higher capacity usually means higher fuel burn, but improved efficiency spreads that cost across more passengers.
A Young Fleet as a Structural Advantage
Pegasus already operates one of the youngest fleets in the industry, with an average age of about 4.9 years. That brings several benefits:
- Lower fuel burn than older jets
- Fewer unexpected technical issues
- Easier compliance with tightening environmental regulations
By renewing and expanding its fleet with 737-10s and LEAP engines, Pegasus is leaning into that advantage. A modern fleet acts as a buffer against future fuel-price spikes and climate-related regulation-both of which can hit legacy carriers with older aircraft especially hard.
How a €3–5 Billion Deal Is Built
Engines First, Then Decades of Service Revenue
Neither Pegasus nor CFM has disclosed the contract’s exact value. Industry benchmarks, however, allow for a rough estimate.
List prices for a LEAP-1B typically fall in the €12–14 million range per engine. Airlines that buy in bulk and maintain long relationships often secure discounts of 40–50% off list. Under those assumptions, the engine hardware for 300 units could land around:
- Gross list value: about €3.6–4.2 billion
- After large-customer discounts: roughly €1.8–2.4 billion
Then come the layers that matter most to manufacturers’ bottom lines: spares and long-term maintenance contracts. Over a 20–30 year operating life, service deals often match or exceed the initial sale value.
Once maintenance and spare engines are included, analysts see a realistic total contract value between €3 billion and €5 billion.
For CFM, this is not just a large sale; it is a multi-decade revenue stream. For Pegasus, it is a hedge against inflation in labor, materials, and shop-visit costs.
The French-Led Giant Behind the Deal
CFM’s Grip on the Single-Aisle Engine Market
CFM International is a 50/50 joint venture between France’s Safran Aircraft Engines and U.S.-based GE Aerospace. It dominates engines for single-aisle (narrow-body) aircraft-the workhorses of global short- and medium-haul travel.
By 2025, more than 4,000 LEAP engines had been delivered across different variants. The program has become one of the fastest-growing in commercial aviation history.
Market estimates show why competitors feel the pressure:
| Segment | Engine maker | Estimated 2025 share | Main programs |
|---|---|---|---|
| Single-aisle | CFM International | about 70–75% | CFM56, LEAP-1A, LEAP-1B, LEAP-1C |
| Single-aisle | Pratt & Whitney | about 25–30% | PW1100G, PW1500G, PW1900G |
| Single-aisle | Others | under 5% | Niche and aging fleets |
| Widebody | Rolls-Royce | about 50–55% | Trent XWB, Trent 7000, Trent 1000 |
| Widebody | GE Aerospace | about 35–40% | GE90, GEnx |
| Widebody | Pratt & Whitney | about 10–15% | PW4000 (declining fleets) |
Across commercial aviation overall, CFM is estimated to hold around 45% of the market by installed fleet, largely due to its single-aisle stronghold. Rolls-Royce leads in long-haul widebody aircraft, but that segment is smaller in unit volume.
Why Airbus Still Benefits When Boeing Wins
While this contract is tied to Boeing’s 737-10, the LEAP family also powers Airbus A320neo aircraft via the LEAP-1A variant. On both sides of the Atlantic, airlines that choose CFM often value having the same manufacturer behind different fleets.
The more LEAP engines fly, the richer the operational dataset becomes. That feedback loop helps CFM refine maintenance intervals and software updates, indirectly improving reliability for both Airbus and Boeing operators. A Turkish low-cost carrier, a U.S. major airline, and a European flag carrier all benefit from the same growing knowledge base.
What This Means for Passengers and Investors
Ticket Prices, Noise, and Emissions
Passengers won’t see the LEAP-1B, but they will experience its effects. Lower fuel burn gives airlines more flexibility to keep fares competitive, especially on leisure-heavy routes where price sensitivity is high.
Noise and local emissions also drop with the latest engine generation. That matters for airports dealing with night curfews and environmental opposition. Quieter, cleaner aircraft can secure more flexible operating conditions, which can support more frequent flights or better departure times.
Key Terms Worth Knowing
Two terms come up often in deals like this:
- Single-aisle (narrow-body): Aircraft with one central aisle-such as the Boeing 737 and Airbus A320-mostly used on flights lasting one to six hours.
- Long-term service agreement (LTSA): A contract under which the engine manufacturer manages maintenance over many years, often paid per flight hour.
Under an LTSA, the manufacturer takes on much of the technical risk. If unexpected issues arise, it must fix them without blowing up the airline’s budget. In return, it gains predictable income over decades.
Risks and Scenarios: What Could Go Wrong, and What Could Go Right
No large engine program runs perfectly. The LEAP family has already faced early issues, from component wear to supply-chain bottlenecks. If shop visits take longer than planned or spare parts are limited, airlines can end up short of aircraft during peak seasons.
That is where locking in additional spare engines-as Pegasus has done-acts as insurance. The carrier can rotate engines off-wing for maintenance while keeping aircraft flying with replacements.
On the upside, if fuel prices rise sharply, the value of a 15% efficiency gain increases quickly. A scenario in which oil returns to very high levels would punish airlines with older fleets and reward operators that invested early in engines like the LEAP-1B.
For the French side of CFM, through Safran, this Pegasus deal adds another long-term pillar to its civil aerospace business. Between booming single-aisle demand and a pipeline of support contracts extending into the 2050s, the company’s dominance in this niche looks set to endure-so long as it can keep delivering engines on time and to specification.
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