Aviation insurance claims costs rose across every tracked category in 2025 to 2026, with increases ranging from 6% to 10.8%, according to McLarens Aviation's annual Claims Cost Index.
The index was compiled from claims data across McLarens Aviation's network of more than 30 offices worldwide. The steepest rises were in major repairs, original equipment manufacturer costs, and aircraft on ground charges, up 10.8%. General aviation labour costs rose 10.5% and light aircraft piston propeller strikes climbed 10.3%.
Maintenance, repair, and overhaul (MRO) facilities rose 8.2%. Engine-related categories continued to climb, with fan blade costs up 7.5%, fan engine repairs 7.2%, and regional engine parts such as turboprop engines 6.3%. Hangars rose 6.9%, OEM price lists across the top 100 items 6.8%, radomes and slats 6.6%, and power by the hour contracts 6.4%.
Airline engineer labour costs recorded the lowest rise in the index at 6%. OEM specialist materials such as landing gears produced higher increases, generally running into double digits.
"What stands out this year is the consistency of the trend rather than any single spike," said John Bayley, global technical director at McLarens Aviation. "Looking at the last three years of data side-by-side, there's no real peak or trough, it's a steady, year-on-year increase. This is no longer a post-pandemic correction; it reflects a genuine structural shift in how aircraft are maintained, repaired and resourced."
The findings align with independent industry data. Oliver Wyman's Global Fleet and MRO Market Forecast 2026-2036 published in February found that average maintenance labour rates have settled at a persistent annual growth rate of 5.5% to 6%. That is roughly double the pre-pandemic baseline of around 3%.
Europe recorded engine labour rate growth of 7.4% in 2025, above the global average. Behind the McLarens figures are a familiar set of drivers. Years of limited apprenticeship intake and retirements among experienced engineers continue to push up labour costs, particularly in general aviation.
Specialist materials and components remain in tight supply. One widely used engine type has seen fan blade costs climb 135% over seven years, an average annual increase of 19.3%. Global MRO demand reached US$136 billion in 2025, up 8% year-on-year, and spending is expected to approach US$193 billion by the end of the decade.
The index period also coincided with renewed geopolitical volatility and disruption to fuel prices. Aviation insurers have flagged supply chain disruption and claims inflation as growing underwriting concerns.
There were some signs of resilience. Airline engineer training is reportedly picking up after years of underinvestment. Bayley noted that audit scrutiny of a major OEM repair quote, in one recent case, helped reduce the final cost by roughly half.
"Independent adjusters increasingly have a role to play beyond assessing technical damage," Bayley said. "We've seen tangible results from closer dialogue between claims professionals and manufacturers over the past year."
Bayley said the structural nature of the cost pressures limits prospects for a near-term reversal. He added the pressures behind the increases are structural rather than cyclical.
"Increases of this scale every year put massive pressure on the industry," he said. "I'd like to think we're approaching a point where the rate of increase begins to ease, but the pressures driving these costs - skills shortages, OEM pricing power and the complexity of newer aircraft - are structural rather than cyclical. We don't expect them to disappear quickly."
