News / IBA warns of oversupply of narrowbody conversions and lease rate fall

The current rate of B737-800 conversions needs close monitoring, with a potential oversupply that could impact lease rates for other narrowbodies, according to aviation advisory firm IBA.

Cargo conversion activity is settling down following the surge in demand for cargo capacity during the pandemic and is expected to normalise this year, an IBA cargo webinar revealed this week.

B737-800s continue to see unprecedented demand, with 27 already converted this year and 79 in 2023. However, IBA analyst Jonathan McDonald has noted a ...