Regional jets may not be the showpieces of global aviation, but right now they’re among the hottest assets in the market.
Regional jets rarely command the spotlight. They’re usually overshadowed by the bigger, flashier narrowbodies that dominate long, high-yield routes. But regional jets have been climbing sharply in value over the past year, a dynamic that’s poised to continue in 2026.
The reasons behind this trend say a great deal about how airlines are rebuilding their networks and what lessors can expect from the secondary market in the years ahead.
Regional jet market revenue was valued at $4.5 billion in 2024 and is estimated to reach $7.2 billion by 2033, growing at a compound annual growth rate of 6.5% from 2026 to 2033. This data was compiled by the research firm, Verified Market Reports.
The first and most powerful force behind the surge is the tightening supply of viable regional aircraft. The regional-jet sector has been shrinking for years as older types retire and manufacturers retreat from the market. Bombardier has exited the space entirely.
Embraer’s focus is now on the E2 series, which is a strong performer but produced in limited quantities and not yet a full global replacement for the original E-Jets. Mitsubishi closed down the SpaceJet program, eliminating what could have been the only fresh competitor in the 70- to 90-seat segment.
The result is simple supply-side pressure: fewer aircraft, fewer alternatives, and more operators chasing the same pool of airframes. In such a constrained market, values rise quickly.
That pressure is even more pronounced for aircraft that fit within the U.S. scope-clause limits that cap outsourced flying at 76 seats. These rules have been a defining feature of American regional aviation for two decades.
As long as they remain in place, airlines must rely on aircraft like the Embraer 175, which sits precisely in the sweet spot of capacity, economics, and contractual compliance. With production slots for new E175s limited and demand unwavering among U.S. regionals, used examples have become highly sought after, pushing values higher and lifting lease rates with them.
Another unexpected factor boosting regional-jet values is the pilot shortage. At first glance, it seems like pilot scarcity would hurt the regional sector, and in some ways it has. Airlines have trimmed frequencies on thin routes and shifted some flying to larger aircraft where possible. But the shortage has also forced operators to hold onto their existing regional fleets longer than planned.
Upgauging works for large carriers with broad networks, but many regional affiliates and smaller airlines simply can’t replace a 70-seat jet with a 150-seat narrowbody. Runway limitations, market size, and yield patterns don’t allow it. For them, the most pilot-efficient strategy is to keep the right-sized aircraft they already have. That stickiness in demand has given certain regional types an unexpected resilience — and a measurable uptick in market value.
The network recovery after the pandemic also played a major role. Instead of immediately flocking back to major business corridors, passengers gravitated toward leisure routes, secondary cities, and point-to-point markets. Regional traffic recovered faster than anticipated.
Many airlines discovered that their post-pandemic networks leaned heavily on flexibility and smaller-gauge aircraft. Regional jets offered exactly that. Their ability to serve thin routes profitably helped airlines restore connectivity and rebuild schedule depth in ways that larger aircraft couldn’t match. This renewed strategic importance translated directly into stronger demand and firmer pricing for the aircraft themselves.
The E-Jet Family: The Clear Winner
Within this broader resurgence, the Embraer E-Jet family has emerged as the clear winner. The E170, E175, E190, and E195 have all seen value improvements, but the E190 stands out: it’s large enough to offer strong productivity, small enough to make thin routes viable, and modern enough to avoid the fuel-burn penalties of older designs.
Operators have found that buying or leasing a used E190 today often delivers better economics than waiting years for a new narrowbody with uncertain delivery timing. As supply of these mid-sized jets tightens, market values have risen accordingly.
Even CRJs, particularly the CRJ700 and CRJ900, have enjoyed value stabilization and modest appreciation as airlines seek any dependable lift they can find. While these models lack the cabin appeal and operating efficiency of the newer Embraers, they remain reliable workhorses with strong support networks. In a market where replacement alternatives are scarce, longevity becomes a value driver in itself.
For lessors, the current environment presents an unusual opportunity. Regional jets were long considered the least glamorous corner of the portfolio, a space with soft yields and high turnover risk.
Today the dynamics are different. Elevated lease rates, reduced downtime between placements, and structural demand have turned this once-lukewarm segment into one of the most reliable sources of near-term return. Lessors holding young, well-maintained E-Jets are particularly well positioned.
The big question, of course, is how long the value spike can last. These are aging fleets, with many models nearing or surpassing midlife. Without a new generation of regional aircraft entering production, the market could eventually tighten to the point where operators are forced to rethink network strategies altogether. But for now, the fundamentals remain supportive. Demand is strong. Supply is constrained. And the economic logic behind keeping regional jets in service has rarely been clearer.
Regional jets may not be the showpieces of global aviation, but right now they’re among the hottest assets in the market. Their sudden rise in value is no accident; it’s the product of strategic necessity, supply scarcity, and a shifting aviation landscape that still relies heavily on small-gauge aircraft. And as long as those conditions persist, regional jets will continue to punch well above their weight in the valuation tables.
Editor’s Note: This article is an abridged transcript; the video contains the full report.
