Economic and Environmental Analysis of Aluminium Recycling from Retired Commercial Aircraft

Aviation’s sustainability discourse often centres on flight emissions, but production and end-of-life phases also carry material, energy, and pollution impacts that are large enough to merit systematic intervention. With ~13,000 aircraft projected to retire over the next two decades—roughly 44% of the global fleet—the sector must scale responsible dismantling and material recovery to avoid lost opportunities for meeting future sustainability goals and to harness economic value from secondary parts and recycled feedstocks. Embedding major sustainability and circular economy principles into aircraft design, operations, and retirement can reduce waste, conserve critical materials, and lower lifecycle emissions while contributing directly to multiple SDGs. Furthermore, when considering particular aircraft types, thousands of narrow-body aircraft such as the Airbus A320 and Boeing 737 are due to reach their end of life over the next two decades. This research evaluates the economic and environmental feasibility of aluminium recycling from these aircraft, integrating material flow analysis, cost–benefit modelling, and a lifecycle emissions assessment. An economic assessment framework is developed and applied, with the results showing that approximately 24.7 tonnes of aluminium can be recovered per aircraft, leading to emissions savings of over 338,000 kg of CO2e, a 95% reduction compared to primary aluminium production. However, scrap value alone cannot offset dismantling costs; the break-even scrap price is over USD 4200 per tonne. When additional revenue streams such as component resale and carbon credit incentives are incorporated, the model predicts a net profit of over USD 59,000 per aircraft. The scenario analysis confirms that aluminium recycling only becomes financially viable through multi-stream revenue models, supported by Extended Producer Responsibility (EPR) and carbon pricing. While barriers remain, aluminium recovery is a strategic opportunity to align aviation with circular economy and decarbonisation goals.