Could FTAI Aviation's (FTAI) Engine Exchange Deal with Finnair Reveal Its Edge in Fleet Support?

• Finnair Plc recently announced a multi-year Perpetual Power Agreement with FTAI Aviation Ltd., under which FTAI will provide engine exchanges to optimize maintenance flexibility, cost predictability, and fleet reliability.
• This partnership leverages FTAI’s Perpetual Power Program, designed to offer airlines tailored solutions that reduce costly shop visits and ensure guaranteed engine availability through in-house maintenance capabilities.
• We'll explore how the Finnair partnership spotlights FTAI's innovative fleet solutions and what it means for the company's investment narrative.

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FTAI Aviation Investment Narrative Recap

Shareholders in FTAI Aviation need to believe in the sustained demand for mid-life engine maintenance and the value of the company’s asset-light, vertically integrated model. The recent Finnair agreement underlines FTAI’s position in flexible, recurring-revenue engine services, but does not materially alter the most significant near-term catalyst, continued adoption of FTAI’s Maintenance, Repair, and Exchange programs amidst industry-wide shop visit delays. Concentration risk in legacy engine platforms remains the most immediate business challenge, as any rapid shift in airline technology or fleet modernization could pressure recurring revenues.

The most relevant recent announcement is FTAI’s inclusion in both the Russell 1000 Growth and Russell Midcap Growth benchmarks as of June 2025. This signals increasing institutional recognition and potential index-driven inflows, which could interact positively with customer wins like Finnair, reinforcing the narrative around market share gains and scale as catalysts for future earnings momentum.

Yet, in contrast to the headlines, investors also need to consider the risk of rapid technology shifts undermining demand for FTAI’s core engine platforms...

Read the full narrative on FTAI Aviation (it's free!)

FTAI Aviation's outlook anticipates $3.7 billion in revenue and $1.1 billion in earnings by 2028. This assumes annual revenue growth of 19.8% and a $683.5 million increase in earnings from the current $416.5 million level.

Uncover how FTAI Aviation's forecasts yield a $214.20 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community range from US$16.83 to US$214.20, reflecting wide differences in outlook. With such varied perspectives, and persistent concentration risk in aging engine platforms, readers can compare alternative frameworks to assess future business durability.

Explore 4 other fair value estimates on FTAI Aviation - why the stock might be worth less than half the current price!

Build Your Own FTAI Aviation Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your FTAI Aviation research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free FTAI Aviation research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate FTAI Aviation's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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