AAR Inks Multi-Year Aircraft Support Service Deal With Cebu Pacific

AAR Corp. AIR subsidiary Airinmar recently inked a multi-year extension deal to provide support services to Philippines-based low-cost carrier Cebu Pacific.Per the terms of the agreement, AIR’s subsidiary Airimar will continue to provide a comprehensive range of support services, including aircraft warranty management and value engineering. The services are designed to streamline Cebu Pacific’s materials management, maximize warranty recoveries, and cut both component repair expenses and overall maintenance costs.Rising aircraft deliveries are fueling demand for warranty management to control costs and ensure reliable fleet performance, while aging fleets nearing expiry are boosting the need for value engineering to extend service life, improve efficiency and cut operating costs.AAR’s Focus on Aircraft MRO ServicesPer a Mordor Intelligence report, the Asia-Pacific (APAC) aircraft MRO market has been witnessing a strong growth trend, supported by rising air traffic and fleet expansions across China, India and Southeast Asia. The firm projects the market to expand at a CAGR of 6.3% during the 2025-2030 period.Such solid growth opportunities in the APAC aircraft MRO market must have prompted AAR, a renowned provider of MRO solutions to commercial and defense aircraft.For more than 40 years, AAR, through its subsidiary Airinmar, has provided tailored component repair and warranty management services to airlines, MROs, original equipment manufacturers, helicopter operators, and military programs, delivering lower repair costs, greater component availability and improved operational efficiency.In March 2025, AAR secured a multi-year agreement to deliver nacelle MRO services for Cebu Pacific’s A320 fleet equipped with CFM56-5B engines. The work will be carried out at its Chonburi, Thailand, facility.By broadening its long-term partnerships and reinforcing its presence in the APAC region, AAR is well-positioned to seize growth opportunities in the aircraft MRO market.Opportunities for Other Aerospace StocksOther aerospace contractors that are anticipated to benefit from the expanding aircraft MRO market in the APAC region are as follows: GE Aerospace GE: In September 2025, the company announced plans to invest $75 million in its MRO and component repair facilities across the APAC region through the end of 2025.GE has a long-term (three to five years) earnings growth rate of 15.8%. The Zacks Consensus Estimate for 2025 earnings per share is pinned at $5.87, which implies a rise of 27.6%.RTX Corporation RTX: The company’s business unit, Collins Aerospace, is headquartered in Singapore and operates five facilities offering MRO and manufacturing services for airlines, along with project management, engineering and back-office support for avionics solutions.RTX has a long-term earnings growth rate of 9.1%. The Zacks Consensus Estimate for 2025 sales is pinned at $85.69 billion, which suggests a jump of 6.1%.Lockheed Martin LMT: In 2024, the company inked an agreement with Tata Advanced Systems Limited to set up an MRO facility in India to support the Indian Air Force’s fleet of 12 C-130Js, as well as other global Super Hercules fleets.LMT has a long-term earnings growth rate of 10.3%. The Zacks Consensus Estimate for 2025 sales stands at $74.21 billion, which calls for an increase of 4.5%.AAR Stock's Price MovementIn the past three months, AAR shares have risen 13.1% compared with the industry’s growth of 6.6%.Image Source: Zacks Investment ResearchAAR’s Zacks RankAAR Corp. currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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(AIR): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks