Aircraft engine maintenance company FTAI Aviation saw its stock price surge 38.3 percent in January, driven by strategic partnerships with artificial intelligence leader Palantir and a multi-year agreement with GE Aerospace’s CFM International division. According to data from S&P Global Market Intelligence, FTAI Aviation stock has climbed 173 percent over the past year. The dramatic rise reflects investor confidence in the company’s expansion into data center infrastructure and its strengthened position in the aircraft engine maintenance market.
The stock surge stems from three interconnected business developments announced between November and late January. FTAI Aviation’s transformation from a traditional aviation services provider to a technology-enabled infrastructure company has captured significant market attention as demand for AI-powered data centers continues to accelerate.
Strategic Partnership with Palantir Enhances Operations
In November, FTAI Aviation announced a multi-year strategic partnership with Palantir to integrate artificial intelligence into its operations. The collaboration enables FTAI to utilize Palantir’s Artificial Intelligence Platform to improve productivity through AI-assisted decision-making. The platform will specifically assist in managing inventory and scheduling maintenance for equipment worldwide, addressing key operational challenges in the complex aviation maintenance sector.
This digital infrastructure provides FTAI with enhanced capabilities to manage supply chains and predict when turbines will require servicing. The partnership represents a significant operational upgrade that positions the company to handle increased complexity as it expands beyond traditional aviation services.
FTAI Power Targets Data Center Market
In late December, FTAI Aviation announced the creation of FTAI Power, marking a strategic pivot toward becoming a provider of critical infrastructure equipment for data centers. The new division will convert CFM56 engines, previously used on legacy Airbus A320 and Boeing 737 aircraft, into power turbines specifically designed for data center operations. This move capitalizes on growing demand for reliable power infrastructure to support AI and cloud computing facilities.
The company is best known for maintaining and leasing CFM56 engines manufactured by CFM International, a joint venture of GE Aerospace. By repurposing these engines for data center applications, FTAI is extending the value chain of existing aviation technology into a rapidly expanding market segment.
GE Aerospace Agreement Secures Supply Chain
In late January, FTAI Aviation signed a multi-year agreement with CFM International that provides crucial components and support for CFM56 engines. According to industry observers, the deal helps ensure FTAI’s core business of servicing and repairing aircraft engines while also de-risking FTAI Power by securing necessary parts for conversion into data center turbines. The agreement addresses potential supply chain concerns that could have constrained the company’s expansion plans.
The deal also benefits GE Aerospace by ensuring continued sales of CFM56 components while allowing the manufacturer to focus resources on developing its services business for the newer CFM Leap engine. The Leap engine powers the Boeing 737 MAX and Airbus A320neo family of aircraft, representing the next generation of narrow-body commercial aviation.
Additionally, industry analysts suggest the CFM agreement validates FTAI Aviation’s business model. While the two companies compete in engine servicing, FTAI also extends the operational life of CFM56 engines, and CFM continues to sell high-margin parts to FTAI, creating a mutually beneficial relationship.
Market Valuation Reflects Growth Expectations
Converting aero-engine technology to power turbines is an established practice, as GE Vernova has long manufactured aeroderivative turbines based on aero-engine technology. However, FTAI Aviation’s timing aligns with strong market appetite for both AI infrastructure and aerospace equipment. The company currently trades at 41 times forward earnings estimates, reflecting investor optimism about growth prospects in both aviation services and data center power solutions.
The stock’s performance will likely depend on FTAI’s execution of its expansion into data center infrastructure and the continued strength of demand for both AI-related power solutions and traditional aircraft engine maintenance services. Investors are expected to monitor quarterly results for evidence that the company can successfully manage operations across both business segments while integrating Palantir’s AI platform into daily operations.
