We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UAL Strengthens FTAI Partnership With Expanded Engine Exchange Program
Read MoreHide Full Article
Key Takeaways
United Airlines expands its FTAI engine exchange deal, boosting Boeing 737 NG efficiency.
The agreement aims to reduce aircraft downtime, stabilize costs while improving fleet utilization.
FTAI benefits from acquisitions & MRO demand while margins & refurbishment costs balances returns.
United Airlines’ (UAL - Free Report) expanded partnership with FTAI Aviation Ltd. (FTAI - Free Report) marks a significant step toward improving maintenance efficiency for its Boeing 737 NG fleet. By extending the engine exchange program to CFM56-7B engines, UAL aims to reduce aircraft downtime, improve fleet utilization, and maintain more predictable maintenance costs.
The agreement also presents a growth opportunity for FTAI, as it acquires unserviceable engines for its maintenance, repair and overhaul (MRO) network while supplying serviceable replacements to United Airlines. This model can strengthen FTAI’s engine inventory and support greater utilization of its maintenance capabilities.
The multi-year agreement provides scope for the program to expand as more engines become due for removal, potentially creating a sustained source of business for FTAI. The extension of an existing relationship from V2500 engines to CFM56-7B engines also reflects growing customer confidence in FTAI’s engine exchange capabilities.
Overall, the development is positive for both companies, supporting United Airlines’ operational efficiency and FTAI’s growth in the aviation aftermarket. However, the financial benefits for FTAI will depend on contract margins, engine refurbishment costs and the pace of program expansion.
UAL’s Share Price Performance
UAL’s shares have gained 12.9% over the past six months against the Transportation - Airline industry’s 0.4% decline.
Image Source: Zacks Investment Research
UAL’s Zacks Rank
UAL currently has a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Investors interested in the Zacks Transportation sector may consider better-ranked stocks like International Seaways (INSW - Free Report) and Herc Holdings (HRI - Free Report) .
INSW has an expected earnings growth rate of more than 100% for 2026. The company has an encouraging earnings surprise history. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 34%.
Herc Holdings currently sports a Zacks Rank #1.
HRI has a negative expected earnings growth rate of 7.36% for the current year. However, the company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 60.64%.
View the Zacks #1 Rank List
Image: Bigstock
UAL Strengthens FTAI Partnership With Expanded Engine Exchange Program
Key Takeaways
United Airlines’ (UAL - Free Report) expanded partnership with FTAI Aviation Ltd. (FTAI - Free Report) marks a significant step toward improving maintenance efficiency for its Boeing 737 NG fleet. By extending the engine exchange program to CFM56-7B engines, UAL aims to reduce aircraft downtime, improve fleet utilization, and maintain more predictable maintenance costs.
The agreement also presents a growth opportunity for FTAI, as it acquires unserviceable engines for its maintenance, repair and overhaul (MRO) network while supplying serviceable replacements to United Airlines. This model can strengthen FTAI’s engine inventory and support greater utilization of its maintenance capabilities.
The multi-year agreement provides scope for the program to expand as more engines become due for removal, potentially creating a sustained source of business for FTAI. The extension of an existing relationship from V2500 engines to CFM56-7B engines also reflects growing customer confidence in FTAI’s engine exchange capabilities.
Overall, the development is positive for both companies, supporting United Airlines’ operational efficiency and FTAI’s growth in the aviation aftermarket. However, the financial benefits for FTAI will depend on contract margins, engine refurbishment costs and the pace of program expansion.
UAL’s Share Price Performance
UAL’s shares have gained 12.9% over the past six months against the Transportation - Airline industry’s 0.4% decline.
Image Source: Zacks Investment Research
UAL’s Zacks Rank
UAL currently has a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Investors interested in the Zacks Transportation sector may consider better-ranked stocks like International Seaways (INSW - Free Report) and Herc Holdings (HRI - Free Report) .
INSW currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
INSW has an expected earnings growth rate of more than 100% for 2026. The company has an encouraging earnings surprise history. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 34%.
Herc Holdings currently sports a Zacks Rank #1.
HRI has a negative expected earnings growth rate of 7.36% for the current year. However, the company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 60.64%.