You're paying more to fly, but the airlines aren't the ones pocketing the extra cash. The real winners are a handful of companies you've probably never heard of — the ones that keep old planes in the air.
The problem starts at the factory. Boeing Co. (BA) and Airbus SE (OTCPK: EADSY) are sitting on a record backlog of over 16,000 aircraft — enough to keep them busy for 12 years. Supply-chain snarls, engine shortages, quality issues, and certification delays mean they can't deliver planes fast enough to meet airline demand. So airlines are holding onto their old jets longer.
The average commercial aircraft is now about 15 years old, and some are much older. United Airlines Holdings, Inc. (UAL) still flies Boeing 767-300ERs delivered in 1991 on routes like Newark-London and Washington-Geneva. Airlines can refresh the seats and entertainment systems, but they can't hide the maintenance math. And the companies selling the parts, repairs, and logistics to keep those old birds flying are the ones collecting the profits.
The Cost of Keeping an Old Plane in the Air
Aging aircraft are safe when properly maintained, but the bill adds up fast. A 10-year-old jet might need $2 million a year in maintenance. A 20-year-old version? More than $5 million. Heavy checks at 6- to 10-year intervals can cost $3 million to $6 million in labor and parts — and that sum can double when you factor in the lost revenue while the plane sits idle for a month or two.
The shortage of engines and components has sharpened the economics. EirTrade Aviation recently purchased two relatively new Airbus A320 aircraft from bankrupt Spirit Airlines for disassembly. In today's market, aircraft can be worth more as parts inventories than as flying machines.
That's why the MRO (maintenance, repair, and overhaul) sector is where the smart money is looking.
TransDigm: The Proprietary Parts King
Transdigm Group Inc. (TDG) specializes in proprietary aerospace components — often the only game in town for small but mission-critical parts. As fleets age, airlines need to replace those parts again and again. That aftermarket demand is tied to hours flown, failures, and inspections, not new-plane production cycles. It's a durable, high-margin revenue stream.
The stock is roughly flat year to date, but analysts see about 16% upside from current levels. TransDigm shares were trading up 0.03% at $1,329.98 in premarket trading Wednesday.
Heico: The Alternative Supply Chain
Heico Corp (HEI) benefits from a different pressure point. Airlines need certified replacement parts without waiting for original manufacturers. Heico's Parts Manufacturer Approval business supplies alternative components that help carriers extend fleet life and manage costs. As backlogs stretch and traditional supply chains strain, Heico's value proposition becomes more compelling: keep aircraft airworthy, reduce dependence on scarce OEM parts, and avoid groundings.
The stock is up 10.64% year-to-date, with analysts pricing a 12% upside. Heico shares were trading down 0.42% at $356.50 in premarket trading Wednesday.
AAR Corp.: The Pure Play MRO
AAR Corp. (AIR) sits closest to the physical work. The firm provides maintenance, repair, and overhaul services, supply chain management, and used serviceable material. These services are essential as heavy checks multiply and airlines hunt for engines, landing gear, avionics, and other parts from retired aircraft.
The stock is up over 65% year-to-date, and analysts rate it fairly valued. Still, at a $5.43 billion market cap, it's by far the smallest in the group — suggesting room to grow as the aging fleet trend continues. AAR shares were trading at $138.40 in premarket trading Wednesday.
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