The 219% AI Aviation Stock Disrupting Engine Maintenance With Palantir

The aviation services industry is witnessing a quiet but powerful transformation, and FTAI Aviation has emerged as an unlikely winner. The stock has surged an impressive 219% over the past year, a trajectory driven by strategic partnerships with artificial intelligence leaders and aerospace giants reshaping how aircraft engines are maintained and deployed.

From Legacy Engines to AI-Powered Efficiency

FTAI Aviation’s business model centers on an unglamorous but essential function: acquiring and maintaining aircraft engines after their original service agreements expire. The company primarily focuses on the CFM56 engine—a workhorse powering legacy Boeing 737 and Airbus A320 aircraft—and the Rolls-Royce V2500. Rather than competing head-to-head with original equipment manufacturers, FTAI offers a cost-effective pathway for airlines, cargo operators, and leasing companies to extend engine life and optimize operational costs.

This positions the company at a critical inflection point. Airlines face intense pressure to reduce expenses while aging aircraft platforms continue generating revenue. FTAI’s maintenance model addresses this tension perfectly, providing a lower-cost alternative to buying new engines or relying on expensive OEM service contracts.

Strategic Partnerships Reshape Industry Dynamics

The company’s recent deals with Palantir and GE Aerospace have fundamentally altered its market positioning. In November, FTAI formalized a multiyear strategic partnership with Palantir to deploy artificial intelligence technology across its operations. The goal: accelerate production turnaround times and improve unit economics, ultimately delivering cost savings to customers worldwide.

Simultaneously, FTAI solidified its relationship with CFM International—a joint venture between GE Aerospace and Safran—through a comprehensive supply and services agreement. This partnership secures ongoing access to OEM replacement parts, thrust performance upgrades, and component repair capabilities. Perhaps most significantly, GE Aerospace recently pushed back its timeline for CFM56 decline, now expecting major maintenance shop visits to plateau until 2027 rather than declining in 2025. This extension of the CFM56’s operational window directly benefits FTAI’s traditional business.

FTAI Power: Capturing the Data Center Boom

The company’s ambitions extend beyond aircraft maintenance. FTAI Power represents a bold venture into energy infrastructure, converting retired CFM56 engines into power generation turbines serving data centers. Management projects the business unit will produce over 100 units annually by applying its proven modular maintenance framework to power systems.

Here’s where Palantir’s AI platform becomes invaluable: digital modeling and predictive maintenance systems can identify precisely when components require servicing and which parts need stocking. The synergy is undeniable—FTAI leverages AI-driven productivity improvements while capitalizing on the explosive demand for data center power driven by artificial intelligence applications and computing infrastructure buildout.

Weighing Valuation Against Growth Runway

Trading at roughly 43 times forward earnings, FTAI Aviation commands a premium valuation. This isn’t cheap by traditional metrics. However, the company boasts a multi-year growth runway spanning both core aircraft engine services and the emerging FTAI Power division. The strategic alignment with Palantir and GE Aerospace—both industry leaders in their respective domains—substantially reduces execution risk and may fuel future earnings estimate upgrades as these partnerships generate tangible results.

The 219% gain already reflects market confidence in this trajectory, but opportunities may present themselves during broader market volatility. Patient investors monitoring the stock for potential pullbacks could position themselves ahead of further developments in AI-enabled maintenance and data center infrastructure.

Investors considering FTAI should weigh the premium valuation against the compelling growth drivers taking shape. The convergence of aviation services innovation and AI-powered efficiency represents a genuine market shift—one that’s already worth tracking closely.