Here's Why FTAI Aviation Stock Was Red Hot in the First Half of 2026
Key Points
FTAI Power is an exciting business poised to benefit from growing investment in data centers.
FTAI's core business also has excellent long-term growth prospects from servicing engines used on Boeing and Airbus airplanes.
Investors need to keep an eye out for any potential slowdown in flight departures.
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Shares in FTAI Aviation (NASDAQ: FTAI) rose by 37.4% in the first half of 2026, according to the data from S&P Global Market Intelligence. It's an excellent performance, but it was anything but linear. Instead, FTAI has had a volatile year, with many of the year's topical issues: AI-linked investment, the conflict in Iran, and energy prices. Given that these factors remain highly dynamic, volatility is likely to continue.
FTAI Aviation has three businesses
The company operates three businesses that are highly related but distinct. The core business is providing engine maintenance for airlines and airplane owners. The second is aviation leasing, where it takes assets (airplanes) on its books, raises third-party capital, and then owns and leases the airplanes to airlines, while ensuring the engines are maintained. The third, nascent, business is FTAI Power, which was launched at the end of 2025, and converts CFM56 engines (which power the legacy Airbus A320 family of planes as well as the legacy Boeing 737) into power turbines to provide energy to data centers globally.
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All three were impacted by events in 2026.
Good news and bad news
While it's obvious to think of the company as being in direct competition with engine manufacturers like GE Aerospace and its joint venture, CFM International, in reality, it signed a multi-year agreement on CFM56 engines with CFM International in January.
The deal is mutually beneficial, as FTAI secures replacement parts to maintain and service the CFM56 engine, and GE Aerospace and its partner Safran secure a reliable market for their CFM56 parts. In addition, it frees up GE Aerospace to focus on growing its aftermarket business on the newer LEAP engine.
The CFM deal was good news, but the launch of a war with Iran led to soaring jet fuel prices, and GE Aerospace and others have reduced their estimates for flight departures this year. That's not good news for companies that service engines or lease airplanes.
Turning to FTAI Power, there's no doubt that the environment has strengthened for companies with data center infrastructure exposure, such as GE Vernova. Still, FTAI isn't set to start generating revenue until 2027, so investors won't see the immediate impact for a while yet.
Image source: Getty Images.
Where next for FTAI Aviation?
Investors have reason to be positive. Lower flight departures in 2026 are an issue, but as GE Aerospace and Delta Air Lines argue, the travel industry tends to bounce back stronger after (hopefully) temporary periods of high oil prices. In addition, FTAI Power will start generating revenue in 2027, and investors will be more willing to price in the business's long-term growth. That said, jet fuel prices and their impact on flight departures are a watch item.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, Ftai Aviation, GE Aerospace, GE Vernova, and Safran. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
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