By : Khawar Nehal
khawar@atrc.net.pk
Applied Technology Research Center
Remote Support
MuftaSoft
Date : 3 June 2026
The basic reason is that airlines compete with subsidized government companies funded by taxes and have no issues related to having to pay back capital.
This causes all private airlines to be squeezed by players in the market that cannot be squeezed by design.
I do not think there are many MROs which are government funded. That results in more reliability in the business for private players.
“I’ve never invested in any airline. I’m an airline manager. I don’t invest in airlines. And I always said to the employees of American, ‘This is not an appropriate investment. It’s a great place to work and it’s a great company to be associated with, but it’s not a good investment.’”
The airline CEO who famously made this statement is Robert Crandall, the former Chairman and CEO of American Airlines (who led the company from 1985 to 1998 and is widely considered one of the most influential executives in aviation history).
Maybe he noticed this and did or did not know why airlines were not a great investment.
If you know of other factors, then feel free to share. I shall include them in an update or a new article.
Revenue & Profit Comparison: Top 10 MROs vs Top 10 Airlines (2014-2024)
TOP 10 MROs
|
Company |
2024 Revenue |
2024 Profit |
2014 Revenue |
2014 Profit |
10-Year Growth |
|---|---|---|---|---|---|
| Lufthansa Technik |
€7.44B ($8.0B) |
€791M ($850M) |
€4.2B ($5.6B) |
~€300M |
+77% |
| GE Aerospace (MRO ~70%) |
$38.7B |
$6.2B |
$33.5B |
$4.1B |
+15% |
| ST Engineering Aerospace |
$2.15B |
$210M |
$1.87B |
$180M |
+15% |
| AAR Corp |
$2.78B |
$177M |
$1.71B |
$95M |
+63% |
| HAECO |
$2.0B |
$59M |
$1.5B |
$74M |
+33% |
| Pratt & Whitney |
$28.3B |
$2.0B |
$18.5B |
$1.2B |
+53% |
| Rolls-Royce Civil Aerospace |
£7.35B ($9.3B) |
£1.2B ($1.5B) |
£6.7B ($11.2B) |
£1.1B |
+10% |
| Honeywell Aerospace |
$15.5B |
$2.8B |
$10.8B |
$1.9B |
+44% |
| Delta TechOps |
~$1.0B |
~$100M |
~$600M |
~$60M |
+67% |
| Safran Aircraft Engines |
€9.5B ($10.2B) |
€1.8B ($1.9B) |
€6.2B ($8.2B) |
€900M |
+53% |
TOP 10 AIRLINES
|
Company |
2024 Revenue |
2024 Profit |
2014 Revenue |
2014 Profit |
10-Year Growth |
|---|---|---|---|---|---|
| Delta Air Lines |
$61.6B |
$3.46B |
$40.4B |
$660M |
+52% |
| American Airlines |
$54.2B |
$235M |
$42.7B |
$2.9B |
+27% |
| United Airlines |
$57.1B |
$3.15B |
$38.9B |
$1.1B |
+47% |
| Lufthansa Group |
€37.6B ($40.5B) |
€1.6B ($1.7B) |
€30.0B ($40.0B) |
€55M |
+25% |
| Emirates |
$34.9B |
$5.8B |
$24.2B |
$1.2B |
+44% |
| IAG |
$34.6B |
$4.3B |
$24.5B |
$1.4B |
+41% |
| Air France-KLM |
€31.5B ($33.9B) |
€416M ($450M) |
€24.9B ($33.1B) |
-€198M |
+27% |
| Southwest Airlines |
$27.5B |
$465M |
$18.6B |
$938M |
+48% |
| Ryanair |
€13.4B ($14.5B) |
€1.9B ($2.1B) |
€5.7B ($7.6B) |
€867M |
+136% |
| China Southern |
$26.1B |
$1.2B |
$16.8B |
$850M |
+55% |
KEY INSIGHTS:
MRO Advantages:
- Higher Profit Margins: MROs average 6-8% net margins vs airlines’ 2-4%
- More Stable Revenue: Less volatile during economic downturns 39
- Recurring Revenue: Mandatory maintenance creates predictable demand
- Less Capital Intensive: No aircraft ownership costs
- Counter-Cyclical Benefits: Aging fleets increase MRO demand
Airline Challenges:
- Thin Margins: Industry averaged only 2.7% net profit margin in 2024 31
- High Volatility: 2020 pandemic caused 61% revenue drop 39
- Fuel Price Exposure: Major cost variable
- Intense Competition: Price wars common
- High Fixed Costs: Aircraft leases, labor, fuel
Notable Trends:
- MROs showed more consistent profitability over 10 years
- Airlines experienced massive 2020-2021 losses during pandemic
- MRO revenue growth steadier (15-60%) vs airlines (25-136% but with high volatility)
- Ryanair showed exceptional airline performance with 136% growth 192
- Lufthansa Technik achieved record €511M adjusted EBIT in 2022 45
Note: All figures converted to USD where applicable using approximate exchange rates. Some MRO figures represent total company revenue, not just MRO segments.
