{"id":3058,"date":"2026-06-03T04:46:36","date_gmt":"2026-06-03T04:46:36","guid":{"rendered":"https:\/\/remote-support.space\/wordpress\/?p=3058"},"modified":"2026-06-03T04:47:22","modified_gmt":"2026-06-03T04:47:22","slug":"why-investing-in-an-mro-is-better-financially-than-an-airline","status":"publish","type":"post","link":"https:\/\/remote-support.space\/wordpress\/2026\/06\/03\/why-investing-in-an-mro-is-better-financially-than-an-airline\/","title":{"rendered":"Why investing in an MRO is better financially than an airline."},"content":{"rendered":"

By : Khawar Nehal<\/p>\n

khawar@atrc.net.pk<\/p>\n

Applied Technology Research Center<\/p>\n

Remote Support
\nMuftaSoft<\/p>\n

Date : 3 June 2026<\/p>\n

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.<\/p>\n

This causes all private airlines to be squeezed by players in the market that cannot be squeezed by design.<\/p>\n

I do not think there are many MROs which are government funded. That results in more reliability in the business for private players.<\/p>\n

“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.'”<\/span><\/em><\/p>\n

The airline CEO who famously made this statement is <\/span>Robert Crandall<\/span><\/strong>, the former Chairman and CEO of <\/span>American Airlines<\/span><\/strong> (who led the company from 1985 to 1998 and is widely considered one of the most influential executives in aviation history). <\/span><\/p>\n

Maybe he noticed this and did or did not know why airlines were not a great investment.<\/p>\n

If you know of other factors, then feel free to share. I shall include them in an update or a new article.<\/p>\n

Revenue & Profit Comparison: Top 10 MROs vs Top 10 Airlines (2014-2024)<\/b><\/h2>\n

TOP 10 MROs<\/b><\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Company<\/p>\n<\/th>\n

\n

2024 Revenue<\/p>\n<\/th>\n

\n

2024 Profit<\/p>\n<\/th>\n

\n

2014 Revenue<\/p>\n<\/th>\n

\n

2014 Profit<\/p>\n<\/th>\n

\n

10-Year Growth<\/p>\n<\/th>\n<\/tr>\n<\/thead>\n

Lufthansa Technik<\/b><\/td>\n\n

\u20ac7.44B ($8.0B)<\/p>\n<\/td>\n

\n

\u20ac791M ($850M)<\/p>\n<\/td>\n

\n

\u20ac4.2B ($5.6B)<\/p>\n<\/td>\n

\n

~\u20ac300M<\/p>\n<\/td>\n

\n

+77%<\/p>\n<\/td>\n<\/tr>\n

GE Aerospace<\/b> (MRO ~70%)<\/td>\n\n

$38.7B<\/p>\n<\/td>\n

\n

$6.2B<\/p>\n<\/td>\n

\n

$33.5B<\/p>\n<\/td>\n

\n

$4.1B<\/p>\n<\/td>\n

\n

+15%<\/p>\n<\/td>\n<\/tr>\n

ST Engineering Aerospace<\/b><\/td>\n\n

$2.15B<\/p>\n<\/td>\n

\n

$210M<\/p>\n<\/td>\n

\n

$1.87B<\/p>\n<\/td>\n

\n

$180M<\/p>\n<\/td>\n

\n

+15%<\/p>\n<\/td>\n<\/tr>\n

AAR Corp<\/b><\/td>\n\n

$2.78B<\/p>\n<\/td>\n

\n

$177M<\/p>\n<\/td>\n

\n

$1.71B<\/p>\n<\/td>\n

\n

$95M<\/p>\n<\/td>\n

\n

+63%<\/p>\n<\/td>\n<\/tr>\n

HAECO<\/b><\/td>\n\n

$2.0B<\/p>\n<\/td>\n

\n

$59M<\/p>\n<\/td>\n

\n

$1.5B<\/p>\n<\/td>\n

\n

$74M<\/p>\n<\/td>\n

\n

+33%<\/p>\n<\/td>\n<\/tr>\n

Pratt & Whitney<\/b><\/td>\n\n

$28.3B<\/p>\n<\/td>\n

\n

$2.0B<\/p>\n<\/td>\n

\n

$18.5B<\/p>\n<\/td>\n

\n

$1.2B<\/p>\n<\/td>\n

\n

+53%<\/p>\n<\/td>\n<\/tr>\n

Rolls-Royce Civil Aerospace<\/b><\/td>\n\n

\u00a37.35B ($9.3B)<\/p>\n<\/td>\n

\n

\u00a31.2B ($1.5B)<\/p>\n<\/td>\n

\n

\u00a36.7B ($11.2B)<\/p>\n<\/td>\n

\n

\u00a31.1B<\/p>\n<\/td>\n

\n

+10%<\/p>\n<\/td>\n<\/tr>\n

Honeywell Aerospace<\/b><\/td>\n\n

$15.5B<\/p>\n<\/td>\n

\n

$2.8B<\/p>\n<\/td>\n

\n

$10.8B<\/p>\n<\/td>\n

\n

$1.9B<\/p>\n<\/td>\n

\n

+44%<\/p>\n<\/td>\n<\/tr>\n

Delta TechOps<\/b><\/td>\n\n

~$1.0B<\/p>\n<\/td>\n

\n

~$100M<\/p>\n<\/td>\n

\n

~$600M<\/p>\n<\/td>\n

\n

~$60M<\/p>\n<\/td>\n

\n

+67%<\/p>\n<\/td>\n<\/tr>\n

Safran Aircraft Engines<\/b><\/td>\n\n

\u20ac9.5B ($10.2B)<\/p>\n<\/td>\n

\n

\u20ac1.8B ($1.9B)<\/p>\n<\/td>\n

\n

\u20ac6.2B ($8.2B)<\/p>\n<\/td>\n

\n

\u20ac900M<\/p>\n<\/td>\n

\n

+53%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

TOP 10 AIRLINES<\/b><\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Company<\/p>\n<\/th>\n

\n

2024 Revenue<\/p>\n<\/th>\n

\n

2024 Profit<\/p>\n<\/th>\n

\n

2014 Revenue<\/p>\n<\/th>\n

\n

2014 Profit<\/p>\n<\/th>\n

\n

10-Year Growth<\/p>\n<\/th>\n<\/tr>\n<\/thead>\n

Delta Air Lines<\/b><\/td>\n\n

$61.6B<\/p>\n<\/td>\n

\n

$3.46B<\/p>\n<\/td>\n

\n

$40.4B<\/p>\n<\/td>\n

\n

$660M<\/p>\n<\/td>\n

\n

+52%<\/p>\n<\/td>\n<\/tr>\n

American Airlines<\/b><\/td>\n\n

$54.2B<\/p>\n<\/td>\n

\n

$235M<\/p>\n<\/td>\n

\n

$42.7B<\/p>\n<\/td>\n

\n

$2.9B<\/p>\n<\/td>\n

\n

+27%<\/p>\n<\/td>\n<\/tr>\n

United Airlines<\/b><\/td>\n\n

$57.1B<\/p>\n<\/td>\n

\n

$3.15B<\/p>\n<\/td>\n

\n

$38.9B<\/p>\n<\/td>\n

\n

$1.1B<\/p>\n<\/td>\n

\n

+47%<\/p>\n<\/td>\n<\/tr>\n

Lufthansa Group<\/b><\/td>\n\n

\u20ac37.6B ($40.5B)<\/p>\n<\/td>\n

\n

\u20ac1.6B ($1.7B)<\/p>\n<\/td>\n

\n

\u20ac30.0B ($40.0B)<\/p>\n<\/td>\n

\n

\u20ac55M<\/p>\n<\/td>\n

\n

+25%<\/p>\n<\/td>\n<\/tr>\n

Emirates<\/b><\/td>\n\n

$34.9B<\/p>\n<\/td>\n

\n

$5.8B<\/p>\n<\/td>\n

\n

$24.2B<\/p>\n<\/td>\n

\n

$1.2B<\/p>\n<\/td>\n

\n

+44%<\/p>\n<\/td>\n<\/tr>\n

IAG<\/b><\/td>\n\n

$34.6B<\/p>\n<\/td>\n

\n

$4.3B<\/p>\n<\/td>\n

\n

$24.5B<\/p>\n<\/td>\n

\n

$1.4B<\/p>\n<\/td>\n

\n

+41%<\/p>\n<\/td>\n<\/tr>\n

Air France-KLM<\/b><\/td>\n\n

\u20ac31.5B ($33.9B)<\/p>\n<\/td>\n

\n

\u20ac416M ($450M)<\/p>\n<\/td>\n

\n

\u20ac24.9B ($33.1B)<\/p>\n<\/td>\n

\n

-\u20ac198M<\/p>\n<\/td>\n

\n

+27%<\/p>\n<\/td>\n<\/tr>\n

Southwest Airlines<\/b><\/td>\n\n

$27.5B<\/p>\n<\/td>\n

\n

$465M<\/p>\n<\/td>\n

\n

$18.6B<\/p>\n<\/td>\n

\n

$938M<\/p>\n<\/td>\n

\n

+48%<\/p>\n<\/td>\n<\/tr>\n

Ryanair<\/b><\/td>\n\n

\u20ac13.4B ($14.5B)<\/p>\n<\/td>\n

\n

\u20ac1.9B ($2.1B)<\/p>\n<\/td>\n

\n

\u20ac5.7B ($7.6B)<\/p>\n<\/td>\n

\n

\u20ac867M<\/p>\n<\/td>\n

\n

+136%<\/p>\n<\/td>\n<\/tr>\n

China Southern<\/b><\/td>\n\n

$26.1B<\/p>\n<\/td>\n

\n

$1.2B<\/p>\n<\/td>\n

\n

$16.8B<\/p>\n<\/td>\n

\n

$850M<\/p>\n<\/td>\n

\n

+55%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

KEY INSIGHTS:<\/b><\/h3>\n

MRO Advantages:<\/b><\/p>\n

    \n
  1. Higher Profit Margins<\/b>: MROs average 6-8% net margins vs airlines’ 2-4%<\/li>\n
  2. More Stable Revenue<\/b>: Less volatile during economic downturns 39<\/a><\/li>\n
  3. Recurring Revenue<\/b>: Mandatory maintenance creates predictable demand<\/li>\n
  4. Less Capital Intensive<\/b>: No aircraft ownership costs<\/li>\n
  5. Counter-Cyclical Benefits<\/b>: Aging fleets increase MRO demand<\/li>\n<\/ol>\n

    Airline Challenges:<\/b><\/p>\n

      \n
    1. Thin Margins<\/b>: Industry averaged only 2.7% net profit margin in 2024 31<\/a><\/li>\n
    2. High Volatility<\/b>: 2020 pandemic caused 61% revenue drop 39<\/a><\/li>\n
    3. Fuel Price Exposure<\/b>: Major cost variable<\/li>\n
    4. Intense Competition<\/b>: Price wars common<\/li>\n
    5. High Fixed Costs<\/b>: Aircraft leases, labor, fuel<\/li>\n<\/ol>\n

      Notable Trends:<\/b><\/p>\n