AAR Corp announced that its Trax aviation maintenance platform has secured a multi‑year expansion with Air Atlanta Icelandic, adding the eMobility suite and cloud‑hosted services to the airline’s existing Trax eMRO deployment. The deal builds on a 25‑year partnership that began in the early 2000s and now positions Air Atlanta Icelandic to manage defects digitally, coordinate aircraft turnaround more efficiently, and transition to electronic task cards and logbooks.
The expansion is a key win for AAR’s high‑margin Trax business, which has become the company’s most profitable segment. Trax’s software is designed to replace legacy maintenance systems, and the addition of cloud hosting provides scalability, enhanced security, and reduced on‑premise infrastructure costs for the airline. By extending the contract, AAR reinforces its strategy of deepening customer relationships through integrated, cloud‑based solutions.
Financially, the contract is expected to generate significant recurring revenue for AAR. While the exact dollar amount was not disclosed, analysts estimate that the expansion could add several million dollars in annual recurring revenue, contributing to the company’s goal of potentially doubling Trax sales from $50 million to roughly $100 million in the coming years.
The announcement has already attracted positive analyst attention. KeyBanc raised its price target for AAR to $109 from $93 on the day of the announcement, citing the company’s strong execution and growth drivers. Jefferies reiterated a Buy rating with a $112 price target the following day, highlighting the growth potential of Trax and its high‑margin profile.
AAR’s broader financial performance supports the significance of the win. In the most recent quarter, the company reported record sales and a 39 % rise in adjusted EBITDA, driven by acquisitions and organic growth across its segments. The Trax expansion aligns with this momentum, underscoring AAR’s focus on high‑margin software solutions as a key growth engine.
Overall, the contract expansion strengthens AAR’s market position, expands its footprint in the commercial aftermarket, and exemplifies the broader industry shift toward digital maintenance solutions. The deal not only boosts revenue but also enhances the airline’s operational efficiency, reinforcing AAR’s strategic narrative of delivering high‑margin, cloud‑based aviation software.
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