FTAI Acquires 27 Boeing 737-700s to Expand Aviation Businesses

FTAI Aviation Ltd. (NASDAQ:FTAI) shares are trading lower by more than 3% on Monday. The company acquired 27 Boeing Co (NYSE:BA) 737-700 aircraft from WestJet, marking one of its largest aircraft deals to date. • FTAI Aviation stock is taking a hit today. Why is FTAI stock falling? Acquires 27 Boeing 737-700s from WestJet Through the transaction, FTAI’s 2026 SPV, the second investment vehicle under its Strategic Capital business, purchased 17 Boeing 737-700 aircraft leased to WestJet through a sale-leaseback arrangement. FTAI separately acquired 10 off-lease Boeing 737-700 aircraft for its Aerospace Products business. The 2026 SPV was established to invest in mid-life 737NG and A320ceo aircraft that are already on lease. It follows FTAI’s 2025 SPV, the company’s first Strategic Capital vehicle, which secured $2 billion in equity commitments and has committed about $6 billion of total capital across more than 300 aircraft. The transaction reinforces FTAI’s strategy of acquiring mid-life narrowbody aircraft while combining its aircraft ownership platform with its engine maintenance capabilities. The 10 off-lease aircraft will expand FTAI’s supply of CFM56-7B engines and modules for customers of its Maintenance, Repair and Exchange business. Locks in Five-Year GMF Capacity Last week, the company expanded its engine maintenance partnership with PT Garuda Maintenance Facility Aero Asia Tbk, or GMF, securing guaranteed maintenance capacity for five years across Asia-Pacific. The companies plan to expand into module and component repairs, helping extend CFM56 engine life, and eventually support CFM LEAP engines. Read Also: FTAI Announced a $500 Million Buyback This Month — Here's What Else Happened FTAI Earnings Preview and Analyst Price Targets Looking further out, the next major catalyst for the stock arrives with the Oct. 26 (estimated) earnings report. EPS Estimate: $1.35 (Up from $1.10 year-over-year) Revenue Estimate: $1.01 billion (Up from 67 cents billion YoY) Valuation: P/E of 38.2x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price forecast of $238. Recent analyst moves include: Barclays: Overweight (Lowers target to $310 on Sept. 16) Morgan Stanley: Overweight (Raises target to $360 on Aug. 21) BTIG: Buy (Lowers target to $350 on Aug. 4) FTAI ETF Exposure and Passive Fund Flow Risk Sofi Next 500 ETF (NYSE:SFY): 2.11% Weight Virtus Silvant Small/Mid Growth ETF (NYSE:SSMG): 2.19% Weight Significance: Because FTAI carries meaningful weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock. See More: Top Growth Stocks FTAI Stock Price Action FTAI Aviation shares were down 3.15% at $169.55 at publication on Monday, according to Benzinga Pro data. Photo via Shutterstock Read Also: Carnival Cruise Stock Hits 16-Month Low: ‘Higher Fuel Prices’ Could Mean More Trouble