AAR CorpAIR
▲ PositiveCapitalDemandrelevance
AAR beat earnings estimates and received upgraded forecasts, driving the stock to a 52-week high.
Impact on stocks 2
Aerospace & Aviation▲ · 2 stocks
AAR Corp
Woodward IncWWD
▲ PositiveDemandrelevance
Woodward's preferred distribution agreement with AAR expands market reach for its engine consumables.
Theme Impact 1
Off-coverage companies
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American Airlines CEO Warns High Jet Fuel Prices Could Force More Flight Cuts
American Airlines CEO Robert Isom warned that sustained high jet fuel prices will require adjustments to the carrier's capacity planning, speaking at the annual Morgan Stanley Laguna Conference in California on Sept. 16. Jet fuel averaged $4.53 per gallon for the week ending Sept. 18, a nearly 80% increase from the national average a year ago, driven by the war in Iran and the closure of the Strait of Hormuz following the U.S.-Israeli strike on Iran at the end of February 2026. American Airlines has already suspended routes at Los Angeles International Airport from cities including Cleveland and Pittsburgh and cancelled several high-profile routes to Middle Eastern cities, and Isom said more cancellations could follow if prices stay at current levels for months. Isom said he still expects American's third-quarter revenue to rise between 16% and 19% when earnings are reported later in October, noting that 30% of the airline's high-fare seats generated 50% of its total revenue in recent months. United Airlines CFO Michael Leskinen and Southwest Airlines CFO Tom Doxey echoed the concerns at the same investor gathering, with Leskinen saying the airline is flying to maximize profitability and free cash generation rather than market share, and Doxey saying trimming capacity is a natural response if fuel stays higher for longer. Consumer Price Index data showed the average flight within the U.S. sold in June, July, and August cost 25% more than during the same months in 2025.
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Amazon to Replace Boeing 767 Fleet With 30 Airbus A330 Freighters by 2027
Amazon.com plans to transition its air cargo fleet from Boeing 767 aircraft to Airbus A330 freighters, with Air Transport Services Group set to acquire and convert 30 Airbus A330 jets to support Amazon's air network. ATSG expects to begin operating the Airbus A330 cargo aircraft for Amazon in 2027 as part of the refreshed fleet. The switch gives Amazon access to larger, more modern cargo aircraft that can carry more volume per flight than the 767s they replace, potentially reshaping how the retailer positions inventory for Prime and marketplace orders, especially on longer domestic and transcontinental routes where aircraft range and payload matter most. The move marks a key shift in Amazon's air logistics strategy and lines up with the company's broader thesis of heavy capital spending on logistics and data centers as a trade off for efficiency and future return potential. The clearest proof point will arrive as ATSG starts flying the A330s in 2027, when Amazon discloses how much of its parcel volume flows through the new jets versus legacy aircraft and third party carriers, along with any commentary on unit costs per package or delivery speed.
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S&P 500 Q3 Earnings Expected to Rise 24%, Eighth Straight Double-Digit Quarter
S&P 500 earnings are expected to increase by +24% from the same period last year in the third quarter, the 8th straight quarter of double-digit earnings growth for the index, according to Zacks Investment Research. Earnings are expected to be above the year-earlier level for 14 of the 16 Zacks sectors, with 5 sectors expected to enjoy double-digit growth: Aerospace up +159.3%, Energy up +111.9%, Tech up +41.9%, Basic Materials up +31.2%, and Transportation up +15.1%. The Conglomerates sector is the only one expected to have lower earnings in Q3 relative to the same period last year, down 35.4%, while Consumer Staples earnings are expected to be flat. Excluding the Energy sector, Q3 earnings growth for the S&P 500 drops to +20% from +24%, and excluding the Tech sector, growth for the rest of the index drops to +14.4%. Nvidia's Q3 earnings are expected to increase +90% year-over-year on +91.2% higher revenues, while Micron's year-over-year earnings and revenue growth rates are expected to be +938% and +348.6%, respectively, and Tech sector earnings growth gets cut by slightly more than half once contributions from Nvidia and Micron are excluded. The Q3 earnings season will get the spotlight when the big banks report on October 13th, but the reporting cycle actually got underway with the September 10th quarterly releases from Oracle and Adobe, followed by homebuilder Lennar as the third S&P 500 member to report such Q3 results, with an additional six index members on deck this week including Costco, AutoZone and Darden. Total Q3 earnings for the three S&P 500 members that have reported results already are up +22.6% from the same period last year on +14.9% higher revenues, with 33.3% beating EPS estimates and 66.7% besting revenue estimates.