AAR Corp is benefiting from robust air travel demand, with record bookings persisting despite elevated fuel prices. Modest capacity adjustments by airlines have not reduced fleet sizes or parts demand, and carriers are planning for a busy summer that supports maintenance and distribution services.

The Distribution segment posted 36% organic growth in new parts, driven two-thirds by same-store sales and one-third by new contracts and pricing adjustments. Defense distribution led the surge with 55% organic increase, while engine, airframe and avionics channels all showed broad-based strength.

The integration of HAECO Americas is ahead of schedule, marked by completed hangar expansions in Oklahoma City and an upcoming Miami facility launch. Short-term margin dilution occurred due to work transition and the exit from the Indianapolis facility, but operational alignment and system implementations are on track.

Despite integration headwinds, margins benefited from strong performance at AAR’s Distribution and ADI units and a solid quarter for Trax. Management expects margin improvements as HAECO synergies are realized and remains confident in visibility through the summer demand cycle.