This article is published in Aviation Week MRO part of Aviation Week Intelligence Network (AWIN), and is complimentary through Mar 20, 2026. For information on becoming an AWIN Member to access more content like this, click here.
Parts provider AerSale has predicted another challenging year for sourcing feedstock due to intense competition for used aircraft and engine purchases.
The U.S. parts, MRO, and leasing provider invested $100 million in feedstock in 2025, but anticipates a lower level this year as pricing remains elevated.
CEO Nicolas Finazzo said on a recent earnings call that AerSale only wins one in 10 deals it bids on, not to mention the hundreds of potential purchases it doesn’t even feel comfortable pursuing.
“I candidly believe less informed people don’t understand how difficult it is to make money buying used flight equipment, and then parting it out, and then finding a way to extract value out of it. We see people buying stuff at prices ... that are well beyond what we believe we can make in total margin based on what they have to pay for to win the deal,” he said.
AerSale reported broadly flat revenue in 2025, at $335 million, of which $212 million came from its asset management division. This covers sales of used serviceable material (USM), flight equipment and leasing.
The remaining $123 million came from maintenance sales, which fell slightly despite a generally strong market for MRO demand. AerSale said this was due to decreases at its on-airport MRO facilities, partially offset by increased revenue from the company’s aerostructures and landing gear MRO facilities.
However, it expects improvements this year due to new projects coming on line and shifts in focus.
These include a move toward storage and end-of-life fleet activities at its Roswell, New Mexico, facility, largely offsetting lost heavy check margin. In December 2025, meanwhile, its Millington, Tennessee, site became fully operational, following the award of a multiyear maintenance agreement with a regional airline.
“Looking ahead to 2026, we’re mitigating earnings volatility by growing the more recurring and predictable parts of our business,” Finazzo noted.
These initiatives include filling capacity at all MRO facilities, growing USM sales, generating additional component MRO revenue, and increasing the number of assets deployed in its lease pool.
Editor’s Note: For more on competition in the used serviceable material segment, stay tuned for Aviation Week’s upcoming April-May issue of Inside MRO.
Related Content
