Here's Why FTAI Aviation Stock Surged in December (And Why it Could Be Good News for GE Aerospace and GE Vernova)

You need to understand GE Aerospace (NYSE: GE) and GE Vernova (NYSE: GEV) before understanding why shares in FTAI Aviation (NASDAQ: FTAI) rose by 13.6% in December, according to data provided by S&P Global Market Intelligence. Here's why, in the context of the stock's gain in December.

FTAI stock powers higher

The reason for the rise, and the spike in 2025 for that matter, comes down to the announcement of FTAI Power on Dec 30. Management described the business as being "a new platform focused on converting CFM56 engines to power turbines built to provide the most flexible, cost-efficient, and scaled solution for delivering reliable energy to data centers globally."

That announcement has excited the market due to the overriding need for data center power to support the booming growth in artificial intelligence (AI) applications and investment.

FTAI, GE Aerospace, and GE Vernova

FTAI's core business is aerospace products, whereby it develops, manufactures, repairs, and sells "aftermarket components for aircraft engines," primarily on the CFM56 engine. For reference, the CFM56 is manufactured by CFM International, a joint venture between GE Aerospace and Safran.

The CFM56 powers both the legacy Airbus A320 family of aircraft and the legacy Boeing 737 aircraft (the two narrow-body workhorses of the skies). Given that aircraft engines can last over 20 years, FTAI has a long-term revenue opportunity from servicing CFM56 engines.

Image source: Getty Images.

This puts it in a rather unusual situation: competing with GE Aerospace to service the engines CFM mathat nufactures, while at the same time offering a secondary market for those engines that ,hwhich airlines run thoperatelonger and keeps CFM the dominant player in aircraft engines.

Moreover, as you might expect from GE Vernova (which was part of the former General Electric and now GE Aerospace), the company manufactures aeroderivative engines for on-site data power. As such, FTAI is now competing with GE Vernova as well.

What it means for investors

It's good news for investors because FTAI is ideally placed to develop FTAI Power given its existing operations in buying, leasing, and repairing CFM56 engines. It's also good news because GE Aerospace (CFM) is becoming more aggressive in signing Long-Term Service Agreements (LTSA) when it sells its newer LEAP engines, which could create hurdles for FTAI in the future.

Image source: Getty Images.

As such, the move to create FTAI Power and double down on the CFM56 is a good move for FTAI. It may even benefit GE Aerospace by keeping airlines using CFM engines, and it might also be good news for GE Vernova, as it validates aeroderivatives technology. Note that GE Vernova is an original equipment manufacturer of aeroderivatives, while FTAI Power will convert old CFM56 engines. There's likely to be a market for both.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing and GE Aerospace. The Motley Fool recommends Ge Vernova. The Motley Fool has a disclosure policy.