Honeywell Aerospace (HONA) secured two airline deals on Monday covering more than 900 aircraft, sending the stock up 1.56% to close at $211.63 on Friday.
The larger of the two deals sees Indian carrier IndiGo select Honeywell’s avionics and power systems for 810 Airbus A320neo-family aircraft. The package includes auxiliary power units, weather radar, traffic collision avoidance systems, flight management systems, and aftermarket support.
Honeywell has supplied equipment to IndiGo since 2015. The airline currently operates more than 400 aircraft, making this a major expansion of that existing relationship.
The aftermarket support component is worth watching. Adding systems across hundreds of new planes creates a pipeline of recurring maintenance and service revenue over the life of those aircraft.
In a separate announcement, Aeromexico plans to install Honeywell’s Surface Alerts (SURF-A) technology across more than 100 Boeing 737 NG and 737 MAX aircraft.
SURF-A gives pilots real-time audio and visual alerts when an aircraft is on course to collide with another plane on the runway. It uses GPS data, Automatic Dependent Surveillance-Broadcast (ADS-B) equipment, and software analytics to detect traffic hazards.
Honeywell expects FAA certification of SURF-A on several Boeing aircraft to begin in Q4 2026, continuing into 2027. That timing matters — Aeromexico’s revenue contribution from this deal may hinge on how quickly approvals come through.
Neither deal included disclosed financial terms, which limits how much analysts can factor them into near-term earnings estimates.
Wall Street’s current consensus on HONA is a Moderate Buy, based on 12 analyst ratings over the past three months. Four analysts rate it a Buy, while eight rate it a Hold.
The average price target sits at $260, implying roughly 22% upside from the current price of $211.63.
The IndiGo contract is widely seen as the more financially meaningful of the two deals, given its size and the aftermarket component attached to it.
Honeywell has supplied equipment to IndiGo since 2015, and this latest contract extends that relationship across hundreds of new-generation aircraft.
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